The following message was entered in a previous blog post. “I’m very interested in finding opinions on 1) whether AdWords is becoming too expensive and 2) whether optimization is the only way to go.”
Short Answer: No and No. or… Yes and Yes. The right answer depends upon your situation.
Long Answer: (First, review recent posts: Long Tail Keywords & SEO + Social plus there are many PPC & SEO posts in the September / October / November time frame archives – see the archive links in the right column of this blog)
For most search marketing situations SEO and PPC are complimentary, not either/or choices. PPC might be the only choice (SEO for new websites can take months; PPC is immediate) and other times when PPC is impractical (if your ad cost to product price ratio is bad, your ROI will suck with PPC).
As to the economics: SEO and PPC cost factors include:
- SEO requires a budget for the initial optimization setup, landing page design, and for ongoing reports & maintenance. SEO is becoming more and more complex and competitive and thus more costly to accomplish. PPC generally requires a lower budget for setup, reporting, and maintenance, but also needs landing page design plus an ongoing ad budget is required.
- Because of user behavior, about 80% of search traffic is generated by organic listings (via SEO) and 20% from paid listing ads (via PPC). SEO only works if you can get a web page listed on page #1 for a keyword of value to you – not often easy to do. PPC can get your ad with a website link on page #1 for any number of keywords. SEO difficulty and PPC keyword auction prices determine the economics.
- SEO and PPC can be locally or nationally targeted. National efforts are more costly because it involves more competition for organic listings and more bidders in the keyword PPC auction. Local SEO marketing can be very cost effective using geo-targeted keywords and Google Maps. Local search is a great replacement for expensive Yellow Page ads.
- You can go after short tail or long tail keywords. Generally, short tail keywords require a large budget for page #1 organic listings. And short tail keywords can demand a very high price in the PPC auction, but PPC may be the only way to get to page #1 because of SEO competiton for a short tail keyword.
In summary, a mix of SEO and PPC is the right approach based on timing, product pricing, strategy considerations, and the ‘keyword economics’:
- Lower cost keywords = niche market, low competition keywords / long tail keywords/ local marketing.
- Higher cost keywords = mass market, highly competitive keywords / short tail keywords / national marketing.
BONUS INFO: Google continually changes the SEO playing field.
- About 300 small tweaks to search algorithms are made daily. Major search ranking method revisions are done periodically.
- Last year Google made local search results automatic for everyone using your PCs IP address without the need for a geo-targeted keyword phrase entry.
- In December 2009 Google released behavioral ‘personal search’ for people logged into their Google account to serve up individually tailored results.
- This week Google released a cookie based personal search method for all users. Now two people in the same room using their individual computers are likely to get served up different search results.
- Live search results plus social media results for keywords are changing the look of page #1 listings by crowding out web page listings.
So… No, AdWords are not becoming too expensive and no, optimization is not the only way to go. Or… Yes AdWords can be expensive and yes optimization can be the only way to go.
Still confused on which search marketing path to take? Contact me, and let me be your search marketing guide.

















