In this brief post I wanted to explore Search Engine Optimization (SEO) and Pay-Per-Click advertising for local businesses. Both methods can be highly effective, however the team at Topaz (unsurprisingly) favours SEO, particularly for local businesses navigating uncertain economic conditions. In our view, SEO offers significant advantages that paid advertising doesn’t replicate.
A Quick Primer on SEO and PPC
Search Engine Optimization (SEO) covers all of the methods that increase your website’s visibility in non-paid search engine results. The goal is to drive highly qualified traffic to your site by ranking higher on platforms like Google.
Pay-Per-Click or Impression (PPC or PPI) is a form of online advertising where you pay each time your ad is clicked or seen. Common platforms include Google Ads, Microsoft Ads, Facebook, Instagram and Reddit. Local businesses can use PPC to generate leads or gain visibility quickly.
Topaz Local doesn’t offer PPC services, but PPC can still provide great returns for local businesses – particularly in the short term, when used alongside promotional offers or to creatively capitalize on unique market opportunities.
So, why do we favour SEO?
The Power of Organic Rankings
Effective SEO does more than bring in traffic – it builds brand reputation, trust, and long-term ROI. Think about your own search habits: when you look for a local product or service online, where do you usually click? Data shows that the “local 3-pack” (the three listings with reviews that appear for local searches) captures 40–50% of the traffic for a given Google search. The top organic result takes 20-25% of the rest
A high local ranking acts as both a trust signal, and a passive lead generation machine. The majority of people tend to trust to what they see at the top of Google. I’ve been doing SEO for years now and I usually still pick a business from the 3-pack when I’m looking for something, despite knowing the placement is the result of good SEO.
SEO vs. PPC: Building vs. Renting Your Business’s Online Home
So, with PPC, you’re paying for short-term exposure – it’s a flat conversion of dollars to clicks or impressions. It’s flexible and fast, but there’s little lasting value after the ad spend is finished. Doing SEO means building a digital asset that keeps working for you. It does take time to establish rankings, but once you’re there, a flat monthly investment yields a steady stream of high-intent, no-cost-per-click traffic.
SEO’s Advantage in an Economic Downturn
In a slumped economy, it doesn’t matter how good your ad campaign is… your paid clicks and impressions end up losing conversations. People aren’t spending as much… it doesn’t mean you shouldn’t buy ads, but ads do lose some of their effectiveness.
On the other hand, if your business controls a top ranking local placement, you’re capturing the most qualified traffic available – the people in your city actively searching for your product or service – with no increase to your spend per click. There is absolutely no other initial lead funnel like search engines when the economy is struggling. SEO makes a world of difference in an environment where sales and client acquisition have become more difficult.
The Opportunity in the Downturn
An economic downturn can be the best time to invest in SEO. The common wisdom that marketing is first to go during a recession typically holds true. When businesses cut or stop their SEO spend, it creates a rare opportunity for those who stay the course or double down. There are exceptions to this rule, but SEO usually requires upkeep to be effective, especially in the local space. The businesses that have the capacity to start, or continue to invest during downturns often emerge stronger, with greater visibility and market share than their hesitant competitors.
Why Don’t More Businesses Prioritize SEO?
Finding a competent SEO agency can be hard. The reality is many business owners have had extremely frustrating experiences with agencies that overpromised and underdelivered. They’re rightly hesitant to invest in SEO again. This has significantly tarnished the industry’s reputation.
If this sounds familiar, you may want to check out our related article, “Navigating the SEO Industry”, where we explore the shadier side of SEO and give some insight into what business owners should watch out for when choosing a provider.
If you’d like to have a conversation with us about SEO for your local business, click here.