Paid Advertising vs Search Engine Optimization
Last week we were speaking with a local business owner as he decided on his marketing budget.
This is a question we get asked constantly, which leads us to believe that one very important piece of information is not understood by most business owners.
Why is this?
When a business is just starting out, it is IMPOSSIBLE for that business to be on page 1 of search engine result pages, unless they are the only business in the entire world offering that service.
Businesses that have been doing it for longer and who have invested more time and money into search engine optimization will always show up before the new business just starting out.
There is no way around this.
Most search engines understood this and they came up with paid advertising. When a company pays for digital advertising on a platform they can show up at the top of search engine result pages.
How does a small business take advantage of this information?
If you are just starting out as a business or if you have never done SEO for your business, that business should spend 75% of its budget on Paid Advertising and 25% of its budget on SEO.
Once the SEO starts gaining traffic and a business starts seeing decent results from it’s SEO, that business should change the budget to 50% Paid Ads and 50% SEO.
This is the sweet spot for businesses. I would never recommend for a business to stop paid advertising all together, but I would suggest the 25/75 ratio.
Neither is more important than the other. Both are extremely rewarding in their own ways.