The argument is still raging between PPC and SEO advocates about which one is the better method to get traffic to your web site. So for the website owner, the burning question is: Should I spend money on PPC or optimize my website for SEO?

According to Alex Mindlin, a reporter for the New York Times, a recent study by Engine Ready, a San Diego internet search marketing company, analyzed 18.7 million visits to Web sites run by 27 of the company’s roughly 500 clients over a two year period. The results: Visitors who clicked on paid links were 17 percent more likely to buy something, and they spent about 18 percent more on each order then people who clicked on the organic (SEO) listings.

Not surprising since the direct response ad copy and the brand names used by PPC ads pre-qualifies traffic so the visitor is already in a buying mood which makes the sale easier.

The study determined that the average value to a retail website of a visitor who comes through an organic search result is $1.35 each. The average value to a retail website of a visitor who comes through a PPC ad is $1.91 each.

So What Does All This Mean?

The study results confirm that all methods of getting traffic to your web site work. Let’s look at some of the pros and cons of each method.

Pros of Using PPC

  • Immediate Traffic - you can get traffic within minutes of publishing your ad.
  • Targeted Traffic – proper keyword selection for your ads guarantees that the visitor has been pre-qualified and therefore ready to buy.
  • Promotions - nothing can beat PPC for special sale promotions because of the speed of getting the ad out to the public
  • Measurements – the tools provided by the search engines to measure your ROI make determining whether you are making or losing money easy
  • Testing – PPC makes split testing ads child’s play so you can use the ads that convert best
  • Web Design – PPC does not require you to makes changes to your web site to get good search engine rankings

Cons of Using PPC

  • Cost – you have to pay for each click that comes to your website if you want to receive traffic.
  • Expensive – choosing keywords that are two general can send you to the poorhouse. Also, the most profitable keywords command top dollar.
  • Less Popular than Organic Search – people still prefer the organic search results. So even if you are first in the PPC listing you will not get anywhere near the number of click throughs as you would if you were listed first in the organic search results.
  • Click Fraud – some dishonest publishers and sometimes your competitors will intentionally click on your ads to make you lose money.

Pros of SEO

  • More Traffic - ranking on the first page for a search term organically will drive much more traffic than paying to be number one in PPC
  • Cost - SEO has a high initial cost but once the basic site optimization is completed, the recurring costs are minimal but the traffic keeps on coming sometimes for years without you having to do more than minor maintenance.
  • Cheaper In The Long Run - your rate of return and the average value of each visitor will increase over time.
  • Click Fraud - since there is no payment for clicks, click fraud has no effect.

Cons of SEO

  • Costs - startup costs can be significant.
  • Longer Term Traffic – it may take a while (up to three months) but once you start getting traffic it can continue indefinitely
  • Web Design – SEO often requires that you change the architecture and layout of your web page, add more content and improve the keyword frequency to get a good ranking. All of which can cost a lot of money.

So which is better – PPC or SEO?

It depends on what it is that you are trying to accomplish with your website. Both methods work and each has it advantages and disadvantages. The smart internet marketer will use both methods to maximize profits.

Use PPC to drive immediate traffic for new products, new websites and special promotions. Use SEO to get long term traffic to your website. Once the organic traffic reaches an acceptable level you can ease off on the PPC for regular traffic and use it for special promotions and new products. After all you want to maximize profits by minimizing costs.

You Might Also Be Interested In Reading:

  1. PPC Marketing 101
  2. Advanced SEO Services

Filed under: PPC

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