Compare the financial performance and long-term value of local organic search versus local paid advertising (PPC).
SEO Total Profit
$336,000
PPC Total Profit
$309,600
Profitability Crossover Point
Month 20
Choosing between local SEO and Paid Ads (PPC) is a classic marketing dilemma. Both are powerful channels for attracting local customers, but they work in fundamentally different ways. This calculator helps you compare their financial performance over time.
The most successful local marketing strategies don't choose one over the other; they use them in synergy. PPC can provide immediate leads while your long-term SEO strategy gains traction. The keyword and conversion data from your PPC campaigns can provide invaluable insights to inform and accelerate your SEO content strategy. By running both, you can dominate the search results page, capturing clicks from both the ad sections and the local pack.
PPC traffic often converts at a different rate because you can point it to a highly optimized, dedicated landing page designed for a single action. Organic traffic, in contrast, may land on various pages (blog posts, homepage) with different intents. Furthermore, the user intent behind an ad click versus an organic click can differ, affecting conversion propensity.
A "good" CPA is any number that is sustainably lower than your Average Value per Customer. If your average customer is worth $500 in profit, a CPA of $100 is excellent. If they are worth $50, a CPA of $100 is a failing strategy. The goal is to maximize the spread between your customer value and your CPA.
Not necessarily. As the chart shows, while SEO often has a superior long-term ROI, PPC provides immediate, predictable lead flow and valuable data. Many businesses find that reducing their PPC budget (rather than eliminating it) as their SEO performance grows is the optimal strategy. This allows them to maintain a diversified, resilient marketing mix.