This is such a fun debate. Put a Paid Ads Specialist in a room with an SEO Specialist and what do you get? A heated argument where one says, “I get results yesterday!” and the other replies, “Yeah, but mine last forever.” And somewhere in the corner, your marketing budget quietly hides under the table.

When you’re deciding where to invest your marketing budget, the “SEO vs Paid Ads” question is one of the most common — and for good reason.

Both strategies can drive traffic, leads, and revenue, but they work in very different ways. Paid Ads (PPC) gives you immediate visibility and results — but only as long as you keep paying. SEO (Search Engine Optimisation) takes longer to build, but can deliver sustained organic traffic and compounding value over time.

So which one should you choose? The answer depends on your business goals, budget, and timeline — but here’s how they compare head‑to‑head.

How They Work

Paid Ads (PPC / Google Ads / Meta Ads/Facebook & Instagram Ads)

Paid campaigns put your business in front of searchers instantly. You bid on keywords or placements, and when someone searches, your ad appears at the top of results. PPC works immediately, but it stops when the budget stops.

SEO (Organic Search)
SEO doesn’t pay for each click. Instead, you optimise your website for relevance, authority, and quality so it ranks high in organic (unpaid) search results. It takes time — often several months, and sometimes years in competitive markets — but the traffic keeps coming without paying per click.

Cost: Which Is More Expensive?

There’s no one answer here, because costs depend on competition, keywords, and industry — but generally:

Paid Ads

- You pay every time someone clicks your ad (cost per click, CPC).

- In competitive niches (like finance), CPCs can be high — sometimes several dollars per click or more.

- Ongoing spend is required — if you stop, traffic stops.

SEO

- Cost is usually in ongoing optimisation work: content creation, backlinks, technical fixes, and strategic effort.

- There’s no cost per click, and once you rank high, traffic is essentially free (but then it's not because SEO costs money too).

Results take longer to build, but each ranking can continue to deliver value for months or years.

SEO is often more cost‑efficient long‑term, while PPC is more expensive per click but gives immediate reach.

Conversion Rates: SEO vs Paid Ads

Average conversion rates vary by industry and source, but some consistent trends emerge.

SEO traffic often converts higher than PPC traffic on average — for example, benchmarks show organic conversion around 2.4% vs. PPC at 1.3%. This pattern appears because organic search traffic often reflects stronger intent and trust — someone who finds you through search results may already be evaluating options, not just browsing.

An Industry Breakdown:

Financial services and B2B type searches: SEO tends to deliver higher conversion rates than PPC — in some estimates organic can convert several times better.

Ecommerce: PPC sometimes matches or slightly outperforms SEO in immediate conversions for transactional search terms, especially when bidding on purchase‑intent keywords.

Both have there uses. For direct sales or quick promotion of new products, PPC can drive early conversions while SEO builds authority.

Which Is Better? The simple answer: neither strategy is universally “better” — they serve different purposes.

Paid Ads are better if you need:

- Fast traffic and leads

- Predictable campaign activity

- Seasonal or short-term promotions

- Complete control over messaging and targeting

SEO is better if you want:

- Long-term brand visibility

- Lower cost per lead over time

- Traffic that doesn’t stop when you stop spending

- Strong trust signals and authority in search engines

Many successful businesses team up both. For an established business with a steady stream of revenue, running PPC ensures immediate visibility while your SEO foundation is building. Use SEO to reduce long‑term customer acquisition costs and capture sustainable traffic.

Industry‑Specific Perspectives, But Not A One-Size Fits All

Here’s a quick look at how different businesses might prioritise each strategy:

Financial Planners & Mortgage Brokers

- Search queries often involve research and comparison, not urgent purchases.

- PPC performs extremely well for niche-specific areas like "Financial Adviser for Aged Care"/not "Financial Adviser in Sydney"

- SEO amplifies authority and trust — users researching financial decisions tend to convert better from organic search versus ad clicks.

Accountants & Professional Services

- These audiences usually research providers carefully.

- Organic search presence and content that answers questions (e.g., tax advice, guides) often convert more effectively than ads alone.

Ecommerce Stores

- PPC is very effective for transactional search terms (e.g., “buy [product] now”).

- SEO builds long term trust and discovery, especially for category, product information and comparison searches.

When comparing SEO versus paid ads, paid ads deliver fast results but with ongoing cost whereas SEO delivers compounding value over time with lower cost per lead. The most effective strategy for many businesses is a hybrid approach — use PPC for immediate visibility while investing in SEO for long‑term growth.

Still unsure about the best approach for your business? We would love to discuss your business goals and the best way to grow. Reach out today for an obligation-free chat.