SEO Vs PPC | How SEO outperforms PPC in Long Term Growth

SEO Vs PPC | How SEO outperforms PPC in Long Term Growth

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    This is a tale of two young graduates of Business Studies and friends obsessed with starting their own businesses. While other students in their class focused on their studies, they were preoccupied with learning real-time skills and perfecting them and creating the foundations for their business dreams.

    short story on seo vs ppc

    On the day of their graduation, they vowed with each other to meet after 9 years after they have truly found success and become their own boss.

    part 1

    This is a tale of Mathew and John, and how they would grow their business in two separate approaches in an attempt to fulfil their dreams.

    Mathew | The Aggressive Bidder

    Since childhood Mathew was always an overachiever. Going with whatever works are kind of what is in-built in Mathews Blood. 

    Mathew always wanted quick results. That’s why while other people studied books, Mathew learned PPC Marketing, working as a freelancer and for different personal affiliate projects.

    Loaded with cash from previous profits and generous aid from his family, he quickly set up his website and invested in a comprehensive PPC campaign.

    The Starting

    Armed with Experience and a monthly budget of 5000$, he quickly gained impressive sales figures, growing his sales figures by 2000% in the first two years.

    Working on a Home Décor niche with an ecommerce website, profits grew remarkably in the first few months. By the end of the second year, his monthly ad expenditure grew to 10,000$.

    Growth and the Aftermath

    But as years passed on, he quickly realized his profits stagnated. Worse, he realized that CPC rises every time, partly due to inflation, increasing competition, and increased inventory and employee management costs.

    Since he didn’t optimize his website for SEO and primarily relied on direct sales, his Customer Acquisition Cost continued to increase, further undercutting his profit.

    What Mathew Wanted:

    • To maintain an overall growth of 80% each year.
    • To expand into other cities and host operations in multiple locations in the US.
    • To diversify his services to other related sectors and lead the home décor industry.

    What Mathew Achieved:

    • The growth rate in revenue declined to -20% comparing the 8th and 9th years.
    • Mathew was able to expand to 3 locations; however, he had to cut down to 2 locations due to increased overheads.
    • Mathew invested in SEO, but its slow progress irritated him, so he jumped with multiple agencies.

    Mathew’s Mistake

    • Sticking to one Idea and not diversifying his efforts and investments.
    • Lack of foresight regarding future growth of business and not taking action.
    • Not to adopt SEO and PPC efforts in synergy with one another.
    • By the end of 10 years, he still struggled to ensure steady growth in his business.
    part 3

    John | The All is Well Guy

    John was always a “Slow and Steady wins the race” type of Guy since college. He had a very clear vision of how he would grow his business step by step. He was from a humble background but had great dreams.

    part 4

    Being so organized and with a tight budget, he learned SEO and worked on multiple projects to perfect his skill. After developing his website, he hired a small team for SEO.

    John’s Struggle in 1st Year

    For the first six months, his small company barely made any profit with some sales through referrals and other methods. Many of his teammates didn’t think the business would survive.

    But John was optimistic. He continuously tracked his SEO metrics month by month and ensured growth. Optimizing his landing pages, product pages, pushing out content, and constantly optimizing his keyword targeting. He even hired ThatWare, an advanced SEO agency, to keep up with new trends in SEO and changing Google algorithms. 

    part 5

    And Finally, this happened

    part 6

    Doing SEO for nearly one year, his website wasn’t even receiving 1000 traffic per month as of November 2021. Come February; his website traffic grew 7X. Suddenly all his efforts made sense, and his team found renewed hope.

    Revival and Growth

    With consistent organic traffic, his sales skyrocketed. His website started ranking for terms whenever customers searched for them without paying Google. This drastically reduced his customer acquisition cost.

    By the end of the 2nd Year, his revenues quadrupled further. Finally, he outsourced his entire SEO activities to ThatWare, thus fixing his SEO expenditure while further making scope for unlimited growth.

