By True Marketing on November 1, 2024
Why Organic Marketing Beats PPC for SMBs
Organic marketing is often the smarter choice for small and medium-sized businesses (SMBs) compared to paid advertising like Pay-Per-Click (PPC). Here's why:
- Cost-effective: Lower long-term costs, higher ROI (up to 800% vs 200% for PPC)
- Builds trust: 53% of consumers use search engines for research, only 8% trust ads
- Lasting results: Continues working after initial effort, unlike PPC
- Better conversion: 14.6% close rate for organic vs 1.7% for outbound leads
Quick Comparison:
Aspect | Organic Marketing | PPC |
---|---|---|
Initial Cost | Higher | Lower |
Ongoing Cost | Lower | Higher |
Trust Factor | High | Low |
Long-term ROI | Up to 800% | Around 200% |
Results Duration | Lasting | Stops when ads end |
While PPC offers quick visibility, organic marketing provides a stronger foundation for SMBs looking to grow their online presence and build customer relationships without breaking the bank.
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1. Getting Found Online Without Paying for Ads
Organic marketing is a game-changer for SMBs looking to attract customers without emptying their wallets. Here's why it works so well:
What It Costs
Organic marketing is way cheaper than paid ads in the long run. Sure, you'll spend some time and money upfront, but it's peanuts compared to running PPC campaigns forever.
Aspect | Organic Marketing | Paid Advertising |
---|---|---|
Initial Investment | Content creation, SEO tools | Ad budget, campaign setup |
Ongoing Costs | Content updates, SEO maintenance | Continuous ad spend |
Long-term ROI | Potential 400-800% | Around 200% |
The SEO market is booming. It's set to grow by nearly $10 billion in 2023, hitting $60.6 billion by year-end. That's a lot of businesses realizing SEO is worth it.
Building Trust With Customers
Here's the thing: organic marketing builds trust in a way paid ads just can't. When people find your content through search, they're more likely to see it as legit and valuable.
How do you build that trust?
- Create killer, informative content
- Show up consistently across platforms
- Talk to your customers on social media
- Showcase those glowing reviews and testimonials
Measuring Results
Organic marketing might take a bit longer to show results, but when it does, it's usually more meaningful and easier to track over time.
Keep an eye on these:
- Organic search traffic
- Keyword rankings
- Time on page
- Bounce rate
- Conversion rate from organic traffic
Most SEO campaigns take 4 to 6 months to really get going. But once they do, the benefits just keep growing.
Long-Term Results
This is where organic marketing really shines for SMBs. Unlike paid ads that stop working the second you stop paying, organic efforts keep on giving long after you've done the work.
"Organic marketing helps build trust with your audience - if you follow me on socials, you would be sick of hearing me say this by now!" - Melissa, Author
And that trust? It pays off big time:
- 53% of US consumers use search engines to research products
- The top Google result gets a 27.6% click-through rate, without spending a dime on ads
- 49% of digital marketers say organic search gives them the best ROI
In other words: organic marketing is a smart, cost-effective way for SMBs to get found online and build lasting relationships with customers.
2. Using Paid Online Ads
Paid online advertising, especially Pay-Per-Click (PPC), is a go-to choice for many SMBs. But is it worth it? Let's break it down:
What It Costs
PPC can be a money pit if you're not careful. Here's the deal:
- You'll need an ad budget and campaign setup costs to start
- Ongoing costs? They never stop as long as your ads are running
- You can set limits, but it's easy to blow through your budget
Here's a reality check: If you're bidding on a keyword that costs $14.55 per click, and your ad gets 1000 searches with a 2% click-through rate, you're shelling out $291 for just 20 clicks. Ouch!
Customer Trust Levels
Bad news: People don't trust ads much. Check this out:
- Only 8% of users buy into ad claims
- 80% of folks ignore Google-sponsored ads
- Over 70% click on organic results, not paid links
People are getting savvier. They're using ad blockers and trusting organic results more.
Measuring Success
The good news? PPC platforms give you tons of data:
- Click-through rates (CTR)
- Conversion rates
- Cost per acquisition (CPA)
- Return on ad spend (ROAS)
Want to know your ROAS? Use this: (PPC Revenue – PPC Cost) / PPC Cost
For example: If you make $1,200 from PPC but spend $600, your ROAS is 100%. Not bad, but not great either.
Short vs Long-Term Results
PPC is like a sugar rush - quick results, but it doesn't last:
- Short-term: You can get instant traffic. A local bakery might see a spike in business by targeting "bakeries near me" on Google AdWords.
- Long-term: Stop paying, and poof! Your visibility vanishes. Unlike SEO, PPC needs constant cash to keep working.
Chris Kirksey, CEO of Direction, puts it bluntly: "Google Ads can be a gamble." You might end up in a bidding war, spending big bucks for little return.
Want to make PPC work? Try these:
- Keep tweaking your keywords
- Create campaigns for different audience groups
- Use negative keywords to avoid wasting clicks
- Always be testing and improving
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What Works and What Doesn't
Let's dive into organic marketing and paid ads for SMBs. Both have their pros and cons:
Aspect | Organic Marketing | Paid Ads (PPC) |
---|---|---|
Cost | Cheaper long-term | Can get pricey |
Speed | Slow burn (3-6 months) | Instant results |
Trust | High (14.6% conversion) | Lower (10% conversion) |
Staying Power | Keeps going | Stops when you stop paying |
Scaling | Takes effort | Easy with more cash |
ROI | $1.60 per $1 spent | $2 per $1 spent |
Organic Marketing: The Good Stuff
Organic marketing is great for:
- Trust Building: People trust organic results more. That means more conversions and loyal customers.
