SEO

Stop Wasting Money: Choosing Ads or Google Search Results

Should you pay for ads or invest in long-term search rankings? Learn which strategy makes sense for your business revenue and how to get more phone calls.

AI Summary

This post explains when small businesses should use Google Ads versus organic SEO based on their annual revenue. It provides a roadmap for shifting marketing spend from immediate 'pay-per-click' leads to long-term 'free' search traffic as a business scales from $100k to over $1M.

If you’re running a business in Brisbane—whether you’re an electrician in Coorparoo, a lawyer in the CBD, or a shop owner in Chermside—you’ve likely been hounded by people promising to put you on the 'first page of Google.'

You’ve probably also seen the 'Sponsored' results at the top and wondered if it's better to just pay your way to the top or play the long game.

Here is the blunt reality: Most small business owners waste thousands of dollars every year because they pick the wrong strategy for their current size. They try to do 'SEO' when they need cash flow today, or they rely solely on expensive ads when they should be building an asset that brings in customers for free.

In this guide, I’m going to break down exactly when you should use paid ads and when you should invest in organic search rankings based on how much money your business is actually making. No fluff, no jargon—just what works to get the phone ringing.

Before we dive into the revenue levels, let’s define these two in plain English.

Paid Ads (Google Ads): You pay Google every time someone clicks on your link. It’s like a tap. Turn it on, and the leads flow immediately. Turn it off, and the leads stop. It’s fast, but it’s expensive.

Organic Search (SEO): This is about making Google trust your business so you show up naturally under the ads. It’s like planting a fruit tree. It takes time to grow, but once it’s mature, you get the fruit for free without paying for every bite. To understand how this works for Aussie companies, check out this search ranking strategy.

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At this stage, you are likely a one-man band or have one staff member. You need customers now to pay the bills and keep the lights on.

The Verdict: 90% Paid Ads, 10% Basics.

I see so many new tradies or consultants spend $2,000 a month on a 'long-term SEO plan' when they don't even have enough work for next week. That is a mistake. If you have a small budget, you need a 'pay-to-play' approach.

Why Ads work here: Speed: You can set up an ad today and get a phone call this afternoon. Control: You can target specific suburbs. If you only want jobs in Ascot or Hamilton, you can tell Google to only show your ads there. Testing: You quickly learn what people are actually searching for.

What to avoid: Don't sign a 12-month contract for 'content writing' or 'backlink building.' You can't afford to wait six months for a result. Focus on getting more phone calls through your local profile and simple ads.

The Goal: Get enough cash flow to survive and hire your first helper.

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Now you’ve got a steady stream of work, but your profit margins are being squeezed by the cost of ads. You’re noticing that every time Google raises their prices, you make less money.

The Verdict: 60% Paid Ads, 40% Organic Growth.

This is the 'transition' phase. You still need the ads to keep the lead volume up, but you must start investing in your own 'digital real estate.'

The Problem with Only Using Ads: I worked with a landscaper in Morningside who was spending $4,000 a month on ads. He was busy, but he was 'working for Google.' Nearly 30% of his profit was going straight back into ad costs. We started shifting his focus to improving his website's reputation so he didn't have to pay for every single lead.

Practical Steps at this Level: 1. Fix your website speed: If your site takes more than 3 seconds to load on a phone, you are literally throwing away the money you spend on ads. People will click the ad, get bored waiting for the page, and leave. You can stop losing customers simply by making your site work better on mobile devices. 2. Reviews, Reviews, Reviews: Start a system to get a Google review from every single happy customer. This costs $0 but is the most powerful way to show up in the 'Map Pack' for free. 3. Target your local area: Instead of trying to rank for 'Plumber Australia,' focus on dominating your specific suburb. It's much cheaper and more effective.

The Goal: Lower your 'cost per lead' so you can keep more of your hard-earned profit.

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At this level, you likely have a fleet of vehicles or a team of professionals. Your biggest risk is 'Ad Fatigue' and rising competition. Big national companies with huge budgets might try to outspend you on ads.

The Verdict: 30% Paid Ads, 70% Organic & Brand.

By now, your organic search presence should be doing the heavy lifting. You want to be the business that shows up everywhere—in the ads, in the maps, and in the top three organic results. This 'triple threat' makes you look like the only logical choice in Brisbane.

Why Organic wins here: Authority: People trust the 'natural' results more than the 'Sponsored' ones. Profitability: Leads from organic search effectively cost you nothing once the work is done. This is how you scale from $1M to $2M without doubling your marketing budget. Defence: It is very hard for a competitor to 'buy' their way into the organic spots. It takes time and effort that money can't always bypass.

The Strategy: Keep your ads running for high-intent 'emergency' keywords (e.g., 'burst pipe Brisbane' or 'emergency locksmith'), but let your organic rankings handle the 'research' keywords (e.g., 'best kitchen renovation ideas' or 'cost of a new roof').

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I see two major mistakes every week:

1. The 'Cheap' SEO Trap: A business owner pays $500/month to an offshore agency. They get a monthly report full of graphs they don't understand, but the phone doesn't ring any more than it used to. This is a waste of money. Real search growth requires local knowledge and actual effort. If it's too cheap, they aren't doing anything that will actually make you money. 2. The 'Ad Addiction': A business grows solely on Google Ads for 5 years. Suddenly, a big competitor moves into town, starts bidding on the same keywords, and the price per click triples. Because the business never invested in getting phone calls without ads, they are now trapped. They either pay the higher price and lose money, or turn off the ads and go out of business.

This is the question everyone asks. While every industry is different, here is a rough guide for Brisbane small businesses:

Revenue <$150k: Spend $500 - $1,500/month (mostly on Ads). Revenue $150k - $500k: Spend $2,000 - $4,000/month (split between Ads and building your search presence). Revenue $500k+: Spend 5-10% of your total revenue on marketing to keep growing and defend your position.

If you're feeling overwhelmed, here is the order of operations I'd give to a mate:

1. Make sure your website works on phones. If people can't call you with one thumb-press, don't spend a cent on marketing. 2. Claim your Google Business Profile. It’s free. Fill it out completely. Add photos of your team and your work in Brisbane suburbs. 3. Start Google Ads if you need work now. Keep the target area small (e.g., within 10km of your office) so you don't waste money on travel time. 4. Invest in long-term rankings once you have stable cash flow. This is how you build a real asset that makes your business worth more if you ever decide to sell it.

Yes—but only if you match the strategy to your bank account.

Ads make you money today.

  • Organic Search makes you money next year (and for years after).
Don't let a marketing agency talk you into a 'long-term strategy' if you're struggling to make payroll this month. Conversely, don't stay addicted to ads forever, or you'll never build a truly profitable, self-sustaining business.

At Local Marketing Group, we don't care about 'impressions' or 'algorithms.' We care about how many times your phone rings and how many sales you're making. We've helped dozens of Brisbane tradies and professional services move from 'surviving on ads' to 'dominating their local market.'

Ready to stop guessing and start growing? Contact Local Marketing Group today and let’s look at what will actually work for your revenue level.

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