    As time went on, his customer base continued to grow, allowing him to expand and diversify in other areas. His brand name dominated not only in Google but in the streets as well.

    What John Wanted:

    • Create a successful business and retire early.
    • Earn enough by age 30 so he could work on social upliftment.

    What John Achieved:

    • Retired after 14 years of founding the company.
    • Earned his name among top businessmen.
    • Dedicated his remaining life to social work.
    • Took to teaching and inspired a new generation of entrepreneurs
    • At the age of 35, he was happy.

    How SEO is more suitable than PPC for long-term business growth?

    The cost of PPC Traffic rises every year

    CPC or cost per click is bound to rise every year no matter how many optimizations are applied to your PPC account or the ads. These are mainly due to the following reason:

    • Inflation
    • Platform Competition on Google and Facebook
    • Increased Employee and Inventory Management Costs.

    Hence every year profits from ad campaigns decline given the volume of sales remains the same for the same campaign. Hence PPC Strategies need to be revised every year, diversifying into other platforms and adopting other strategies for customer acquisition. Mathews confidence in Google and Facebook blinded him from other opportunities.

    PPC Campaign requires Continuous Investment

    Visitor flow stops as soon as the campaign ends. Hence to reap profits one has to invest continuously which makes PPC campaigns expensive and difficult to maintain a steady CAC or customer acquisition cost.

    SEO Organic Traffic takes time to build but grows continuously

    Perhaps the best aspect of SEO. It is slow at first, might take 3-6 months to get any organic traffic. But with a steady and planned approach, your traffic grows continuously. After attaining some significant keyword rankings, you continue to get website visitors at the same rate even if you stop all SEO activities. This makes SEO highly profitable in long term.

    80% of all clicks occur on organic search results and not on ads

    As digital media get more saturated with Ads, people become increasingly inert to ads, something called advertising blindness. It is a situation when the brain simply disregards the various advertisements as noise and focuses on what’s important.

    This can be seen in the above number. Such a shift in behavior eventually increases CPC.

    Unlike PPC, SEO Cost is fixed, provided you are hiring an Agency like ThatWare

     Since the cost of SEO resources can be fixated by building an in-house team or hiring an SEO agency like ThatWare, the Customer Acquisition Cost declines over time, thus creating scope for unlimited growth.

    How SEO is more suitable than PPC for long-term business growth?

    When it comes to digital marketing strategies, businesses often find themselves debating between SEO (Search Engine Optimization) and PPC (Pay-Per-Click). Both have their unique advantages and roles in driving traffic and generating leads. However, when the focus shifts to long-term business growth, SEO emerges as the more sustainable and cost-effective solution. While PPC can provide immediate results, it comes with ongoing expenses and diminishing returns over time. On the other hand, SEO may take longer to show results, but its benefits compound, offering consistent traffic and reduced costs in the long run.

    The cost of PPC Traffic rises every year

    One of the most significant challenges with PPC is the increasing cost per click (CPC), which rises every year due to several factors:

    1. Inflation

    As the overall cost of goods and services increases due to inflation, businesses allocate higher budgets to advertising campaigns. This leads to increased bids on platforms like Google Ads and Facebook Ads, driving up CPC rates across all industries.

    2. Platform Competition

    The competition on platforms like Google and Facebook is fiercer than ever. Businesses from every niche are competing for the same ad space, leading to a bidding war that drives up costs. As more businesses embrace digital marketing, this trend is expected to continue, making PPC campaigns even more expensive over time.

    3. Rising Operational Costs

    Managing a PPC campaign requires skilled professionals and tools, which come at a cost. Additionally, as employee salaries and operational expenses rise, businesses are forced to allocate higher budgets to maintain their campaigns.

    The Impact

    Due to these factors, the profitability of PPC campaigns diminishes each year unless businesses drastically increase their budgets or find new customer acquisition strategies. Maintaining a steady Customer Acquisition Cost (CAC) becomes a daunting task, particularly for small and medium-sized enterprises (SMEs).

