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ROI on Google Ads vs SEO – Why businesses pay more for less efficiency

Most companies are willing to pay twice the price for a lead or customer if they feel they can control the outcome.

This is my experience from 12 years in Google marketing.

Here’s an example from my own business Morningscore

  • A new customer from SEO costs us $100.
  • A new customer from Google Ads is $250.

Both are healthy numbers.

However, most businesspeople looking at this get more excited about increasing Google Ads.

My guess is it’s because they feel a sense of control and precision.

They think, “I don’t have to rely on chance. I can just turn up the spend.”

With SEO, you’re more at the mercy of Google and its algorithm updates. You can’t forecast input/output as precisely.

My takeaway is that the majority prefer to pay more to reduce perceived risk.

Even when I tell them SEO has been our biggest driver of customers for 5 years running and we’ve never had a “bad year,” it doesn’t change their opinion.

And I get that. We all want to avoid sunk costs, and we love measurable results. In general, we avoid risk.

But I invite you to consider allocating some of your budget to a channel that often delivers 2x the ROI of advertising.

Calculated risk is the path to high growth.

 

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