SEO vs. SEA - Which is more worthwhile? Explanation, differences & comparison

Online marketing strategies

Online marketing strategies encompass a wide range of different disciplines, including social media marketing, email marketing and content marketing, as well as search engine marketing (SEM).

‍The following diagram shows the various sub-disciplines of online marketing. It should be noted that the disciplines are not strictly separated from each other - they often overlap. For example, SEM also contains elements of content marketing.

‍An effective online marketing strategy helps companies to better reach their target group(s), increase their visibility and boost their sales.‍

Search engine marketing (SEM) plays a central role here, as it improves the visibility of a website in search engines.

‍SEM comprises two main areas: Search Engine Optimization (SEO) and Search Engine Advertising (SEA).

‍These two terms are explained in more detail below.

What is SEO?

Search engine optimization (SEO) involves measures designed to improve a website’s visibility in the organic search results of search engines like Google. The goal is to generate more qualified traffic through higher rankings.

You can find our comprehensive SEO guide here. 

‍In the end, SEO is a means to an end. It's about generating more leads and sales by increasing visibility.

‍I divide SEO into three basic categories: Technical SEO, On-Page SEO and Off-Page SEO. 

What is SEA?

Search engine advertising (SEA) refers to the paid placement of ads, also known as search ads, in the search results of search engines like Google. Companies bid on specific keywords to position their ads prominently and thus target potential customers. In this process, they pay Google a fee for each click generated (pay-per-click).

‍SEA is therefore also about increasing visibility on the one hand, and lead generation and sales promotion on the other. The two channels SEO and SEA therefore pursue the same goals.

‍How exactly does a PPC campaign work? Here is an archetypal diagram that illustrates the cycle of a pay-per-click (PPC) campaign.

1. keyword research and selection

Companies identify relevant search terms that potential customers could use to search for their products or services. These keywords form the basis for the ad placement. 

2. creation of the advertisements

Appealing and relevant ads are created based on the selected keywords. These should contain clear calls to action and address the user directly. 

3. submission of bids

Advertisers determine how much they are willing to pay per click on their ad. This bid, together with the quality factor of the ad, determines the placement in the search results. 

4. advertisement placement

If a user submits a search query that matches the selected keywords, the ad participates in an auction. The combination of bid amount and ad quality determines the position of the ad. 

5. click and payment

If a user clicks on the ad, they are redirected to the target page and the advertiser pays the specified amount per click. 

6. analysis and optimization

By continuously monitoring campaign performance, adjustments can be made to increase effectiveness and maximize return on investment (ROI).

Similarities between SEO and SEA

SEO and search engine marketing are not fundamentally different in all aspects. On the contrary, both disciplines share many similarities. The common features are explained in more detail below.

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Increasing online visibility

As already mentioned, both SEO and SEA are suitable channels for increasing your online visibility. Both channels are about placing your website and its content as prominently as possible in the search results for relevant keywords so that potential customers searching for your topics, products or services become aware of you and, in the best case scenario, buy from you instead of the competition.

At Beyondweb, we use SEO to appear as high as possible in the search results on Google and other new search engines such as Search GPT.‍

SEA, on the other hand, is used specifically for terms for which we cannot rank organically with SEO. More on this later.

Lead generation channels

Another common feature is the ability to generate leads or customer inquiries via the website with both SEO and SEA.

‍Lead generation in SEO and SEA works primarily via so-called commercial and transactional keywords.

These are terms where the user’s search intent suggests that the person entering them wants to make a purchase or submit an inquiry. Here’s an example from my industry: the keyword“SEO agency.”

‍Lead generation works as follows:

1. The potential customer enters a commercial/transactional keyword in the search engine (e.g. Google).
2. The user looks at the first 10 results and clicks on the most relevant search result.
3. The user (hopefully) lands on your website and if your website and product/service are convincing, they will buy from you or make an enquiry.