    Hence every year profits from ad campaigns decline given the volume of sales remains the same for the same campaign. Hence PPC Strategies need to be revised every year, diversifying into other platforms and adopting other strategies for customer acquisition. Mathew’s confidence in Google and Facebook blinded him from other opportunities.

    The Continuous Investment Needed for PPC Campaigns

    A major drawback of PPC is its reliance on continuous investment. Once you stop funding a PPC campaign, the traffic stops almost immediately. This creates a dependency that makes it difficult to achieve long-term growth without a significant financial commitment.

    Unpredictable Returns

    PPC campaigns are highly volatile, with performance metrics fluctuating based on factors like competition, market trends, and ad quality scores. Even with a well-optimized campaign, external factors can impact your ROI, leaving little room for predictability.

    No Residual Benefits

    Unlike SEO, where efforts can continue to yield results long after the initial work is done, PPC offers no residual value. Once a campaign ends, there is no lasting benefit in terms of traffic, leads, or rankings.

    Increasing Dependence on Multiple Platforms

    To maintain ROI, businesses often diversify their PPC strategies across multiple platforms like Google Ads, Facebook Ads, and Instagram Ads. This not only increases costs but also complicates campaign management, making it harder to achieve a unified marketing strategy.

    SEO: A Long-Term Solution for Business Growth

    In contrast to PPC, SEO is a long-term investment that delivers sustainable results. Although it takes time to build, its benefits compound over time, providing a consistent flow of organic traffic without ongoing ad spend.

    The Power of Organic Traffic

    Organic traffic is the lifeblood of a successful website. Unlike paid traffic, it doesn’t stop when you stop investing in it. With a strategic approach to SEO, your website can rank for valuable keywords, attracting visitors continuously.

    Growth Over Time

    While SEO typically takes 3-6 months to show significant results, the payoff is well worth the wait. Once your website achieves strong rankings, it maintains its position with minimal effort, driving traffic and leads for months or even years.

    Cost-Effectiveness

    The cost of SEO activities can be fixed, especially if you hire a professional agency like ThatWare LLP. Over time, as your rankings improve and your organic traffic grows, the Customer Acquisition Cost (CAC) decreases, offering unlimited growth potential.

    Why SEO Is Sustainable

    80% of All Clicks Happen on Organic Results

    As digital platforms become saturated with ads, users have developed ad blindness—the tendency to ignore paid advertisements. Instead, they focus on organic search results, which are perceived as more trustworthy and relevant. This shift in behavior has led to a staggering 80% of all clicks occurring on organic results, underscoring the importance of a strong SEO strategy.

    Adaptability to Algorithm Changes

    SEO allows businesses to adapt to changes in search engine algorithms. By focusing on quality content, user experience, and technical optimization, websites can maintain their rankings even as search engines evolve. This adaptability ensures long-term stability and growth.

    SEO vs. PPC: A Cost Perspective

    Fixed Costs with SEO

    SEO costs are predictable, especially when you partner with an experienced agency like ThatWare LLP. These costs include activities like keyword research, content creation, and on-page optimization. Once these foundational elements are in place, the ongoing costs are minimal compared to the continuous expenses of PPC campaigns.

    Rising Costs with PPC

    As mentioned earlier, PPC costs are unpredictable and tend to rise every year due to competition and operational expenses. Additionally, businesses must constantly optimize their campaigns and diversify their strategies to maintain ROI, further driving up costs.

    SEO Builds Trust and Credibility

    Another advantage of SEO is its ability to build trust and credibility. When your website ranks high in organic search results, users perceive your brand as authoritative and trustworthy. This credibility translates into higher click-through rates, better engagement, and increased conversions.

    In contrast, PPC ads often struggle to build the same level of trust, as users are aware that these are paid placements.

