SEO vs Paid Ads: Which Brings Better Leads?

SEO and paid ads are two powerful tools for generating leads, but they work in very different ways. Here's the key takeaway: SEO delivers higher ROI and better long-term results, while paid ads provide immediate leads but at a higher cost per customer.

• SEO: Focuses on organic traffic, takes 4–12 months to show results, and offers a 19.9x ROAS with lower costs per lead ($126.09). It's ideal for long-term growth and building trust with high-intent customers.
• Paid Ads: Delivers instant results, perfect for urgent needs or seasonal campaigns. However, it has a lower ROI (4.4x ROAS) and a higher cost per customer ($552.93). Leads stop as soon as the budget runs out.

Quick Comparison

Metric	SEO (Organic)	Paid Ads (PPC)
Lead Speed	4–12 months	Immediate (3–7 days)
ROI	High (19.9x ROAS)	Moderate (4.4x ROAS)
Cost Per Customer	$126.09	$552.93
Lead Quality	High (trust-driven)	Variable (transactional)
Sustainability	Long-term benefits	Stops when budget ends

Bottom Line: Use SEO for long-term growth and paid ads for quick wins. Combining both can maximize results by balancing immediate needs with sustained visibility.

Paid Ads VS SEO: Which is Better for Lead Generation?

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How SEO Generates Leads for Construction Businesses

Paid ads might grab quick attention, but SEO has become a go-to strategy for creating a steady, long-term lead generation system for construction businesses. SEO ensures your business shows up when potential customers search for services like "roof repair near me" or "HVAC contractor in Dallas." The key difference? While paid ads stop working as soon as your budget runs out, SEO keeps your business visible over time, building what experts call "digital equity." This means your website continues to generate leads even when you're not actively spending on marketing.

SEO achieves this through two main strategies: on-page SEO and off-page SEO. On-page SEO involves optimizing your website itself - think service pages tailored with location-specific keywords, project case studies with before-and-after photos, and fast-loading mobile pages. Off-page SEO, on the other hand, focuses on building your reputation through backlinks from sources like local news outlets, industry directories (e.g., the Better Business Bureau), and collaborations with suppliers or subcontractors.

On-Page and Off-Page SEO

If you're targeting local leads, your Google Business Profile (GBP) is a game changer. About 46% of all Google searches have local intent, and 76% of people who perform a "near me" search visit a business within 24 hours. To make the most of this, ensure your GBP is optimized: choose accurate business categories, keep contact details consistent across directories, and regularly update photos. These steps signal to Google that your business is active and reliable.

Content strategy is just as crucial. Instead of creating isolated service pages, try a pillar-and-cluster model. For example, you could have a main page for "Home Remodeling" supported by subpages like "Basement Renovations" and "Attic Conversions." Each project page becomes an SEO asset when it includes specifics like materials used, timelines, and customer feedback. This approach not only improves rankings for broad searches but also captures detailed queries like "emergency plumber open now".

Lead Quality and Long-Term Results

When done right, SEO doesn't just bring in leads - it brings in better leads. In early 2025, construction businesses using SEO reported a cost per paying customer of $126.09, far lower than the $552.93 cost for paid ads. This is because organic search attracts people who are already searching for solutions, making them more likely to convert.

Another advantage? SEO builds momentum over time. A well-optimized service page created today can keep generating leads for years without requiring constant updates or additional spending. As Duane Martinez, an SEO Content Specialist, puts it:

"Visibility = trust = clicks = leads"

While SEO does take time - typically 4 to 12 months to show results - it creates a 24/7 lead generation engine that works independently of your daily marketing budget.

How Paid Ads Generate Leads for Construction Businesses

While SEO takes time to build momentum, paid ads offer almost instant results. Construction businesses can launch a campaign and start seeing leads flow in as quickly as 48 to 72 hours. This makes paid advertising an excellent option when you need immediate results - whether you're launching a new service, navigating a slow season, or adjusting to crew availability. The quick lead generation also allows for precise targeting, which is essential for maximizing your ad spend.