- Budget-Friendly Growth: It's a bit of work upfront, but it keeps delivering without ongoing costs. Perfect if you're watching your wallet.
- Snowball Effect: As you grow organically, you get more visible. It's like a snowball rolling downhill, getting bigger and faster.
Organic Marketing: The Not-So-Good Stuff
But it's not all roses:
- Slow Start: It takes 3-6 months to see real results. Not great if you need eyeballs on your business ASAP.
- Constant Work: You can't just set it and forget it. You need to keep at it to stay on top.
Paid Ads: The Good Stuff
PPC ads shine in certain areas:
- Quick Wins: Need visibility now? Paid ads deliver.
- Laser Focus: You can zero in on exactly who you want to reach.
- Clear ROI: It's easy to see what's working and what's not.
Paid Ads: The Not-So-Good Stuff
But watch out for:
- Money Pit: Stop paying, and the traffic vanishes. It can drain your budget fast.
- Trust Issues: People are wary of ads. They're less likely to click or buy.
- Wasted Cash: Without careful management, you might pay for clicks that go nowhere.
"Google Ads can be a gamble. You might end up in a bidding war, spending big bucks for little return." - Chris Kirksey, CEO of Direction
For SMBs, it's all about knowing your goals, budget, and industry. Organic marketing often wins in the long run, but a mix of both can be the secret sauce for reaching customers.
Conclusion
Organic marketing wins for SMBs. Here's why:
It's cheaper in the long run
Organic marketing costs less over time. You invest upfront in content and SEO, but the payoff is huge:
Aspect | Organic Marketing | PPC |
---|---|---|
Initial Cost | Content and SEO tools | Ad budget and setup |
Ongoing Costs | Updates and maintenance | Constant ad spend |
Long-term ROI | Up to 800% | About 200% |
People trust it more
Consumers prefer organic results:
- 53% use search engines for product research
- Top organic result gets 27.6% clicks
- Only 8% trust ads
It keeps working for you
Organic efforts snowball over time:
- 93% of SEO-investing businesses see more traffic
- Organic search drives 10x more traffic than social media
It converts better
Organic marketing beats PPC for turning visitors into customers:
Industry | How much better SEO converts vs PPC |
---|---|
Financial Services | 7.3x |
Real Estate | 3.5x |
Medical Devices | 3.4x |
Legal Services | 3.4x |
Manufacturing & Distribution | 3.0x |
It builds lasting value
PPC can give quick wins, but organic marketing creates a strong foundation:
"Organic marketing helps your small business grow and last in the digital world - while building real relationships with customers." - WriteForMe
The numbers don't lie. For SMBs wanting to stretch their marketing budget and build a solid online presence, organic marketing is often the smart choice. It's not just about quick results - it's about setting up for long-term success.
FAQs
Why is organic marketing better than paid marketing?
Organic marketing often beats paid marketing for SMBs. Here's why:
1. It's cheaper in the long run
Paid ads need constant cash. Organic efforts? They build value over time without draining your wallet.
2. People trust it more
Here's a shocker: only 8% of people believe ad claims. But organic results? They're like your trusty old friend.
3. It keeps on giving
Organic marketing is the gift that keeps on giving. Unlike paid ads that die when you stop paying, organic efforts keep working long after you're done.
4. It converts better
Numbers don't lie. Organic search leads have a 14.6% close rate. Outbound leads like print ads? A measly 1.7%.
Check out this comparison:
Aspect | Organic Marketing | Paid Marketing |
---|---|---|
Initial Cost | Higher | Lower |
Ongoing Cost | Lower | Higher |
Trust Factor | High | Low |
Long-term ROI | Up to 800% | Around 200% |
What is SMB in marketing?
SMB stands for Small and Medium-sized Business. In marketing, it's all about strategies for businesses that aren't huge corporations.
Here's the breakdown:
- Small businesses: Up to 100 employees
- Medium-sized businesses: 100 to 999 employees
SMB marketing is about being smart with your money. It's mixing old-school and digital methods to compete with the big dogs.
What are the downsides of PPC?
PPC can get you quick visibility, but it's not all sunshine and rainbows. Here are the downsides:
1. It can break the bank
PPC can get pricey, fast. In some industries, you're looking at $50+ per click. Ouch.
2. Results vanish when you stop paying
It's like a faucet. Turn off the money, and the traffic stops flowing.
3. People don't trust ads
Remember that 8% trust stat? Yeah, it applies here too.
4. It needs constant babysitting
PPC campaigns need constant tweaking. It's a time-suck for busy business owners.
5. Ad blindness is real
Many people just tune out paid search results. It's like they're wearing ad-blocking glasses.
"Google Ads can be a gamble. You might end up in a bidding war, spending big bucks for little return." - Chris Kirksey, CEO of Direction
Want to make PPC work? Try these:
- Set clear goals before you start
- Track Customer Lifetime Value to see if it's worth it
- Be ready to manage your campaigns constantly
- Mix PPC with organic marketing for a balanced approach