    Key Benefits of SEO for Long-Term Growth

    1. Sustainable Traffic

    One of the most significant advantages of SEO is its ability to generate sustainable traffic. Once your website starts ranking high for relevant keywords, organic traffic flows naturally without the need for ongoing financial investment in ads.

    Unlike PPC, where traffic halts as soon as the ad spend stops, SEO efforts continue to yield results even if you reduce or pause optimization activities. A well-optimized website can maintain its rankings for months or even years with minimal upkeep, making SEO a cost-effective solution for businesses seeking consistent visibility.

    Additionally, organic traffic tends to attract users who are genuinely interested in your products or services. This increases the likelihood of conversions, making your marketing efforts more efficient and impactful over time.

    2. Improved ROI

    Return on investment (ROI) is a critical metric for evaluating the success of any marketing strategy. While SEO requires an initial investment of time and resources, its cost-effectiveness grows over time.

    As your website climbs the search engine rankings, you’ll notice a steady increase in traffic and conversions without the need for additional spending. This declining Customer Acquisition Cost (CAC) directly impacts your bottom line, ensuring you get more value for every dollar spent.

    The compounding nature of SEO means that your earlier efforts continue to pay dividends. For example, a well-written blog post optimized for specific keywords can drive traffic for years after it’s published, offering unparalleled ROI compared to paid campaigns that require ongoing funding.

    3. Enhanced User Experience

    User experience is a cornerstone of successful SEO strategies. Search engines prioritize websites that provide fast-loading pages, mobile-friendly designs, intuitive navigation, and high-quality content. By optimizing your site for these factors, you not only improve your rankings but also create a better experience for visitors.

    A seamless user experience enhances engagement, reduces bounce rates, and encourages visitors to explore your offerings further. This not only benefits your SEO performance but also increases the likelihood of conversions, as users are more likely to trust and purchase from a site that is easy to use and visually appealing.

    Moreover, user satisfaction positively impacts your brand’s reputation, fostering customer loyalty and repeat business in the long run.

    4. Brand Awareness

    Achieving high rankings on search engine results pages (SERPs) significantly boosts brand visibility and awareness. When your website appears on the first page for relevant search terms, potential customers perceive your business as a trusted authority in your industry.

    Even if users don’t click on your site immediately, seeing your brand consistently in search results creates a lasting impression. Over time, this increased exposure enhances your brand’s recognition, making it more likely for users to choose your business when they’re ready to make a purchase.

    SEO not only helps you reach new audiences but also reinforces your brand identity, ensuring you remain top-of-mind in a competitive marketplace.

    5. Scalability

    One of the most powerful aspects of SEO is its scalability. As your business grows, your SEO strategy can evolve to target new markets, products, or services.

    For instance, you can start by focusing on local SEO to establish a strong presence in your immediate area. As your business expands, you can shift your focus to national or even international keywords, broadening your reach and tapping into new customer bases.

    Additionally, the content and backlinks you build through SEO serve as a foundation for future growth. Whether you’re adding new product pages, creating a blog, or launching an entirely new website, your existing SEO efforts provide a solid framework that can be expanded upon.

    This scalability ensures that your marketing efforts align with your business’s growth trajectory, offering limitless potential for success.

    Why Partner with ThatWare LLP for SEO Services in Ireland?

    However, SEO is not a one-size-fits-all solution; it requires tailored approaches, continuous optimization, and expert insight. This is where ThatWare LLP comes in as a trusted partner for SEO services in Ireland, helping businesses achieve sustainable growth and long-term success.

    Our team of SEO professionals combines expertise, innovation, and a results-driven mindset to create strategies that align with your business objectives. Here’s how ThatWare LLP stands out as your ideal SEO partner:

    1. Comprehensive Keyword Research to Identify High-Value Opportunities

    Keyword research is the cornerstone of any successful SEO campaign. At ThatWare LLP, we use advanced tools and techniques to conduct in-depth keyword analysis. We don’t just target high-traffic keywords; we focus on identifying high-value opportunities that drive relevant traffic and conversions.

