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CPC and SEO Understanding the logic of it all

Published by on April 14, 2010

Over the years I have spoken to thousands of companies looking at improving the fortunes of there companies online through either SEO or CPC work. You will always get two points of view someone that has fallen out with CPC and is looking to move into SEO as they are of the belief it is “cheaper” or potentially there current CPC campaign isnt performing and generating them with a good return in investment anymore.

What I want you to consider and bear in mind with any CPC or SEO work when all is said and done even with SEO work for instance this could be classified and worked out for its value from a CPC Cost per click point of view.

Lets say for instance you invested £5000 into a SEO company to work on optimising your company in the natural listings. Lets compare that with the cost per click on google for your chosen keyword for this argument lets say the cost per click runs to an average of £0.50. Lets divide that £0.50p into the £5000 budget invested with the SEO company. This equates to 10,000 clicks on your website now if your seo company is confident in generating this number of clicks then great but no one can 100% hand on hart guarantee this and SEO is no exact science when it comes to the delivery of a specific number of visits.

It is possible to be listed on the first page naturally in the lower positions and receive a very low number of visits thats a fact. I want to use 365trampolines.co.uk as an example this site has been optimised to generae traffic under the keyword of trampolines but in off peak times during the winter a first page listing generated on average only 20 – 50 visits. Now in the spring and summer months it is generating 400 plus visits per day so this is an example of SEO working well.

But if on the other hand I had paid a massive £12,000 in order to gain this first place listing which is what I was quoted by a major UK seo company prior to my seo work this would have taken a massive volume of visits to get back my return. Trampolines on a cost per click on the first page of google can be generated by bidding a maximum of £0.40p so lets divide this into the £12,000 it totals 30,000 clicks !

So adwords could deliver 30,000 clicks from £12,000

The same SEO work with a first page listing in peak season so April to September is generating 400 visits a day. So within 75 days the SEO will start to take over its CPC counterpart and make its money back on the CPC alternative.

What I want to say to everyone is consider both points of view ok people will always back SEO over CPC and some will always back CPC over SEO but please consider both there are so many variables to consider.

1. The cost of the SEO work

2. The cost of the CPC bids within your industry

3. Do you offer a product or service – If you sold plants for instance for £3.99 each CPC might be difficult to find a good return on investment but lets say you provide a plastic moulding service and require just one job per year to pay for the cost of your advertising then CPC could very well work well for you long term.

Also consider online searches and visitors of google there will always be a percentage of people that will click on sponsored results as opposed to natural results and visaversa. What we say is you will always need to cover both bases.

Apply these thoughts and arguments to your own business and industry before making any decisions.

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