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June 6th, 2008

The Internet Marketing Battle, SEO Or PPC?

This is a lifelong argument that can last forever. Which works better SEO or PPC? I don’t think asking the question which one works better is the right question only because I believe each one has it’s own unique benefits and pitfalls. The right question one should ask should be which one offers a better ROI (return on investment). This is the right way of looking at this debatable argument as it is much more accurate when calculating ROI than to measure which works better. Let us say for instance you run a PPC campaign and get two hundred clicks at $1.00 per click. That will be a total cost of two hundred dollars for the PPC campaign. With a 2% conversion rate on the site that would work out to four sales. Now let us say we run a “cheap search engine optimization” campaign. For argument sake we will say that it will cost you one thousand dollars to get a fully optimized website setup for you. Now when it comes to SEO, time is the biggest factor as it can take anywhere from two weeks to two years to get ranked in the search engines. However for this example let’s say that you get listed within two weeks. Now this will be measured over a 12 month period. The PPC campaign is a monthly cost so it works out to $200 x 12 months = $2400 per year. You make four sales per month so 4 x 12 = 48 sales per year. Let us say your product makes you fifty dollars per sale. This will equal 48 x $50 = $2400 per year. Your ROI is then 0% as you have not lost any money or have not gained a profit. Now lets say your SEO optimized website brings you only fifty visitors per day. With a 2% conversion rate you should make $50 per day. There are 365 days in a year so this will equal $18250 per year. This is a much greater ROI at approx 700%. Now this is just an example and results can vary significantly from above. It was only used as an example to show what ROI is. So now we will move on to factors to look out for when deciding what you should use for your own web pages.

The first factor in deciding what would work better for you is to determine whether your time or your money is more valuable to you. PPC generally works quicker but costs more as SEO takes longer amount of time to implement and maintain into the future but is more cost efficient. In most cases you may not even need to pay for SEO. You can do cheap search engine optimization yourself if you are taught how to do it the right way. If you value your time more PPC would be your best bet, but you can also implement some SEO tactics in addition to PPC, you do not have to stick to just one method. If money is more valuable to you I would definitely go the SEO route and spend my time on optimizing your site and getting backlinks to your site.

The next thing you should make note of is that if you are unfamiliar with PPC it is very easy too lose a lot of money. So I would recommend that if you are not familiar with PPC then stick to SEO.

This is far from an all out guide to SEO or PPC but it gives you some factors as to what to choose in order to better serve your business. Ultimately the factors are money and time. If you value your time more than your money then go with PPC, but if you value your money more than your time then go with SEO. You can find out some really cheap search engine optimization tactics by clicking on the previous link.

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