As can be seen from the process above, lead generation for both SEO and SEA requires not only a well-placed ad, but also a convincing website and product/service.

‍In my experience, a well-constructed landing page is a factor that is often underestimated in both SEO and SEA.

Focus on relevant keywords

An additional similarity is the keyword focus in SEO and SEA.

‍Both SEO and SEA are about appearing as high up as possible in the search results for relevant search terms.

‍We at Beyondweb distinguish between 4 types of keywords: informal, navigational, commercial and transactional keywords.

‍In SEA, transactional and commercial keywords are usually at the center of the campaign due to the fact that you pay for every click, because searchers have a clear intention to buy.

‍Yes, there are also SEA awareness campaigns, but such campaigns are usually very costly and alternatives such as social ads are preferred.

‍It should also be added that SEA advertising is of course not only keyword-based. Ads can also be shown in the display network (e.g. in certain apps) based on other parameters.

‍In addition, with Performance Max campaigns, Google offers an option to display ads entirely on the basis of an algorithm without having to select classic keywords. The self-learning algorithm optimizes the ads autonomously.

‍However, last year in particular there were many critical voices about these Google algorithm ads, as the results were unsatisfactory in many cases and the methodology was not transparent.

‍In contrast to SEA, SEO is not only used for commercial keywords, but also for informal and navigational keywords.

‍SEO therefore has a broader area of application at the pure keyword level than SEA.

Differences between SEO and SEA

After looking at the similarities between SEO and SEA, the differences between the two channels are outlined in the following sections.

Time horizon for results

One of the biggest differences between SEO and SEA is the intended time horizon of the two channels.‍

‍SEA makes it possible to place ads overnight and generate clicks. SEA is therefore an effective means of running short-term marketing campaigns, advertising individual events or promotions or generally testing the product-market fit of your own product or service as a start-up.

‍SEA can and is often used in the long term and for permanent campaigns. The question then is to what extent the cost-benefit ratio of such campaigns is justifiable in comparison to SEO, but more on this in the next section.‍

‍SEO, on the other hand, is a long-term marketing measure compared to SEA. Even though we have been able to get some of our clients into the top search results after just a few weeks, the majority of SEO campaigns last 6-12 months or longer.

‍The main reason why SEO takes longer than SEA is that you have to assert yourself against the existing competition. You can't just place an ad and pay a few francs more per click than the competition.

The entire website must be optimized more comprehensively than those of competitors so that Google’s algorithm ranks it higher organically. Depending on how far ahead the competition is, an SEO campaign may take longer or shorter to complete. Following an initial audit and strategy, appropriate KPIs and a timeline should be established.

Return on investment (ROI)

Both SEO and SEA can deliver a high ROI. In the long run, however, as numerous studies have shown, SEO is one of the channels with the highest ROI.‍

‍Why?

‍In the long term, SEA campaigns often result in very high costs, as every single click has to be purchased.

SEO, on the other hand, is cost-intensive at the beginning, but as soon as you reach the top search results, you get all the clicks at no additional cost. As a result, the ROI for SEO is significantly higher than for SEA.

Implementation methods and strategies

Another difference between SEO and SEA campaigns lies in their implementation. Although both channels focus on Google, they have fundamentally different methods for achieving their goals.

SEO often involves technically optimizing a website and creating more—and, above all, better—content that is optimized for specific keywords. In addition, building thematically relevant backlinks from authoritative sites is key to increasing your visibility.

‍SEA, as described above in the introduction, is primarily about creating click-maximizing ads and converting landing pages that monetize the clicks.‍

Investment models and budgeting

The two methods also differ significantly in terms of investment models and budgeting.

When planning SEA campaigns, it is important to use the budget efficiently in order to maximize the return on investment (ROI).

With SEA, investments remain constant over time for the most part. The clicks must be purchased on an ongoing basis. However, as competition increases, click prices can also rise, as Google uses a dynamic pricing model.

