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SEO vs Google Ads: Which Should a Local Business Invest in First?

Both drive leads. Both cost money. One builds over time, the other starts tomorrow. Here's how to decide which to invest in first based on your goals, budget, and timeline.

Matt Russell
Matt Russell
February 3, 2026 · 9 min read

The Short Answer

If you need leads this week, start with Google Ads. If you can invest 3 to 6 months before expecting real return, start with SEO. If your budget allows it, run both from day one. That's what we recommend to most of our clients, and it's what we'd do if we were starting a local business ourselves.

But "it depends" is a frustrating answer when you're trying to make a real decision with real money. So let's get specific about what each channel actually does, what it costs, and when each one makes sense, based on what we've seen work across 100+ local business campaigns in the Seattle metro.

What Each Channel Actually Does

SEO (search engine optimization) improves your organic rankings in Google. When someone searches "plumber near me" or "best remodeler in Seattle" and your website shows up without a sponsored tag, that's SEO. You don't pay Google for those clicks. You earn them through content, technical optimization, and authority building. It's slower. It's harder to measure in week one. But when it kicks in, it's the most cost-effective lead source most local businesses will ever have.

Google Ads puts your business at the top of search results through paid advertising. You bid on keywords, write ads, and pay every time someone clicks. The moment you turn on a campaign, you're visible. The moment you turn it off, you disappear. It's that simple, and that expensive if you're not managing it well.

Most business owners think of SEO as a marketing tactic. It's not. It's infrastructure. Every dollar you put into SEO compounds. Your rankings don't reset at the end of the month like an ad budget does. We have clients paying a fraction of what they paid in year one and getting three times the leads.
Dylan Axelson
SEO Director, Integrity Marketing

Think of it this way: Google Ads is renting space at the top of Google. SEO is buying property there. One gives you immediate access. The other builds equity over time.

SEO vs Google Ads infographic comparing cost, timeline, ROI, and best use cases for local businesses
SEO vs Google Ads: A side-by-side comparison for local businesses

Side-by-Side Comparison

SEOGoogle Ads
Time to results3–6 monthsDays to weeks
Monthly cost$1,500–$3,000/mo$750/mo + ad spend
Traffic when you stopContinuesStops immediately
Cost per lead over timeDecreasesStays flat or increases
Best forLong-term growthImmediate leads
Local pack (maps)Strong impactLimited impact
Competitive keywordsTakes time to rankInstant visibility
Trust factorHigher (organic)Lower (labeled as ad)
Data & insightsSlower feedback loopImmediate data
Estimated Cost Per Lead Over 12 Months (Local Service Business)
Month 1–3
Google Ads: $80–120
Month 1–3
SEO: $150+ (building)
Month 4–6
Google Ads: $75–110
Month 4–6
SEO: $60–90
Month 7–12
Google Ads: $70–100
Month 7–12
SEO: $25–50
Month 7–12
Both: $20–40
SEO only Google Ads only Both combined

When to Start With SEO

SEO is the right first move when you're building a business for the long term and you can wait a few months for momentum to build. It's especially powerful for local businesses because of Google's local pack, the map results that show up at the top of local searches.

SEO makes sense when:

Start With SEO If...

  • You have steady cash flow and can invest for 3 to 6 months
  • Your Google Business Profile needs optimization
  • You want to reduce your cost per lead over time
  • You're in a market where organic rankings are attainable
  • You already have some word-of-mouth leads coming in
  • You want your website to generate leads on its own

Start With Google Ads If...

  • You need leads this month, not in 6 months
  • You're launching a new business or entering a new market
  • You have a specific budget for customer acquisition
  • Your competitors dominate the organic results
  • You want to test which keywords convert before investing in SEO
  • You have seasonal demand you need to capture now

When to Start With Google Ads

Google Ads is the fastest path to leads. If you launched your business last month and need the phone to ring, this is where you start. There's no waiting period. You set a budget, target your keywords, and you're live.

The tradeoff is that every click costs money. A typical local service business might pay $8 to $35 per click depending on the industry. A plumber in Seattle might pay $25 per click. A therapist might pay $12. Those costs are real, and they don't go down over time the way SEO costs do relative to the traffic they produce.

But here's what Google Ads gives you that SEO can't: data, fast. Within the first 30 to 60 days, you'll know exactly which keywords drive calls, which ones waste money, and what your real cost per lead is. That intel is gold when you eventually invest in SEO because you're not guessing which keywords to target.

People underestimate how much you learn from running ads. Within 60 days I can tell you exactly what a lead costs in your industry, which services people actually search for, and which zip codes convert. That's not just ad data. That's a business intelligence report you can't get anywhere else.
Brock Olsen
Paid Media Strategist, Integrity Marketing

The Best Strategy: Run Both

The businesses that grow the fastest use both channels together. It's not SEO or Google Ads. It's SEO and Google Ads, phased strategically.

