Importance, Scalability, and Profitability of SEO VS Advertising with Agencies - Detailed Analysis

As you can see, we're progressing with great speed and so far, I've revealed most of the important strategies which will improve your SERP ranking through my SEO tutorial series. Today, I've decided to explain the importance of SEO and its profitability VS Advertising with agencies.

The demand for online-based work is increasing and more people are getting into SEO field than ever. That's because you can market your products to your potential targeted customers for the long time than you would do otherwise. Marketing your product through Advertising agencies is way too costly. You pay anywhere from $0.10 per click to $10 per click just to attract a single person to your product. And there's no guarantee if that person will be interested to buy your product or not.

Image Credits: Lynda

On the other hand, if you market your product by implementing proper SEO and do enough efforts on that, then you'll notice that your numbers of targeted customers will be ever-increasing because you don't pay Advertising agencies on per click per person basis. You don't spend your money every month to keep attracting new people. Rather, you do one-time SEO efforts (and I mean, serious efforts) and enjoy its fruits for the lifetime (except when someone is putting more efforts than you).

Advertising with Agencies VS SEO:

Let's compare with an example, you spend $200,000 with Advertising agencies to get 2 million people. You pay them a minimum of $0.10 per click. That means, $200,000 will be spent for 2,000,000 people in a month. And if you want to repeat the process, you'll have to spend another $200,000 for another 2,000,000 people for the next month and it goes on and on till you no longer need more people (which never happens).

Now assume that you have $200,000 budget for SEO. With that budget, you can literally rank for medium difficulty keywords on the first page of Google. The search volume of medium-difficulty keywords is very high. Assume that each keyword has the volume of 20,000 searches per month and you are looking to market your website to 2,000,000. That would need only 100 keywords ranking for such keywords.

Now, let's divide your budget by the number of keywords you want to rank for. (i.e $200,000 by 100 keywords). That means you have $2,000 budget for each keyword. And if you are rational enough, then you can make a blast with that budget, man.

Assuming that you've successfully achieved your goal of ranking your site for 100 targeted keywords and each has 20,000 search volume. Now your site is going mainstream and you're getting 2,000,000 search impressions EVERY MONTH which translates to more than 20M search impressions a month (which could cost you $2M to achieve with Advertising agencies).

Isn't it amazing? You saved your $1800,000 and you're making the great number of sales every month.

Scalability of SEO:

The great thing about SEO is, it is scalable. The more budget you have, the greater impact you will have. That $200,000 budget gave you 20M search impressions. Consider how much $2M budget could make you achieve? Yes, that's freaking 200M search impressions.

Conversion Ratio with Advertising:

Advertising agencies do their best to prevent fraudulent clicks but that doesn't mean that they are successful in it. Some people make living out of your invested money (the money that you invested with Advertising agencies) because they monetize their site with your targeted agency and cleverly provide fraudulent clicks. (I'm assuming Google Adsense, Chitika etc)

Even though you invested $2M with an Advertising agency in a year, you're not seeing a massive increase in your conversion. Rather, your conversion ratio is decreasing and the costs are increasing.

Conversion Ratio with SEO traffic:

Let's assume that you've ranked 1,000 targeted keywords in your niche and you are getting 200M search impressions. But only 20% of the people come to your site (40 million people). Because they came to your site with their own decision, they are likely to be more interested in what they are searching.

You don't pay advertising agencies on per click basis. So, it doesn't matter if the visitor had an interest or not. You are literally saving huge cash by doing SEO to your site.

Naturally, SEO attracts targeted people if you optimize the right keywords. Amazon's success is due to its Google ranking. If you are a big investor and wise enough, then you'd likely choose SEO over Advertising with agencies. Nothing beats natural traffic.

The Magic: :

If you are ranking for medium difficulty keywords and over 40 million people are coming every month to your site. Then you can expect "high authority" sites to produce a backlink for you. Do you know what it means at all? That means, you're going mainstream and the door of bigger success is opened for you. Once you gain the authority backlinks, you can start targeting high-competition keywords which are usually in the volume of 50,000 searches to 1 million searches per month

In SEO, you don't just rank for your targeted keywords. If you're producing great content, then you can expect the ranking for random keywords related to your article/post topic. It means, even though you targeted 1,000 keywords for 200M people, you're ranking for 3,000 keywords which means you're getting more traffic than you worked for.

Conclusion: :

Don't work hard. Just work smart! You can take over the world with your smart thinking and in this case, if you are choosing Advertising with agencies over SEO then you're probably making a big mistake. One thing that you must keep in mind that the success doesn't come overnight. You'll have to work for it. Now it's your call whether you want to work hard or work smart for success. Advertising with agencies is an easy way out but less profitable and success in SEO is difficult to achieve but it's far more profitable than advertising with agencies.