"Should we do SEO or paid ads?"
It's the wrong question. But it's the one everyone asks, so let's answer it properly.
The real question is: What are you optimizing for, and over what timeframe?
Paid ads and SEO solve different problems. Choosing between them without understanding those problems is like asking whether you should buy a car or a bicycle without knowing if you're commuting 50 miles or 5 blocks.
The fundamental trade-off
Paid ads: You pay, you get traffic. You stop paying, traffic stops.
SEO: You invest, you wait, eventually you get traffic that continues without ongoing payment.
That's the entire difference. Everything else is details.
Neither is inherently "better." They optimize for different things:
- Paid ads optimize for speed and control
- SEO optimizes for cost efficiency over time
What paid ads actually cost
Let's do real math instead of abstractions.
Average cost-per-click by industry (Google Ads, 2025-2026):
| Industry | Average CPC |
|---|---|
| Insurance | $55-80 |
| Legal | $45-70 |
| B2B SaaS | $15-35 |
| E-commerce | $1-3 |
| Local services | $2-8 |
| Consumer products | $0.50-2 |
What that means in practice:
A B2B SaaS company paying $25/click with a 2% conversion rate spends $1,250 to acquire one customer through paid ads.
That customer better be worth significantly more than $1,250 to make this work.
The budget problem:
At $25/click, a $2,500 monthly budget gets you 100 clicks. With 2% conversion, that's 2 customers.
To scale with paid ads means spending proportionally more. Want 20 customers? Spend $25,000. There's no leverage.
What SEO actually costs
SEO costs are different — they're investments that compound rather than expenses that disappear.
The investment required:
- Content creation: $150-400 per article (freelance) or tool costs (automation)
- Technical setup: One-time cost of a few thousand (or free if you DIY)
- Ongoing time: 5-15 hours weekly for management, or near-zero with automation
- Tools: $0-500/month depending on needs
What that looks like in practice:
Year 1: Invest $12,000 in content (100 articles at average $120 each using automation like Soro)
That content then generates traffic for years without additional spend. Let's say it brings 5,000 monthly visitors by month 18, with 2% conversion — that's 100 leads per month, indefinitely.
Cost per lead after 2 years: Effectively approaches zero on a marginal basis.
The leverage difference:
With SEO, work done in month 3 still generates traffic in year 3. The investment compounds rather than disappearing the moment you stop.
Related reading:
- Affordable SEO for Small Business — Making SEO work on limited budgets
- How to Do SEO Yourself — Complete DIY guide
When paid ads make more sense
Paid ads are the right choice in specific situations:
You need leads this week
SEO takes 6-12 months to show meaningful results. If you have a sales team waiting for leads or revenue targets this quarter, paid ads solve that problem immediately.
You're testing a new market
Before investing in SEO content for a new product or audience, paid ads tell you quickly whether demand exists. Better to spend $2,000 on ads learning nobody wants your product than spend $15,000 on SEO content.
Time-sensitive campaigns
Product launches, seasonal promotions, limited-time offers — SEO can't respond quickly enough. Paid ads can be live within hours.
High customer lifetime value
If your average customer is worth $50,000+ over their lifetime (enterprise software, professional services), paying $1,000 to acquire them makes sense. The CAC math works.
Competitive keywords you can't win
Some keywords are dominated by mega-competitors with years of SEO investment. If you can't realistically rank, but the keyword has buying intent, paid ads let you compete.
When SEO makes more sense
SEO is the right choice in other specific situations:
Customer acquisition cost matters
If you're in a lower-margin business where CAC directly impacts profitability, SEO's efficiency at scale is crucial.
Example: An e-commerce store with 20% margins can't afford $15/click indefinitely. But SEO traffic costs essentially nothing per visitor once the content exists.
You can commit to 12+ months
SEO only works with sustained effort. If you'll give up after 4 months without results, save your money and do paid ads instead.
You're building a long-term business
If you're planning to sell the business or grow it over many years, SEO creates a valuable asset. Traffic-generating content has real value in acquisitions.
Your competitors are investing in SEO
If competitors rank on page 1 and you don't, you're invisible to a segment of your market. Some customers only find businesses through organic search.
Trust matters in your industry
For high-consideration purchases (financial services, healthcare, expensive B2B), organic rankings signal credibility differently than ads. Buyers research. Being the helpful resource during that research builds trust.
The real comparison most businesses need
Let's model two scenarios for a B2B company:
Scenario A: All paid ads
Monthly budget: $5,000
Cost per click: $20
Conversion rate: 2%
Monthly leads: 12.5
Annual spend: $60,000
Annual leads: 150
Cost per lead: $400
If they stop spending, leads stop immediately.
Scenario B: All SEO (via automation)
Monthly investment: $300 (automation tool + minimal time)
Content produced: ~30 articles/month
Year 1 results: Minimal traffic (building phase)
Year 2 results: 3,000 monthly visitors, 60 leads/month
Annual investment year 2: $3,600
Annual leads year 2: 720
Cost per lead year 2: $5
And the leads continue growing while the content asset appreciates.
The real math
After 2 years:
- Paid ads route: $120,000 spent, 300 leads, no ongoing benefit
- SEO route: $7,200 spent, ~800 leads total, growing asset
The difference is dramatic. But it only shows up if you can wait.
The hybrid approach most smart businesses use
Here's what actually works for most small businesses:
Phase 1: Validate with paid ads (Months 1-3)
Spend $1,500-3,000 testing demand. Figure out which keywords convert. Learn what messaging resonates. Build initial revenue or prove the market exists.
Phase 2: Begin SEO investment (Months 2-6)
While ads are running, start publishing content. Target keywords you validated with paid ads. Build the foundation for organic traffic.
Phase 3: Shift budget as SEO shows results (Months 6-12)
As organic traffic grows, reduce paid spend proportionally. Every organic lead is money not spent on ads.
Phase 4: Maintenance mode (Month 12+)
Continue SEO content production at sustainable pace. Use paid ads only for time-sensitive campaigns or keywords you can't win organically.
The result: You get immediate leads from ads while building the long-term asset of organic traffic. As SEO compounds, paid spend decreases while lead volume increases.
Warning signs you're in the wrong channel
You should switch from paid to SEO if:
- Customer acquisition cost is eating your margins
- You've been running ads for years with no asset to show for it
- Competitors are beating you on organic while you're paying for every click
- Your business model requires cheaper leads to be profitable
You should switch from SEO to paid if:
- You need revenue in the next 90 days or you're dead
- After 12+ months, organic traffic isn't growing meaningfully
- Your market is so competitive that organic ranking is unrealistic
- Your product lifecycle is so short that waiting for SEO doesn't make sense
The bottom line
Choose paid ads when: You need speed, control, or are validating a market. Accept the higher long-term cost for immediate results.
Choose SEO when: You're building for the long term and can commit to 12+ months of consistent investment. Accept the delayed gratification for dramatically better economics.
For most small businesses: Start with paid to validate and survive, then systematically shift to SEO for efficiency. Don't choose one forever — let the situation determine the channel.
The businesses that do best treat marketing channels as tools, not religions. Use the right tool for the job in front of you.
Related reading:
- Why Your SEO Isn't Working — Diagnosing common problems
- Is SEO Dead in 2026? — Why organic still matters
- Content Automation Guide — Making SEO investment sustainable