Here's how it typically works for our clients:

Months 1–3
Launch Ads, Build the SEO Foundation
Launch Google Ads to generate immediate leads. Begin SEO work: technical audit, Google Business Profile optimization, on-page improvements, and content strategy. Ads carry the lead generation load during this phase.
Months 3–6
SEO Gains Traction, Ads Get Smarter
SEO starts producing results. Local pack rankings improve. Organic traffic increases. Google Ads continues but you now have data to refine both campaigns. Organic leads begin supplementing paid leads.
Months 6–12
Compound Growth, Lower Blended Cost
SEO produces consistent organic traffic and leads. Many clients scale back ad spend on keywords where they now rank organically, redirecting budget to new opportunities or reducing total spend. Blended cost per lead decreases significantly.
The best part about running both is the feedback loop. Brock's team finds a keyword converting at $40 a lead in Google Ads. I know that's a keyword worth building a landing page and content around for organic. Six months later that keyword ranks organically, Brock pulls the ad spend, and the client's getting those leads for free. That's how you win long-term.
Dylan Axelson
SEO Director, Integrity Marketing

The compounding effect: The longer SEO runs, the lower your overall cost per lead becomes because organic traffic is essentially free after the initial investment. Google Ads costs stay relatively flat. Over 12 months, the business running both channels will almost always outperform the business running one.

Not Sure Where to Start?

We'll review your business, your competitors, and your market and tell you exactly where your marketing dollars will have the most impact.

How Your Industry Affects the Decision

The right mix depends heavily on what you do and who you're trying to reach.

Home services (contractors, roofers, plumbers, painters): These businesses tend to benefit most from starting with both. Google Ads captures high-intent searches like "emergency plumber Seattle" while SEO builds visibility for broader terms like "best plumber in Seattle" and local pack presence. The search volume is high and the leads are valuable, so investing in both channels early pays off fast.

Professional services (lawyers, therapists, accountants): SEO tends to be the stronger long-term play here because trust and credibility matter more. People research attorneys and therapists before making contact. Content marketing and strong organic presence build that trust. Google Ads works well for capturing immediate demand, but the real growth comes from ranking for informational and comparison keywords.

E-commerce and retail: Google Shopping ads are extremely effective for product-based businesses and should usually be part of the strategy from day one. SEO for e-commerce is a longer game but essential for category and product page visibility.

With home services, I can usually get a client profitable in the first 30 days on Google Ads because the search intent is so strong. Someone searching "emergency roof repair Seattle" isn't browsing. They need someone now. Those are $200-plus leads closing at 30 to 40 percent. The math works immediately.
Brock Olsen
Paid Media Strategist, Integrity Marketing

What About Your Website?

Here's the thing nobody wants to hear: neither SEO nor Google Ads will work well if your website can't convert visitors into leads. We see this constantly. Businesses spending $3,000 a month driving traffic to a site that loads slowly, looks outdated on mobile, or buries the phone number. You're basically paying to send people to a competitor.

Before you invest in either channel, make sure your site loads in under 3 seconds, works on every device, has clear calls to action above the fold, and makes it dead simple for someone to call or fill out a form. If your website is more than a few years old or was built by someone who wasn't thinking about conversions, fixing that first will multiply the return on everything else you do.

The Bottom Line

Stop thinking of this as SEO versus Google Ads. They're not competing strategies. They're two halves of the same system. Ads give you speed and data. SEO gives you compounding value and lower costs over time. The local businesses dominating search right now? Almost all of them are running both.

If you're forced to pick one, match the channel to your timeline. Need the phone to ring this month? Google Ads. Building something that lasts? SEO. Can swing both? That's the move.

Frequently Asked Questions

SEO vs Google Ads FAQ

If you need leads immediately, start with Google Ads. If you can invest for 3 to 6 months before expecting results, start with SEO. If budget allows, run both simultaneously. Google Ads delivers short-term leads while SEO builds long-term traffic that compounds over time.
SEO typically costs $1,500 to $3,000 per month for local businesses and builds compounding value over time. Google Ads management starts around $750 per month plus your ad spend budget, often $1,500 to $5,000 or more per month. SEO has a higher long-term ROI, but Google Ads delivers faster results. View our full pricing.
Most local businesses see meaningful ranking improvements within 3 to 6 months. Local pack results (the map section) often improve faster than organic results. Competitive industries and larger metro areas like Seattle typically take longer. Learn more about our SEO services.
Yes, and this is often the most effective strategy. Google Ads generates leads immediately while SEO builds long-term organic traffic. As SEO gains traction, many businesses reduce ad spend while maintaining total lead volume. The two channels also share data. Search term reports from Google Ads inform keyword targeting for SEO.
SEO improves your organic (unpaid) rankings in Google search results through on-page optimization, content, and link building. Google Ads places your business at the top of search results through paid advertising. SEO takes longer but builds lasting traffic. Google Ads delivers instant visibility but stops when you stop paying.
Over 12 or more months, SEO typically delivers better ROI because traffic compounds over time without increasing cost. Google Ads has a more predictable and immediate ROI. You can calculate cost per lead from day one. The best ROI usually comes from using both channels together strategically.
Running Google Ads does not directly improve your organic SEO rankings. Google has confirmed this repeatedly. However, Google Ads provides valuable keyword data that can inform your SEO strategy, and increased brand awareness from ads can lead to more branded searches, which can indirectly support SEO performance.
Most businesses shouldn't fully stop Google Ads unless SEO is generating enough leads on its own. A common approach is to scale back ad spend as organic rankings improve. Some businesses continue running ads for competitive keywords where they don't rank organically, or for seasonal campaigns and promotions.

Let's Figure Out the Right Strategy for Your Business

We'll look at your market, your competitors, and your goals and tell you exactly where to invest. Free consultation, no obligation.