If you need leads now, run PPC. If you can wait 3–6 months and want compounding returns, prioritize SEO. 2025 data shows Organic #1 earns ~36–40% CTR (AWR Sep 2025), while average Google Ads CTR is 6.66% (WordStream 2025).
I work wth a lot of small to medium size businesses and like to help them get the most for their money. A common question that comes up when you’re ready to get serious about marketing your website is: Where should I spend my budget — SEO or PPC?
Most people don’t have unlimited funds. So if you had to pick just one, what should it be?
What You’re Really Getting With PPC
With Pay Per Click (PPC), you’re buying visits, plain and simple. You pay to show up, and you keep paying to stay there. Stop the spend? Traffic stops too.
That can work well if you need leads fast, whether you’re launching something new, trying to boost sales in a slow month, or just getting your site off the ground.
Google Local Service Ads
Google Ads has evolved over the years. You’ve got search campaigns, display, video, retargeting — and for local businesses, Local Services Ads, which includes the Google Guaranteed program. If your business qualifies, you can appear at the very top of local search results — even above the traditional Google Ads section. You don’t pay per click here; you pay per lead. And that green checkmark badge? It signals trust to potential customers before they even click.
But there’s a catch, when Google Guaranteed listings show up, they push regular Google Ads lower on the page, sometimes below the fold on mobile. That can shrink your ad visibility, especially in competitive local markets. So if you’re running standard Google Ads and wondering why impressions dropped, Google Guaranteed could be one reason. If it is available in your region and for your industry, I would recommend getting it all setup, and then put it on pause if you didn’t want to put funds into it right away. One client used the Paused option a lot early on when there wasn’t a lot of competition in his city. If an ad is paused, it will be behind the ones that are paying. But you won’t be paying for the leads and the calls will not be recorded. This tactic may not be always available.
Depending on your industry, it’s worth looking into to have this ready to go when ever the time is needed.
What to Know Before You Apply
If you’re considering Google Local Services Ads (LSA), keep these details in mind:
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LSA is only available for select industries like home services, real estate, and legal.
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You’ll need business verification, proof of insurance, and background checks before ads can run.
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Dispute resolution is available — if a lead isn’t valid, you can request a credit.
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Categories and availability vary by region, so check if your area supports your service type.
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Verified accounts often get extra impressions during the first few weeks.
Even if you’re not ready to fund it yet, getting verified early helps you go live faster when competition increases.
Building Long Term Leads with SEO
SEO does takes time, there’s no short cut around the organic side of things. You’re not going to rank overnight. But unlike PPC, the work you put in actually builds something.
When you invest in SEO, you’re improving your site structure, content quality, and online reputation. That means better rankings, more visibility, and more trust over time. And with Google doubling down on quality signals like E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness), it’s even more important to play the long game.
Done right, SEO becomes a steady lead generator, and you’re not paying every time someone clicks.
Why a Combined Strategy Often Makes Sense
For most websites, especially if you’re just getting started, running both SEO and PPC together makes a lot of sense.
Use PPC to get traffic and leads coming in sooner while your SEO efforts are building in the background. You’ll get valuable data on which keywords convert, and you can use that to guide your content strategy. Over time, as your SEO picks up, you can scale back your PPC spend or use it more strategically — like retargeting or branded campaigns.
If you’re eligible for Google Guaranteed, it can also give you a jumpstart in local visibility and lead trust.
| Position | CTR – People Also Ask + Organic | CTR – Organic (Aggregated) |
|---|---|---|
| 1 | 40.12% | 36.2% |
| 2 | 13.05% | 11.5% |
| 3 | 5.62% | 5.59% |
| 4 | 3.78% | 2.91% |
| 5 | 2.71% | 1.92% |
| 6 | 1.98% | 1.34% |
| 7 | 1.47% | 1.14% |
| 8 | 1.18% | 1.06% |
| 9 | 0.99% | 0.93% |
| 10 | 0.90% | 0.76% |
| 11–20 | 0.25–0.85% | 0.43–1.07% |
How SERP Features Affect CTR
It’s not just ranking that determines clicks anymore. SERP features like People Also Ask, Local Packs, and featured snippets can dramatically change how much attention organic results get.
In Advanced Web Ranking’s September 2025 study, pages with “People Also Ask” boxes nearby saw the top organic listing drop from 40.1% CTR to 36.2% — just from added SERP clutter.
