Paid Search Vs Organic Search: Key Differences And Benefits

Discover the key differences between paid search and organic search, and learn which strategy is best for driving traffic to your website.

October 17, 2024
Written by
Matt Lenhard
Reviewed by

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The digital advertising world has grown by leaps and bounds over the past decade. As businesses continue to shift their marketing strategies into the online space, one of the most fundamental dilemmas they face is the decision between investing in paid search or focusing on organic search. Each has its merits, and the right choice can have a significant impact on the visibility, traffic, and revenue generated by your website.

In this post, we will examine the strengths and weaknesses of both paid and organic search strategies. We'll look at how they work, their costs, and the pros and cons associated with each. Whether you're a small business or a multi-national enterprise, understanding the differences between these two approaches to search marketing will help clarify which option is the best fit for your goals.

What Is Paid Search?

Paid search refers to the ads that appear at the top of search engine results pages (SERPs) and are often labeled as "sponsored" or "ad." The most common form of paid search advertising is pay-per-click (PPC), where businesses bid on keywords to appear when users search for specific terms. When a user clicks the ad, the advertiser pays a fee.

PPC campaigns primarily occur through platforms like Google Ads and Microsoft Advertising. These campaigns allow advertisers to target specific keywords, demographics, geographic locations, and even devices.

Here’s a breakdown of how the typical paid search process works:

  • Advertisers bid on keywords.
  • The ad is displayed to users searching for those keywords.
  • If a user clicks the ad, the advertiser pays.
  • Ads appear at the top and bottom of search results pages.

One of the key benefits of PPC advertising is that it can show immediate results. The moment you launch your campaign, your ad can begin driving traffic. This makes it an ideal strategy for businesses that want to attract leads quickly.

What Is Organic Search?

Organic search refers to the non-paid search engine results that search engines like Google, Bing, and Yahoo display when a user queries something. Unlike paid search, organic results appear based on their relevance, trustworthiness, and user experience, without any direct cost to the website owner.

Organic search optimization (known as Search Engine Optimization, or SEO) involves a variety of techniques to improve a website's visibility in search engines, such as:

  • Keyword optimization within your content.
  • Creating high-quality, relevant content.
  • Building high-authority backlinks.
  • Improving website speed and navigation.
  • Generating positive user signals (e.g., time on site, bounce rate).

The goal of SEO is to increase a site’s ranking on search engine results pages (SERPs) so that it appears on the first page. Studies show that sites on the first page of Google get over 90% of the clicks, with the first result typically receiving around 27.6% of all clicks.

Advantages of Paid Search

Paid search offers businesses certain advantages that organic strategies may take longer to achieve:

1. Faster Results

Compared to SEO, which can take months to generate results, paid search starts driving traffic as soon as your campaign goes live. This is particularly valuable for new businesses, product launches, or time-sensitive promotions.

2. Highly Targeted Campaigns

PPC allows businesses to target users by various criteria, such as age, gender, geographic location, and even the device they’re using. This level of precision means your ad reaches a highly relevant audience, increasing the likelihood of converting clicks into customers.

3. Visibility on Page One

With paid search, you don’t need to fight your way to the top of the organic search results. Your ad can claim the top spots of the search engine's results page, bypassing the often fierce competition for organic rankings.

4. Controllable and Measurable Costs

PPC campaigns typically use a budget set by the advertiser, which means you control how much you spend daily, weekly, or monthly. Additionally, platforms like Google Ads provide transparent analytics and reporting, allowing businesses to track conversions, clicks, and return on investment (ROI) with ease.

Advantages of Organic Search

While paid search yields immediate results, there are numerous advantages to focusing on organic search in the longer term:

1. Greater Credibility and Trust

Many users are aware they're clicking on an ad when using paid search, and some may even skip ads as a result. Organic results, however, are perceived as being more credible since they’re earned based on quality and relevance, not by paying for clicks.

2. Long-Term Results

Once you’ve generated traffic and achieved higher rankings through SEO, you may be able to sustain those positions for a more extended period without continuing to pay for them. A well-optimized site can maintain a steady flow of traffic with minimal ongoing investment.

3. Higher Click-Through Rates (CTR)

Generally, organic listings receive more clicks compared to paid ads. According to a study from SEO company BrightEdge, 53% of all web traffic comes from organic search results, while only 15% is generated from paid search.

4. Cost-Effectiveness

While SEO requires time and resources, it's generally more cost-effective in the long term compared to constantly paying for click-based advertising. SEO doesn't require recurring payments to maintain, unlike PPC campaigns.

Key Differences Between Paid and Organic Search

To better understand how paid and organic search solutions differ, here’s a side-by-side comparison:

Aspect Paid Search Organic Search
Cost Pay-per-click (you pay for each click on your ad) Free (requires time and effort for SEO)
Time Frame Immediate visibility Longer to achieve ranking (months)
Longevity Ad disappears when budget ends Long-term traffic once the page ranks well
Visibility Top of SERP (above organic results) Below paid ads on SERP
Credibility Less trust (seen as ads) More credibility (earned, not paid for)
Click-Through Rate Lower or comparable to organic Higher CTR overall

When to Use Paid Search

Paid search should be considered when you need immediate results, such as during a product launch or time-sensitive promotion. It’s also a good fit for local businesses targeting a specific geographic area or for industries where competition is fierce, and organic ranking could take competitive resources and time. If you have a flexible ad budget and good analytics tracking, paid search can benefit your digital strategy greatly.

Additionally, for e-commerce websites looking to test multiple products or audiences, paid search can offer faster insights and conversions compared to waiting for organic rankings to grow.

When to Focus on Organic Search

If your business has a long horizon, SEO should be a key pillar of your digital marketing strategy. Organic search provides the opportunity to consistently engage your audience without repeating ad expenditures for the same keywords. It’s particularly effective for content-driven websites, blogs, or businesses where organic user engagement is a key metric of success.

Additionally, organic search is excellent for industries or sectors where credibility and trust are paramount. Appearing high in organic search results signifies to users that you’ve earned your position based on relevance and authority, rather than paid for it.

Combining Paid Search and Organic Search

It’s important to note that these two strategies are not mutually exclusive. In fact, combining a strong organic search presence with targeted paid campaigns is often the most effective approach. Paid search can deliver quick wins, while organic search helps build long-term traffic. Together, they can complement each other.

For example, you can use the data from your paid campaigns to discover which keywords perform best in generating conversions and then focus your SEO efforts to rank for those terms organically. Conversely, if your organic efforts show that certain pages or keywords on your site are highly effective, you can amplify their performance immediately by running PPC ads for them.

Final Thoughts

The decision between paid search and organic search comes down to the specific needs, goals, and budget of your business. Paid search provides immediate results, while organic search lays the foundation for a sustained, long-term flow of traffic. Consider what makes the most sense for your brand, resources, and overall digital marketing strategy.

Ultimately, many businesses find success by combining paid and organic efforts to maximize visibility and capitalize on the relative strengths of each approach in driving traffic and conversions.

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Matt Lenhard
Co-founder & CTO of Positional

Matt Lenhard is the Co-founder & CTO of Positional. Matt is a serial entrepreneur and a full-stack developer. He's built companies in both B2C and B2B and used content marketing and SEO as a primary customer acquisition channel. Matt is a two-time Y Combinator alum having participated in the W16 and S21 batches.

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