    Our team examines your industry, competitors, and audience behavior to uncover keywords that align with your business goals. This approach ensures that your website ranks for search terms that attract potential customers genuinely interested in your products or services.

    By targeting the right keywords, we help you maximize your ROI and dominate search results in Ireland’s competitive market.

    2. On-Page and Technical Optimization to Improve Rankings and User Experience

    A strong foundation is vital for any SEO strategy, and on-page and technical optimization form the bedrock of your website’s success.

    On-Page Optimization

    We fine-tune your website’s content, meta tags, headers, and internal linking structure to ensure search engines understand your site’s relevance to targeted keywords. By optimizing these elements, we enhance your website’s visibility and encourage higher click-through rates.

    Technical SEO

    Our team addresses the technical aspects of your website, such as site speed, mobile responsiveness, crawlability, and indexation. These factors not only improve search engine rankings but also contribute to a seamless user experience.

    Search engines prioritize websites that deliver fast, user-friendly experiences. With ThatWare LLP, you can be confident that your website will perform at its best, keeping visitors engaged and search engines impressed.

    3. High-Quality Content Creation to Engage and Convert Your Audience

    Content is the backbone of SEO, and ThatWare LLP specializes in crafting high-quality, engaging content that resonates with your target audience.

    Our content strategies focus on:

    • Creating informative blogs, articles, and guides that establish your authority in your industry.
    • Developing compelling product and service descriptions that drive conversions.
    • Producing shareable content to boost your online presence and attract backlinks.

    By integrating keywords seamlessly into your content, we ensure that your website not only ranks well but also provides value to visitors, increasing engagement and trust.

    4. Detailed Reporting and Analytics to Track Progress and Refine Strategies

    At ThatWare LLP, transparency is at the heart of our services. We provide detailed reporting and analytics to keep you informed about the progress of your SEO campaign.

    Our reports include key performance metrics like:

    • Organic traffic growth
    • Keyword rankings
    • Conversion rates
    • Bounce rates and user behavior

    These insights help us measure the effectiveness of our strategies and identify areas for improvement. By continuously refining our approach based on data, we ensure your SEO campaign remains aligned with your evolving business goals.

    5. Proven SEO Techniques for Sustainable Growth

    Our strategies are not about quick fixes or temporary gains. At ThatWare LLP, we focus on building a strong SEO foundation that supports sustainable growth.

    By combining cutting-edge techniques with industry best practices, we help your business achieve long-term success in search engine rankings. Whether you’re targeting local customers in Ireland or aiming for a global audience, our customized strategies position your brand as a leader in your niche.

    Why Choose ThatWare LLP?

    • Experience and Expertise: Our team has extensive experience in delivering tailored SEO solutions across various industries.
    • Customized Strategies: We design SEO campaigns that align with your unique business goals and market dynamics.
    • Commitment to Results: At ThatWare LLP, your success is our priority. We focus on delivering measurable results that drive growth.
    • End-to-End Support: From initial keyword research to ongoing optimization, we provide comprehensive support throughout your SEO journey.

    Conclusion 

    part 7

    On a Cold Windy Night… As John was driving home, he met Mathews while taking his dinner package from a nearby restaurant.

    The two of them met coincidentally exactly after 10 years.

    As both of them, cherished their memories and reminisced on how far they have come, a curious Mathews asked John,

    How to handle situations that made him feel low and when your people’s confidence begins to shake?

    A smiling John answered:

    “Keep calm, Take a deep breadth and say All is Well.”


    Tuhin Banik

    Thatware | Founder & CEO

    Tuhin is recognized across the globe for his vision to revolutionize digital transformation industry with the help of cutting-edge technology. He won bronze for India at the Stevie Awards USA as well as winning the India Business Awards, India Technology Award, Top 100 influential tech leaders from Analytics Insights, Clutch Global Front runner in digital marketing, founder of the fastest growing company in Asia by The CEO Magazine and is a TEDx speaker and BrightonSEO speaker.


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