That means even when you rank #1, optimizing your title, meta, and structured data still matters to stand out visually and capture those clicks.
| Google position | Organic CTR People Also Ask plus Organic | Organic CTR Aggregated | Average PPC CTR (all industries) |
|---|---|---|---|
| 1 | 40.12 % | 36.2 % | 6.66 % |
| 2 | 13.05 % | 11.5 % | N/A |
| 3 | 5.62 % | 5.59 % | N/A |
| 4 | 3.78 % | 2.91 % | N/A |
| 5 | 2.71 % | 1.92 % | N/A |
| 6–10 | 0.9 – 1.9 % | 0.8 – 1.3 % | N/A |
Notes: “People Also Ask + Organic” reflects SERPs where PAA boxes appear, which typically lowers organic CTR vs “Aggregated”.
Sources: Advanced Web Ranking – Google Organic SERP CTR Curve (Sep 2025) ·
WordStream by LocaliQ – 2025 Google Ads Benchmarks
Sources:
- Advanced Web Ranking – Google Organic SERP CTR Curve (September 2025).
Data pulled from the AWR interactive chart showing average click-through rates for global desktop searches. - WordStream by LocaliQ – 2025 Google Ads Benchmarks (Apr 2024 – Mar 2025, 16 000 + campaigns).
Average PPC CTR = 6.66 %; Average CPC = $5.26; Average CVR = 7.52 %; Average CPL = $70.11.
What the Data is Telling Us
- The #1 organic result draws about 36 %–40 % of all clicks, while the average Google Ad captures only around 6 %–7 %.
- By position 3, organic CTR drops to roughly 5.6 %, yet it still matches paid search performance — without paying per click.
- Legal leads remain the most expensive in PPC at $131 per lead, whereas Auto Repair averages $28, highlighting wide cost variation across industries.
- As average CPCs rose to $5.26, SEO continues to provide traffic that compounds in value over time instead of consuming budget daily.
Your Options working with a Limited Budget
If you have to choose where to invest, think of PPC as short-term fuel and SEO as long-term equity.
- PPC gives you immediate visibility and lead flow.
- SEO builds trust and sustainable traffic that keeps producing results even if you stop spending.
Data references: Advanced Web Ranking (Sept 2025); WordStream by LocaliQ (2025 Google Ads Benchmarks).
Cost and Timeline: SEO vs PPC
Cost and timing are two of the biggest factors when choosing where to invest. Here’s what each channel typically looks like for small and mid-sized businesses:
| Factor | SEO | PPC |
|---|---|---|
| Initial Setup | Site optimization, keyword mapping, content planning | Campaign setup, ad copy, keyword targeting, landing page setup |
| Ongoing Cost | Time, content creation, link building (no per-click cost) | Pay per click or per lead (budget-controlled) |
| Time to See Results | Usually 3–6 months for steady leads | Immediate visibility (same day) |
| ROI Window | Compounds over time — grows stronger with age | Short-term; results stop when ads stop |
| Scalability | Slower, based on ranking improvements | Instantly scalable with budget |
What to Expect from SEO in the First 6 Months
SEO isn’t instant — but once it gains traction, it pays off steadily. Here’s what a typical 6-month journey looks like:
| Month | Focus | What to Expect |
|---|---|---|
| 1–2 | Site optimization, keyword research, technical setup | Stronger foundation, baseline metrics established |
| 3–4 | Content publishing, link outreach | Early keyword movement and first organic leads |
| 5–6 | Authority building, on-page refinement | Consistent traffic, steady lead flow, reduced dependency on paid ads |
So, If You Had to Choose Just One…
If you’re in a position where you have to choose just one — it really comes down to your goals, timeline, and business type.
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If you’re a new business with no search presence and need leads fast, PPC can give you that immediate boost, especially if you’re in an industry where Google Guaranteed is an option. Just be prepared to pay for every lead and know it’s a short-term fix unless you invest in SEO alongside it later.
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If you’re in a seasonal business, PPC is great for short bursts during peak months. It gives you control over timing and budget.
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If you’re thinking long-term, and you want to build a steady stream of leads that doesn’t rely on constant ad spend, SEO is the better investment. It helps you own your presence online and builds trust over time.
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If you’re in a competitive industry, SEO is a must. You’ll need strong organic rankings to stand out, and once you earn them, they’re harder for competitors to take away. Paid ads come and go — but a well-ranked page keeps working.
When to Use SEO, PPC, or Both
- Need leads this week? → Use PPC for immediate visibility.
- Launching a new site? → Start PPC for quick data, build SEO alongside.
- Highly seasonal business? → Run PPC during peak months, maintain SEO year-round.
- Local or service-based? → Combine Local SEO with Google Local Services Ads.
- Operating on a small budget? → Split spend (70/30 early, 30/70 later) as organic rankings build.