Paid ads let you place your business directly in front of homeowners actively searching for services. Instead of waiting for potential customers to stumble upon your business organically, you can target them where and when they’re looking. For example, a roofing contractor in Phoenix can focus on homeowners within a 5-mile radius searching for terms like "leaky roof repair" or "emergency roofer near me", ensuring your budget is spent on the most relevant leads.

Targeted Campaigns and Immediate Results

Appearing at the top of search results helps capture users with high buying intent. In fact, about 65% of clicks on commercial keywords go to sponsored ads. Tim Brown from Hook Agency sums it up well:

"Paid ads help you win today."

Another advantage of paid ads is the ability to pause campaigns instantly, giving you full control over your budget - something SEO doesn’t offer.

Local Services Ads (LSAs) are particularly powerful for contractors. These ads appear at the very top of Google search results, come with a "Google Guaranteed" badge, and operate on a pay-per-lead basis. This means you’re charged only when a customer calls, emails, or texts. In competitive fields like roofing, the cost per lead can range from $50 to $200, but these leads are often highly qualified. Combined with targeted campaigns, this approach allows for a more efficient use of your advertising budget.

Pay-Per-Click (PPC) Model

The PPC model allows you to bid on specific keywords and pay only when someone clicks on your ad. Costs vary depending on the type of service. For general contractors, clicks typically range from $4 to $9, while more competitive fields like commercial construction can cost $8 to $25 per click. Roofing, one of the most competitive niches, sees costs between $6 and $18 per click.

Despite these costs, the return on investment (ROI) can be impressive. Google PPC ads deliver an average ROI of 200%, meaning you earn $2 for every $1 spent. In the home services sector - covering trades like HVAC, plumbing, and electrical - paid ads achieved a closed return on ad spend (ROAS) of 4.4x in early 2025, with potential ROAS climbing to 10.2x when factoring in leads still in progress. A major factor in success is aligning your ad copy with your landing page. For instance, if your ad promises "24/7 emergency service", that exact phrase should feature prominently on the landing page to avoid high bounce rates.

Savvy contractors also use negative keywords to eliminate wasted spending. Adding terms like "free", "DIY", or "how to" ensures your ads don’t appear in searches from users seeking free advice rather than paid services. Retargeting campaigns are another effective tool, keeping your business in front of visitors who viewed your service page but didn’t convert. This is crucial, as today’s consumers often interact with an average of 5.5 online touchpoints before completing a lead form.

SEO vs Paid Ads: Key Metrics Comparison

To better understand the strengths of SEO and paid ads, let’s dive into the numbers. Construction businesses often weigh these strategies based on cost, lead quality, and long-term benefits. Between January 1 and April 24, 2025, CI Web Group analyzed data from home service businesses. Their findings? A $2.26 million spend on paid ads generated $10.08 million in revenue. Impressive, right? But here's the kicker: a $539,000 investment in SEO brought in $10.75 million in closed revenue - delivering nearly 5x the return compared to paid ads during the same period.

Think of PPC like renting an apartment - you’re paying month-to-month without building equity. SEO, on the other hand, is more like a mortgage. It requires upfront costs but eventually pays off, reducing per-click costs by 40–60% after 12–18 months. MarketinGear sums it up perfectly:

"PPC is like paying rent: a high monthly cost with no equity. SEO is like a mortgage: an investment that builds equity and eventually pays for itself"

Here’s the reality: paid ads demand constant spending. Stop paying, and the leads vanish. SEO, while slower to show consistent results, delivers ongoing benefits once your site ranks - essentially driving leads for free.

The numbers also highlight a key difference in lead quality. SEO leads in the trades close at 14.6%, compared to just 1.7% for outbound methods like cold calling. Meanwhile, emergency plumber clicks in metro areas can cost anywhere between $50 and $100, and roofing contractors pay $25 to $50 per click. For businesses starting out, a budget split of 60–70% PPC and 30–40% SEO is common, balancing immediate lead generation with long-term savings.