In general, Google has raised click prices over the past few years, regardless of the competition. As the Google Ads agency Grow my Ads revealed last year, Google increased prices by an average of about 15% between 2023 and 2024. Google has faced a lot of criticism for this. The costs of search engine advertising are rising year after year.

‍With SEO, on the other hand, a higher initial investment is usually required to see results. You need to decide whether it’s worth hiring an agency or if you’d prefer to handle SEO yourself. In most cases, however, the budget can be reduced in the medium to long term. Of course, the same applies here: if competitors suddenly start investing more in SEO, we’ll have to invest more as well, which can drive costs up.

Range and possible applications

SEO is often reduced to Google SEO, but today other platforms are also excellent for SEO.

‍The search monopoly is no longer limited to Google. Other platforms such as YouTube and TikTok have gained market share. Young people from Generation Z in particular often prefer to search via social media platforms rather than Google.‍

‍This means that, depending on the target group, the focus of SEO shifts to other platforms such as YouTube, TikTok, TripAdvisor and Booking. All platforms with a search function use algorithms. You can optimize your own company entry for these algorithms or, in other words, do SEO.

So SEO doesn't necessarily have to be limited to Google. Of course, it's also worth noting that Google currently still accounts for 90% (as of 2024, Statcounter) of global search volume.

‍Google SEO is and will probably remain the most important form of SEO in the foreseeable future. Nevertheless, it is also worth looking to the left and right.

‍SEA can be operated on fewer platforms compared to SEO. Traditional search advertising is available on Google and Bing.

‍Google also offers the option of advertising beyond the search engine itself via the display network and partner websites and apps. This allows you to reach additional target groups.‍

Measurability and key performance indicators (KPIs)

SEO results are often long-term and require continuous monitoring. The effects of optimizations do not become apparent immediately, but over weeks or months. Regular analysis is therefore necessary in order to recognize progress.

‍The following KPIs are often used to measure the success of SEO campaigns. In my experience, it makes sense not to set just one of the following KPI parameters, but to measure several parameters per campaign.‍

Frequently used SEO KPIs:

• Organic traffic: Number of visitors who reach the website via unpaid search results.
• Keyword rankings: Positioning of the website for relevant search terms.
• Conversion rate: Percentage of visitors who perform a desired action, e.g. make a purchase.
• Bounce rate: Percentage of visitors who leave the page without interacting with it.
• Increase in sales (for e-commerce): Sales figures are not always perfectly measurable and can also be influenced by factors other than SEO. Nevertheless, they can be used as an indicator for the success of an SEO campaign.

‍Unlike SEO, SEA delivers immediate results that can be monitored in real time. Ad campaigns provide detailed data that allows for quick adjustment and optimization.

‍The following KPIs are often used to measure the success of SEO campaigns.‍

Frequently used SEA KPIs:

• Click-through rate (CTR): Percentage of users who click on the ad.
• Cost per click (CPC): Average cost per click on the ad.
• Conversion rate: Percentage of clicks that lead to a desired action.
• Return on Ad Spend (ROAS): Sales in relation to advertising expenditure.

SEO offers many advantages, but also a few disadvantages. Below is a compact list of all the advantages and disadvantages so that you can quickly decide whether SEO is the right marketing channel for your company.

Advantages and disadvantages of SEA

The following overview table provides a compact list of all the advantages and disadvantages of SEA so that you can quickly decide whether SEA is the right marketing channel for your company.

Which is more worthwhile? SEO or SEA?

If you want to reduce this question to the bare figures from numerous studies, you can say. SEA is more profitable in the short term, but SEO is the much more profitable channel in the long term.

‍Why?

‍You can see this in the following graphic.

Comparison table SEO vs. SEA

Here you can see SEO and SEA in direct comparison in the following table.

What should you focus on - SEO or SEA? My recommendations

There is no one-size-fits-all answer to the question of what pays off more.

