There is an interesting conversation going on at LinkedIn in the LinkedSEO group, started with this question/statement;
88% of online search dollars are spent on paid results, even though 85% of searchers click on organic result. I am constantly bewildered at the number of online businesses that seem to waste huge money on a poor search strategy. They don’t invest in advanced SEO strategies to create organic traffic but they will spend hundreds of thousands of dollars to make the shareholders at Google happier.
The responses are what you would expect, some frustrated that this is the case, some pointing out PPC is a very easily measured investment and SEO sometimes is not.
Having worked across both for sometime I think it’s an often misused comparison, like comparing print spend to SEO. Yes PPC and SEO are both search, but the business challenges and goals for each are on many occasions different, isolated and unique to the channel. This isn’t an anti-integration statement, just basic planning and I think many are now moving to accept all media should be integrated. There is a special relationship between PPC and SEO, integrated planning can be effective, but as ‘buys’ they are as different as chalk and cheese.
It’s worth looking at ‘where’ spend comes from, and that is – marketing teams with established off-line buying patterns. And the difference between online/offline is summed up here (PDF).
The high-volume, low-dollar, high-complexity nature of Digital programs makes it the most labor-intensive medium in the advertising industry.
Not only do we plan and buy digital media, but, for search, we implement that buy as well. This is important because marketing teams are used to buying media and paying a percentage fee to cover planning and buying. So, SEO is a stand out because it isn’t a ‘buy’. Some may suggest link buying is media spend, but really it’s more of an implementation spend.
And this is important. For a marketing team a traditional media buy can look like two distinct transactions – one to pay for the media and another to pay the agency. SEO looks more like consultancy.
I guess it’s easy to see how a PPC buy looks much more similar to a traditional buy than SEO does.
Marketing teams are not used to buying ‘people’ they generally want to pay as little as possible on the planning/buying and as much as possible on the media.


