SEO vs PPC: Which Should Your Small Business Invest In First?
This question comes up in virtually every strategy conversation I have with small business owners. They know they need to be visible on Google. They’ve heard SEO is important. They’ve heard Google Ads can get quick results. But their budget isn’t unlimited, so they need to choose.
The honest answer: it depends on your situation. I know that’s frustrating, but anyone who gives you a blanket answer without understanding your business is selling you something.
What I can do is give you a framework for making the right decision for your business. Let’s break it down.
Understanding the Difference
Before we compare, let’s be precise about what we’re talking about:
SEO (Search Engine Optimisation) is the process of earning visibility in Google’s organic (unpaid) search results. You optimise your website, create content, build authority, and over time, Google rewards you with free clicks.
PPC (Pay-Per-Click) means paying for visibility. You bid on keywords, write ads, and pay every time someone clicks. Google Ads is the most common platform, but it also includes Bing Ads and paid social.
The core trade-off:
- SEO = slower to start, compounds over time, “free” clicks once ranking
- PPC = instant visibility, stops the moment you stop paying, predictable cost per click
When to Start with PPC
PPC should be your first investment when:
You Need Leads Now
If your pipeline is empty and you need enquiries this month, SEO won’t help. A properly structured Google Ads campaign can generate leads within days of launching. If cash flow depends on short-term results, start with PPC.
You’re Testing a New Market or Offer
Not sure if there’s demand for your new service? PPC lets you test quickly. Run ads for 4-6 weeks, spend £500-£1,000, and you’ll know whether people are searching for what you offer and whether they’ll convert. That’s cheaper and faster than building an SEO strategy around an unproven offer.
You Have a High-Value Product or Service
If your average customer is worth £5,000+, paying £20-£50 per click makes sense even with modest conversion rates. B2B services, professional services, and high-value trades often get excellent ROI from PPC because the lifetime value of a customer justifies the acquisition cost.
Your Competitors Already Dominate Organic Search
Some industries have organic results completely locked up by established players. If you’re a new accountancy firm competing against firms that have been building SEO for a decade, it could take years to crack page one organically. PPC lets you appear above them immediately.
When to Start with SEO
SEO should be your first investment when:
You’re Playing the Long Game
If your business is stable and you’re building for the future, SEO is almost always the better investment over time. Organic traffic compounds — every piece of content you create, every link you earn, and every page you optimise builds on what came before. After 12-18 months of consistent SEO, your cost per lead from organic is typically a fraction of PPC.
Your Market Has Clear Search Demand
If people are actively searching Google for what you do — and you can see this in keyword research tools — SEO is a goldmine. Unlike PPC, where you pay for every click forever, ranking organically means free traffic that grows over time.
You’re in a Local Market
Local SEO is one of the most cost-effective marketing channels available to small businesses. If you serve a specific geographic area, getting your Google Business Profile optimised and earning local rankings can deliver a steady stream of enquiries without paying for a single click.
Your Industry Has Expensive Clicks
In some sectors — legal, finance, insurance, SaaS — Google Ads clicks cost £15-£50+ each. If you’re paying £30 per click and converting at 3%, that’s £1,000 per lead from PPC. SEO becomes essential to bring that cost down over time.
The Real Answer: Both (But Sequenced)
Here’s what I recommend to most of our clients at Black Sheep Marketing:
Phase 1: Start with PPC (Month 1-3)
- Launch a focused Google Ads campaign targeting your most valuable keywords
- Set a modest daily budget (£20-£50/day depending on your market)
- Use the data to learn which keywords convert, which don’t, and what your cost per lead looks like
- This generates leads immediately while you build your organic foundation
Phase 2: Add SEO (Month 2 onwards)
- While PPC is running, begin your SEO work: website optimisation, content creation, Google Business Profile, technical fixes
- Use PPC keyword data to inform your SEO strategy — you already know which terms convert
- Don’t expect SEO results for 3-6 months — that’s normal
Phase 3: Rebalance (Month 6-12)
- As organic rankings improve, you’ll start getting “free” traffic for keywords you’ve been paying for
- Gradually reduce PPC spend on keywords where you’re ranking organically
- Redirect that PPC budget to new keywords or keep it for competitive terms
- Your blended cost per lead drops significantly
Phase 4: Optimise (Ongoing)
- Use PPC for competitive keywords, new markets, and promotions
- Let SEO handle your core terms where you’ve established rankings
- The combination of both channels is always more effective than either alone
How to Budget for Each
Here’s a realistic starting point for a UK small business:
PPC Budget:
- Minimum viable: £500/month ad spend + management
- Comfortable: £1,000-£2,000/month ad spend
- Don’t go below £500/month — you won’t get enough data to optimise
SEO Budget:
- DIY: Your time (10-15 hours/month minimum)
- Freelancer: £500-£1,000/month
- Agency: £1,000-£3,000/month
- Don’t expect results in under 3 months — if someone promises page 1 in 30 days, walk away
Combined starting point: £1,500-£2,500/month total for both channels is realistic for most SMEs. If that’s too much right now, pick one based on the criteria above and add the other when budget allows.
Red Flags to Watch For
Whether you choose SEO, PPC, or both, watch for these warning signs:
PPC Red Flags
- No conversion tracking — If you can’t measure leads, you can’t measure ROI
- Broad match everything — Your budget will evaporate on irrelevant searches
- No negative keywords — You’re paying for clicks from people who’ll never buy
- Set and forget — PPC needs weekly optimisation, not monthly check-ins
- No landing page strategy — Sending ads to your homepage wastes money
SEO Red Flags
- Guaranteed rankings — Nobody can guarantee Google rankings. Nobody.
- Buying links — This will get you penalised. Legitimate link building takes effort.
- Keyword stuffing — If your SEO provider is cramming keywords into every sentence, find a new one
- No reporting — If you can’t see what’s being done and what’s improving, you’re flying blind
- Huge upfront payment — SEO is ongoing work, not a one-off project
Measuring Success: What to Track
Whatever you choose, you need to measure your ROI properly:
For PPC:
- Cost per lead / cost per acquisition
- Conversion rate by campaign and keyword
- ROAS (return on ad spend)
- Quality Score (Google Ads)
- Search impression share
For SEO:
- Organic traffic (Google Analytics)
- Keyword rankings for target terms
- Organic leads / conversions
- Domain authority over time
- Local pack appearances (if relevant)
For both:
- Total cost per lead (blended)
- Revenue generated vs. total marketing spend
- Trend over time — are costs going down as SEO kicks in?
The Bottom Line
If you need leads today: Start with PPC. If you’re building for tomorrow: Start with SEO. If you can afford both: Do both, sequenced properly.
The worst thing you can do is nothing. Every month without search visibility is a month of leads going to your competitors.
Not Sure Where to Start?
At Black Sheep Marketing, we help small businesses build search strategies that actually make money — not vanity metrics, not jargon-filled reports, just more leads at a lower cost.
Whether you need a Google Ads campaign, an SEO strategy, or a plan that combines both, we’ll give you an honest recommendation based on your business, your budget, and your goals.
