Paid Ads VS SEO: Which is Better for Lead Generation?



You can generate tons of leads through many different channels, but they aren’t all equal. The real question is, are paid ads or SEO better for lead generation?

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00:00 – Introduction
00:55 – Pros Of Paid Ads
01:50 – Cons Of Paid Ads
03:15 – Pros Of SEO
05:01 – Cons Of SEO
06:16 – Which One Has Best Roi? Paid Ads or SEO
07:40 – Quite Of A Temporary Solution To Do With The SEO To Get More Organic Traffic.
08:25 – Bottom Line: Paid Ads Are Great, But When It Comes To “Time” SEO is The Guy.

Paid ads are a great way for you to get results in the short term. You can get targeted traffic to your website from day one, but it comes at a cost. On the other hand, SEO can bring you traffic to your website for free, for long periods of time.

So in other words, if you stop spending money on SEO, you still get the traffic. And if you don’t pay an agency like mine, NP digital to get you that traffic, you can do it yourself for free. So before we dive into which one has better return on investment, let’s take a look at the pros and cons of each of them.

Pros of paid ads, fast results. As soon as you start the campaign, you can start getting clicks. May not always be profitable, but you can get clicks. The data that you get from the campaigns is amazing and you get the data fast.

You can get a clear picture of which keywords are working, what are best for you from a demographic standpoint, geography standpoint and that way you can optimize for that in real time. And I love the targeting. With paid ads, you can have as many options with targeting as you want.

From not just being state-based, you can also target city specifics or country specifics, even within a certain radius of your business. Not only that, you can personalize almost each in every single area of your segmentation. That allows you to fine tune relevant messaging, according to each form of segmentation. And that’s easy to do with paid ads.

Now here’s the cons, right? We went down the pros, there are some cons as well. You have to spend money, or you’re not really going to get anything from it. That’s the sad part. Needless to say that if you don’t have the money to spend on ads and ads aren’t for you.

Well that’s okay, but keep in mind, some ads are highly profitable. If they weren’t, people wouldn’t keep doing them. And if you’re willing to just spend a little bit of money up front, or you sign up for some of those hosting companies that give it to you for free, you’ll be able to figure out really quickly, if you can generate money from your paid ads.

But here’s another con. Even though you’re generating revenue from it and you can scale up really quickly, it typically starts costing more and more money as you scale up. I’m not talking about spending more money. Of course, you’re going to spend money because you’re scaling up. But your cost per lead, your cost per visitor, your cost per conversion, it keeps typically going up as time goes on when you’re scaling up or time just goes on.

You know, if I go back 10 years ago, CPCs were really cheap. Now they’re expensive. Heck next year, even more expensive. Heck, during COVID, things still went up in cost. The cost per customer continually goes up. And you need to keep spending more money to acquire customers over time. And that’s why you have to optimize your funnel.

► If you need help growing your business check out my ad agency Neil Patel Digital https://npdigital.com/

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https://youtu.be/ICwBA4192To

#SEO #NeilPatel #DigitalMarketing

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  1. as someone with very little money looking to get into digital marketing, im torn on where to invest my resources. ive been thinking about CPC but SEO seems like a cheaper option but im still just kind of lost. its a hard industry to break in to

  2. Logical & accurate video Neil! Thanks for sharing!
    1 question though. I'm currently applying my SEO academic knowledge in the corporate world. Any recommendations for SEO related to Real Estate Companies? All what is required eventually is clicks, leads, leads and leads 😀 and actual converters; but the market is very competitive. I am definitely working on on page and off page SEO. Crawling, Indexing, Ranking parts of course.. But mainly the most beneficial parts are linkbuilding and longtail keywords (low difficulty/competition ; average Volume search). Content is really important too! I know SEO is a long term investment but any advice would be crucial and truly appreciated! (Definitely dedicating work for Paid Ads as well).
    Cheers Neil 🙂

  3. When you say your cost per conversion goes up, why is that? On Facebook it is because the pool is static-ish and the easy buyers are used up first, but Google is evidence of real time buyer motivation so why would they cost more and more?

  4. Hey Neil this is a very actionable and interesting video! Thanks for publishing great content. Are you interested in interviewing me, a 17 year old who grew an affiliate site from 0 to 70,000 organic monthly visitors in 1 year using your SEO strategies?

  5. great video Neil!
    i wondered, lets say i have a blog post regarding top wordpress plugins for a faster website and i use paid ads on it, but many people click the share button on that specific page, will that improve my website's seo and increse my rankings on the keywords from that page?
    thanks in advance and i love your content!

  6. Post the corona era. Small companies wants results from day 1 and that is why they prefer paid ads over SEO or long term goals. However, these explanation will surely help small companies to focus on SEO and organic traffic the due importance that they want. Thanks for sharing

  7. Great video Neil! I think paid ads are great for leads gen in the short term, but SEO is fantastic for that long term organic lead generation which is not completely free but at the same could pay off very well.

  8. Just need to strike a balance between both paid ads and SEO.

    For me, I for the SEO mainly because I running a personal blog with no income being generated, so it doesn't make sense for me to go for paid ads.

    I would just to focus on my content, etc. to improve my blog visibility.

  9. Hey, Neil first of all thank you for clarifying which has better roi in terms of seo and paid ads. My question is let's say I'm beginners want to learn how to run paid ads in real time practice. Is there any platform which gives us chance as a beginners to run paid ads so that we know whatever the campaign we run do better or not.

  10. You just confirmed what I tell people when they ask me this question. Great video Neil. The skill to learn for the future is how to take a long tail keyword that is non competitive, and flip it over to the acquisition of a lead of a very highly competitive and expensive CPC keyword through properly assembled content.

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