SEO or Google Ads: how to allocate your budget

How SEO differs from Google Ads, when each channel makes sense, how to split the budget and when to expect leads. A practical comparison from Marketing MIX.

August

2020

SEO or Google Ads: how to allocate your budget

Google Ads can bring enquiries within days of launch, for as long as you pay for clicks. SEO builds more slowly, with the first noticeable results usually after about 3 months, but organic traffic stays when you pause. Most businesses need both.

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In short

If you need enquiries this month or want to test a new product, start with Google Ads.
If you need a steady flow of enquiries for the year ahead, start SEO now.
Ads launch a few working days after we get access; SEO shows its first noticeable results after about 3 months.
Compare both channels by cost per qualified lead and per sale; clicks and rankings are secondary.
Google AdWords and Google Ads are the same system; the name changed in 2018.

SEO and Google Ads serve different acquisition needs. Your choice depends on demand, the condition of your site, how soon you need to test an offer and the acquisition cost your margins can support.

How does SEO differ from Google Ads?

Criterion	SEO	Google Ads
When leads arrive	First noticeable results after about 3 months	A few working days after launch
What you pay for	Work on the site: technical, content, links	Clicks or conversions at auction plus management
After a pause	Rankings decline gradually	Ads stop showing immediately
Where you appear	Organic results, Google Maps, AI answers	Ad slots, Shopping, YouTube, Maps
What the site needs	Complete service pages, speed, structure	A landing page and conversion tracking

A note on searches for "AdWords SEO". Google AdWords was renamed Google Ads in July 2018. Advertising spend does not buy organic rankings; the two work independently.

When to consider SEO

SEO covers search accessibility, site structure and useful content. It supports service pages, catalogues and answers to customer questions. Budget for content, technical fixes and updates. The timing and volume of organic traffic cannot be promised in advance.

SEO pays off where demand is steady and customers take time to decide: legal services, healthcare, B2B, real estate and stores with a large catalogue. In 2026 it also covers AI answers in Google (AI Overviews), ChatGPT and Perplexity. Pages with direct answers, facts and schema.org markup appear in those answers more often.

When to consider Google Ads

Google Ads search campaigns can place ads alongside search results for related queries. Prepare the landing page, enquiry tracking, geographic settings and budget controls before launch. Delivery depends on settings, ad review and auction conditions.

Choose a specific product for the test and define the evidence needed to continue. Connect enquiries to subsequent sales, accounting for repeat contacts and cancellations.

Ads suit a new website, seasonal demand, promotions and urgent services. Stores use Performance Max with a Merchant Center feed. Service businesses use search campaigns on exact queries with negative keywords.

How should you split the budget between SEO and ads?

There is no universal ratio. A workable plan for a new site: in the first months most of the budget goes to ads while SEO runs in parallel. As organic search starts bringing enquiries for some queries, lower the ad bids on them. For a mature site with rankings, ads cover competitive and seasonal queries that organic results do not.

Base the decision on data: GA4, conversion import into Google Ads, and call and lead tracking in a CRM such as KeyCRM, HubSpot or Pipedrive.

Use both channels together

Identify queries that bring suitable customers.
Improve pages used by visitors from both channels.
Separate branded and non-branded queries when reviewing results.
Compare advertising, management and SEO costs with sales margins.
Move high-converting ad queries into your SEO page plan.

SEO also requires ongoing work. Start with measurable objectives and adjust the budget allocation using verified results.

An example from our work

For the real estate agency Premium Estate we built the website and ran SEO: a query pool, content, and title and metadata optimisation. We run ad campaigns as part of our Google Ads management service.

Frequently asked questions

What is better for a new website: SEO or PPC?

Google Ads brings enquiries sooner for a new site: campaigns launch a few working days after access is granted. Start SEO in parallel; the first noticeable results usually appear after about 3 months.

Are AdWords and Google Ads different systems?

They are the same system. Google AdWords was renamed Google Ads in July 2018.

Do Google Ads improve SEO rankings?

Paid ads have no direct effect on organic rankings. Indirectly, ads reveal high-converting queries you can build pages for.

Can I switch off ads once the site ranks at the top?

You can lower bids on queries where the site ranks steadily near the top and brings enquiries. Branded and competitive queries often stay in ads.

How do I know which channel works better?

Set up GA4 and record the lead source in your CRM. Compare the cost per qualified lead and per sale for each channel over comparable periods.