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Does SEO have a Higher ROI than Paid Advertising?

Let's get straight to the point. Yes! SEO has a higher return on investment (ROI) than paid advertising.

SEO has a higher average conversion rate than paid advertising. SEO is also a long-term investment that provides results over time, while paid advertising is a short-term investment that delivers immediate results.

SEO has higher click-through rates than paid advertising, meaning that it has the potential to drive significantly higher volumes of organic traffic. In addition, your cost per acquisition (CPA) is going to be much lower using SEO than paid advertising.

However, it is important to note that both SEO and paid advertising can be effective marketing channels, and the best option for your business will depend on your specific goals and budget.

Here are some of the reasons why SEO can have a higher ROI than paid advertising:

  • SEO is a long-term investment: The results of SEO take time to build, but they can be very sustainable over time. Once you've optimized your website for search engines, you'll continue to receive organic traffic for as long as your content is relevant and informative.
  • SEO is more cost-effective: Once you've completed the initial SEO work, you won't need to pay for ongoing advertising like you do for PPC. You may be paying a monthly fee to an SEO company, but compared to the cost of PPC, it is significantly lower. This can save you a significant amount of money over time, especially if you're targeting high-cost keywords. Once your keywords are ranking on page one of the search engines, like Google and Bing, they will remain there as long as your SEO efforts continue. With paid advertising, when you stop advertising, your website will not get found.
  • SEO leads are more qualified: People who find your website through organic search are already interested in what you have to offer. This means that they're more likely to convert into leads or customers than people who click on your paid ads. More people trust organic results over paid ads anyway. According to a study by Search Engine Watch, 94% of people choose a business from an organic result versus a paid ad. This means that for every 100 people who search for a business on Google, only 6 will click on a paid ad.

Organic Results for the Win

There are a few reasons why people are more likely to choose a business from an organic result. First, organic results are seen as more credible. People trust that Google has ranked these results based on their relevance and quality, so they're more likely to click on them.

Second, organic results are often more informative. Paid ads are limited to a few lines of text, while organic results can include longer descriptions, reviews, and other information that can help people make a decision.

Of course, there are also some advantages to paid advertising:

  • Paid advertising can generate immediate results: If you need to drive traffic to your website quickly, paid advertising can be a good option. You can start running ads as soon as you're ready, and you'll start seeing results within a few days or weeks.
  • Paid advertising can target specific audiences: You can use paid advertising to target specific demographics, interests, and even keywords. This means that your ads will be seen by people who are most likely to be interested in what you have to offer.

Here are some additional statistics about organic vs. paid search:

  • 53% of all web traffic comes from organic search.
  • Only 15% comes from paid search.
  • B2B businesses generate twice as much revenue from organic search than all other channels combined.
  • Around 26% of US internet users use ad blockers.
  • 11% of search ad clicks are fraudulent or invalid.

Ultimately, the best way to determine which marketing channel is right for your business is to experiment and track your results. Try both SEO and paid advertising and see which one generates the most leads and sales for your business. We always recommend an SEO campaign coupled with a PPC campaign for the most growth, as long as it is within your budget.

How important is SEO for your business? Click to read more.

We'll be happy to manage your SEO and PPC campaigns. Give us a shout and let's see if we are the right fit to have a rewarding partnership to help you reach your business goals.

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