The honest answer: for most Australian SMBs, it's both—but sequenced correctly. Google Ads gives you immediate traffic while SEO builds compounding returns.
Digital ad spend in Australia (2025)
Search advertising segment
SEO spend in Australia (2025, +12%)
The problem is when businesses run Google Ads indefinitely because they never invested in SEO foundations, or conversely when they abandon paid entirely and have nothing while SEO takes hold.
The right approach depends on your business stage, cash flow, and timeline. A brand new Sydney tradie needs leads this week, not in 12 months—Google Ads wins. An established eCommerce brand with thin margins can't sustain $10k/month in ad spend forever—SEO wins. Most businesses sit somewhere in between, which is why the best strategy is both, sequenced correctly.
| Factor | A Google Ads | S SEO |
|---|---|---|
| Time to Results | Immediate (same day) | 6-12 months for traction |
| Monthly Cost (SMB) | $2,000-$10,000+ ad spend | $1,400-$7,500 retainer |
| Compounding Value | None (stops when you stop paying) | High (rankings persist for months) |
| Click-Through Rate | 2-5% (paid results) | 20-40% (top 3 organic) |
| Trust Factor | Lower (users know it's paid) | Higher (earned rankings) |
| Control | High (turn on/off instantly) | Lower (algorithm dependent) |
| Best For | Immediate leads, testing, promotions | Long-term growth, brand authority |
Google Ads is a pay-per-click auction. You bid on keywords, your ad appears above organic results, and you pay each time someone clicks. For Australian businesses, average cost-per-click ranges from $2-$8 for local services, $5-$15 for professional services, and $10-$50+ for high-value industries like legal and finance.
Google Ads wins when you need immediate results. A new business with zero brand recognition can be generating leads within hours of launching a campaign. It wins when you're testing a new market or service offering—you can validate demand in days rather than waiting months for SEO. It wins for seasonal businesses that need traffic during peak periods (tax accountants in June, pool installers in summer).
The downside is zero compounding value. Every click costs money. Stop paying, stop appearing. A business spending $5,000/month on Google Ads for 12 months has spent $60,000 and owns nothing—no rankings, no assets, no residual traffic. The moment the budget runs out, traffic stops.
SEO is the process of optimising your website to rank in organic (unpaid) search results. It involves technical optimisation, content creation, and link building. For Australian businesses, SEO typically costs $1,400-$7,500/month depending on competition and scope. Unlike Google Ads, you're not paying per click—you're paying for the work to improve rankings.
SEO wins when you have a 12-24 month runway and want compounding returns. A business investing $3,000/month in SEO for 12 months ($36,000 total) builds an asset that continues delivering traffic for months or years after investment stops. Research shows 82% of SEO experts say it takes 6 months to show meaningful traffic increases, with full results visible at 12-24 months of consistent work.
SEO wins for businesses with thin margins that can't sustain perpetual ad spend. It wins for established brands building long-term authority. It wins when organic click-through rates (20-40% for top 3 positions) dramatically outperform paid click-through rates (2-5%). The downside is the timeline—new Australian websites typically need 12-24 months to crack top 3 positions for competitive terms.
Here's what the timeline actually looks like for a Sydney business investing $3,000/month in SEO:
Technical fixes, keyword research, on-page optimisation. Traffic is flat—this is normal and where most businesses get nervous.
Long-tail keywords start ranking, organic traffic increases 20-40% from baseline. Still not business-changing volume, but proof the strategy is working.
Content starts ranking for competitive terms, backlinks accumulate authority, domain trust builds. Organic traffic typically doubles or triples from baseline.
Top 3 rankings for primary keywords, significant business-changing organic traffic. Many Australian businesses are generating 5-10x more organic traffic than month 1.
A Semrush study found 41% of domains reached top 10 within 6 months, but only 27% stayed there through month 13—showing why ongoing work matters. By month 24, many Australian businesses are generating 5-10x more organic traffic than month 1.
Google Ads wins for emergency services (plumbers, locksmiths, tow trucks) where search intent is immediate and users click the first result. It wins for high-ticket, low-frequency purchases (conveyancing, financial planning) where lifetime customer value justifies high cost-per-click. It wins for businesses with strong conversion funnels that can afford $50-$200 per lead.
SEO wins for content-heavy businesses (publishers, SaaS, education) where users research extensively before buying. It wins for eCommerce with large catalogues where ranking hundreds of product pages compounds value. It wins for local service businesses with recurring revenue (gyms, clinics, accountants) where customer lifetime value is high but individual transaction value doesn't justify expensive ads.
The reality for most Australian SMBs is that both channels work, but the optimal mix shifts over time. Start with Google Ads for immediate cash flow, invest in SEO foundations simultaneously, then gradually shift budget to SEO as organic rankings improve.
The optimal strategy for most Australian businesses is running both channels with a deliberate transition plan. Month 1-6: Run Google Ads at $2,000-$5,000/month for immediate leads while investing $2,000-$3,500/month in SEO foundations. Google Ads provides cash flow and data on which keywords convert best, informing your SEO strategy.
Month 6-12: As organic rankings improve, gradually reduce Google Ads spend and increase SEO investment. Use Google Ads strategically for high-intent keywords where you don't yet rank organically, rather than blanketing all keywords.
Month 12-24: By this point, organic traffic should be substantial enough that Google Ads becomes supplementary rather than primary. Many businesses maintain modest Google Ads budgets ($1,000-$2,000/month) for competitive keywords while SEO handles the majority of traffic generation.
This approach gives you immediate results while building long-term assets. You're not choosing between Google Ads and SEO—you're sequencing them correctly.
Want to see the numbers for your business?
Use Our Google Ads vs SEO CalculatorFor most new Australian businesses, start with Google Ads for immediate traffic while building SEO foundations. Google Ads delivers traffic from day one, providing cash flow and market validation while your SEO investment compounds over 6-12 months. The ideal approach is running modest Google Ads campaigns ($1,500-$3,000/month) alongside consistent SEO investment ($2,000-$3,500/month), then gradually shifting budget to SEO as organic rankings improve.
Google Ads delivers traffic within hours of launching a campaign. You can be generating leads the same day. SEO takes 6 months to show meaningful traffic increases for most Australian businesses, and 12-24 months to reach top 3 positions for competitive terms. This timeline difference is why many businesses use Google Ads for immediate results while SEO builds long-term compounding returns.
Yes, and this is often the optimal strategy for Australian businesses. Run Google Ads for immediate traffic and revenue while investing in SEO for long-term growth. The two channels complement each other: Google Ads provides data on which keywords convert best (informing your SEO strategy), while SEO reduces your reliance on paid traffic over time. Most successful businesses run both, gradually shifting budget from Ads to SEO as organic rankings improve.
Your paid traffic stops immediately. Google Ads is a tap you turn on and off—stop paying, stop appearing. There's no residual benefit. This is the fundamental difference from SEO: Google Ads delivers instant results but zero compounding value, while SEO takes months to build but continues delivering traffic long after you stop active investment (though rankings will gradually decay over 12-18 months without maintenance).
Rankings decay slowly over 12-18 months as competitors continue investing and Google's algorithm evolves. Unlike Google Ads (which stops immediately), SEO has momentum. A well-optimised site with strong backlinks will maintain rankings for months without active work, though you'll gradually lose ground to competitors who continue publishing content and building links. The decay is slow enough that many businesses can pause SEO investment temporarily without catastrophic ranking loss.
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