Insights / 01SEO

SEO or Google Ads: which should a small business spend on?

Advertising rents attention and stops when you do; search visibility is earned and compounds. When each is the right call, where ad budgets actually leak, and the sequence that works for a local business.

Author
Chris Carswell
Published
Short answer

Advertising buys you enquiries this week and stops the day you stop paying. SEO takes three to six months and keeps working afterwards. For most small businesses the answer is both, in a sequence: advertise while the search work builds underneath, then reduce the spend as organic visibility takes over. The mistake is treating advertising as permanent, which is how businesses end up ten years in, still paying for every enquiry, owning nothing.

The honest framing: owned, earned, rented

Comparing "SEO" and "Google Ads" as though they are two products on a shelf misses what actually separates them.

Advertising is rented attention. It is fast, precise and completely controllable, and it ends the instant the payment does. Search visibility is earned. It is slow, partially outside your control, and it keeps producing after you stop investing in it. Your website is owned — the asset both of the others depend on.

That difference, rather than cost per click, is what should drive the decision. The question is not "which is cheaper" but "what do I have at the end of it".

What each one is actually good at

AdvertisingSEO
Time to first enquiryHours to daysThree to six months
What happens when you stopEnquiries stop immediatelyDeclines slowly over months or years
Cost per enquiry over timeFlat or risingFalls as volume builds
Control over who sees youHigh: location, time, device, searchLow: you influence, Google decides
Best forUrgency, testing demand, seasonal peaks, new businessesCompounding visibility, established businesses, defensible position
Worst forA permanent substitute for rankingNeeding work next Tuesday

Neither column is the winner. They answer different questions, and a business that only ever uses one is usually leaving something on the table.

When advertising is the right call

You need work this month. Nothing else moves that fast. If the diary is empty in three weeks, SEO is not the answer to that problem, whatever anyone tells you.

You are testing whether demand exists. Before building a service page, or a whole business, a small ad budget will tell you in a fortnight whether anybody is searching. That is cheap market research.

You have no visibility yet. A new domain will not rank for competitive commercial searches for months. Advertising bridges that gap while the owned work builds.

Your peak is seasonal and short. If most of your year happens in six weeks, you cannot wait for compounding.

The search is high-value and rare. For some businesses a single enquiry is worth thousands. At that point paying £15 a click is arithmetic, not extravagance.

When advertising is the wrong call

When it has become the whole business. If pausing the account tomorrow would stop your enquiries dead, you have rented for years and own nothing. That is a fragile position and it usually got that way gradually.

When your margin cannot take it. Click prices in some sectors have risen past what a small business can sustain. If an enquiry costs £40 and converts one time in five, you are paying £200 per customer. That works for a kitchen fitter and not for a barber.

When the website will lose them anyway. Paying for a click that lands on a slow, unclear page is the most expensive mistake in digital marketing, because you pay for the visit and get nothing. Fix the page first. Our article on traffic but no enquiries covers what goes wrong there.

When you are mostly buying your own name. A great many accounts spend a meaningful share on brand searches — people typing your business name, who would have found you anyway. It reports beautifully and adds very little.

The thing that wastes the most money

It is rarely bids. In ten years of managing campaigns, the waste was overwhelmingly in three places, and they are the same three places today.

Search terms nobody would have chosen. Broad match and Performance Max will spend your budget on searches you would reject instantly if someone read them to you. The search terms report is the single most useful screen in the account, and most advertisers have never opened it.

Conversions that were never enquiries. A page view counted as a conversion. The same enquiry counted three times. A form submission from a bot. This matters more than it used to, because automated bidding takes that data as truth and confidently optimises towards it. Wrong data does not produce slightly worse results; it produces confident, expensive, wrong results.

The landing page. The click is bought, the visitor arrives, and the page takes four seconds and does not say what the business does. Everything upstream of that was wasted.

Fixing those three is almost always worth more than any amount of bid adjustment.

The sequence that usually works

For a local business starting from a weak position, this ordering has served well:

  1. Fix the website first. It is the owned asset and everything else runs through it. Advertising into a poor site is paying to lose people.
  2. Finish the Google Business Profile. Free, fast, and for local searches it drives more calls than the website does. See what is local SEO.
  3. Advertise deliberately, with an end date in mind. Tight targeting, honest tracking, a budget you can defend. This covers the gap while the next step builds.
  4. Build the search visibility underneath. Service pages, genuine location pages, question-led content, reviews. Three to six months before it shows properly — see how long SEO takes.
  5. Reduce the ad spend as organic takes over. This is the step that gets skipped, because nobody is incentivised to suggest it.

What that looked like in practice

Your Local Mechanic, a mobile mechanic in Dudley, was buying most of its enquiries through Google Ads at £1.86 a click, on a site that Google barely showed. The temptation would have been to optimise the account.

Instead the site was rebuilt around the jobs and districts people actually search for, each area got a genuine page, the Business Profile was aligned and a review routine set up. Google Ads were switched off entirely on 30 April 2026. By August the business was getting 366 visits a month from Google for nothing, up from 73, with calls from the listing up 137% and the rating up from 3.6 to 4.4.

At the old click rate, those 366 visits would have cost about £680 a month. The full case study has the figures.

That is not an argument that advertising is bad. It is an argument that advertising should have an exit.

A note on who is telling you this

It is fair to ask whether someone recommending less advertising has ever run any. Chris Carswell spent ten years as a co-founder of a national home services business, creating and managing campaigns accounting for more than £10 million of spend between 2015 and 2025 across Google Ads and Microsoft Advertising, and runs paid search and Meta campaigns for studio clients today.

The advice to spend less comes from having spent a great deal, which is generally when you learn where it goes.

One structural thing worth knowing: most agencies charge a percentage of your ad spend. That model rewards them for increasing your budget and gives them no reason at all to tell you to cut waste. It is worth asking how your agency is paid before weighing its advice about how much to spend.

Where to go next

If you are advertising now and cannot say what an enquiry costs you, that is the first thing to establish, and a search terms and conversion tracking audit will usually pay for itself.

Tell us about it and we will look at the account and the website together and tell you which of the two is losing you more. Digital marketing in Stourbridge sets out how we think about the mix, and how much SEO costs covers the other side of the sum.

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