‍Rather, it depends on the relevant business context and objectives that determine which channel you should use.

Scenario 1: Long-term goals and sufficient cash flow = SEO

If you can easily afford to wait 6-12 months for results, then go for SEO. You will build up sustainable organic traffic and have a much higher return on investment (ROI) in the medium to long term than with SEA.

Scenario 2: Short-term goals and limited budget = SEA

Use SEA to gain immediate visibility with a limited budget, for example for product launches, events or time-limited discount campaigns.‍

Scenario 3: Short-term & long-term goals and no budget restrictions = SEO + SEA

An integrated use of SEO and SEA can be useful to achieve both short-term and long-term goals. Insights gained through SEA can also optimize the SEO strategy.

Synergies between SEO and SEA

Until now, I have mainly presented SEO and SEA as competing measures. This is also the main focus of this article, as few companies have the need and budget to fully exploit the potential of both channels.

‍For companies thinking about managing SEO and SEA in parallel, here are some of my insights into how the channels can positively influence each other and create synergies.

How SEO measures have a positive impact on SEA

Keyword optimization: By analyzing organic search queries, you can identify keywords that already rank well without paid advertising. You can use these findings to target your SEA campaigns at these keywords where there is no chance of ranking organically.

Improve the quality factor: A technically optimized website with high-quality content automatically leads to a better user experience. Google rates this positively, which increases the quality factor of your Google ads. A higher quality score can lead to lower click prices and better ad positions.

Landing page optimization: SEO measures that optimize the page structure, call-to-action (CTAs) and texts in a user-centric way also have a positive effect on the performance of your SEA campaigns. This is because well-optimized landing pages reduce the bounce rate and increase the conversion rate.

Use of SEA data to optimize SEO strategies

Of course, the whole game also works in reverse. By analyzing SEA campaigns, you can also gain valuable insights for your SEO campaign.‍

‍You can use an SEO campaign to measure the performance and conversion rate of specific keywords and target your search engine optimization accordingly to the most effective keywords.

In addition, the demographic data and user interests from SEA campaigns allow you to better tailor your content to the needs of your target group.

Frequently asked questions

What is the best way to implement SEO / SEA?

The decision of whether to hire a specialized agency or take a do-it-yourself (DIY) approach depends on your resources, expertise, and goals.

‍The following overview table can help you make the right decision for your company.

How high should my monthly budget for SEO or SEA be?

The costs for SEO (search engine optimization) and SEA (search engine advertising) in Switzerland vary depending on the provider, scope of services and specific requirements. Here is an overview based on current market analyses:

‍Please note that these figures are indicative and may vary depending on specific requirements and market conditions.

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Which tools support the implementation of SEO and SEA?

Here is an overview of tools that can help you with SEO and SEA—tools that we use ourselves here at Beyondweb:

An overview of the best SEO tools:

The best SEA tools at a glance:‍

What role does SEA play in branding?

Search engine advertising (SEA) plays an important role in brand building as it allows companies to target their audience and increase their visibility.

Through SEA, companies can make their brand better known, advertise their products or services and increase their sales. SEA is particularly effective when companies want to see quick results or bridge the waiting time until SEO measures take effect.

SEA offers the opportunity to run targeted campaigns that are geared towards specific demographic characteristics, interests and behaviors of users. This enables a precise approach to the target group and an effective increase in brand awareness.

In addition, continuous monitoring and optimization of SEA campaigns allows advertising messages to be constantly improved and adapted to the needs of the target group. In this way, SEA makes a significant contribution to successful branding and the achievement of corporate goals.

According to numerous studies, including those by Advanced Web Ranking, around about 70-80% of clicks are on organic search resultswhile paid ads only receive 20-30% of clicks. In addition, users often trust the organic results more, which leads to higher credibility. However, SEA offers the advantage of ensuring immediate visibility, especially for new products or time-sensitive offers.