Comparison Table: SEO vs Paid Ads

Metric	SEO (Organic)	Paid Ads (PPC)
Lead Speed	Slow (4–9 months for results)	Instant (3–7 days)
Cost Structure	Monthly retainer/Fixed investment	Pay-per-click + Management fees
Long-term ROI	High (19.9x ROAS)	Moderate (4.4x ROAS)
Lead Quality	High (Trust-driven, high intent)	Variable (Transactional/Emergency)
Sustainability	High (Leads continue if spend stops)	Low (Leads stop immediately)
Conversion Rate	14.6% (trades)	1.7% (outbound methods)
Cost Per Customer	$126.09	$552.93
Best Use Case	Long-term brand authority	Urgent leads/Seasonal pushes

These metrics make one thing clear: pairing SEO and paid ads can deliver both immediate results and long-term growth. Danny H from RSM Marketing explains it best:

"If you need leads this week to keep your crews busy, PPC advertising through Google Ads is your fastest path... However, those leads come at a cost"

Up next, we’ll explore the pros and cons of each approach to help you decide which strategy aligns with your goals.

Pros and Cons of SEO for Lead Generation

Advantages of SEO

SEO helps build long-term digital value. Imagine it like owning a home instead of renting - once your site ranks well, it keeps bringing in leads even if you pause your spending. As the Content Bot explains:

"SEO is an investment that keeps paying dividends years after it's been done. Paid advertising is a faucet you turn off, and it stops immediately."

The stats back this up. SEO often delivers better-quality leads than outbound methods because people searching for terms like "emergency plumber" or "kitchen remodeling" are actively seeking solutions, not just scrolling through ads. Plus, about 70–80% of users skip paid ads entirely, preferring organic results. This trust in organic listings can directly lower your customer acquisition costs compared to paid ads.

Another benefit? SEO can expand your reach beyond local boundaries. Unlike word-of-mouth referrals, ranking for keywords like "roofing contractor in [city name]" allows you to tap into new markets. And you control the entire customer journey - from blog posts that educate prospects to service pages that seal the deal.

That said, SEO does have its challenges, especially when it comes to speed.

Limitations of SEO

SEO is not a quick fix. While it provides long-term benefits, the process takes time. Most businesses in industries like construction wait 4–9 months to see a noticeable uptick in organic leads, with the real payoff often coming after 12–18 months. Valor Web Agency compares it to setting up solar panels:

"SEO is like installing solar panels. It takes time to set up, but once it's running, it keeps working for free."

Keeping your rankings requires consistent effort - you need fresh content, strong backlinks, and regular technical updates. And Google’s algorithm updates can unexpectedly impact your traffic, leaving you with no control over when or how changes occur. Competing for competitive keywords like "kitchen remodeling" also means facing off against companies that have spent years building their authority.

The learning curve is another hurdle. SEO success demands expertise in technical optimization, content strategy, and link building - skills that most contractors don’t have in-house. Hiring an SEO agency or consultant can cost $750–$2,000 per month for local businesses, and it may take months before you see a return on that investment. If you need immediate leads to keep your team busy, SEO alone won’t cut it. Pairing SEO with paid ads during the first 3–6 months can help bridge that gap.

Pros and Cons of Paid Ads for Lead Generation

Advantages of Paid Ads

Paid ads can be a powerful tool for generating leads quickly, offering immediate visibility by placing your business at the top of search results as soon as the campaign launches. This is especially useful for targeting specific audiences, like homeowners within a 5-mile radius of your location, ensuring your budget is spent reaching the right people in your service area. Plus, the flexibility to adjust budgets in real time allows you to scale campaigns to meet sudden spikes in demand.

In the trades, paid ads deliver an average closed ROAS (Return on Ad Spend) of 4.4x, meaning every dollar spent brings back $4.40. The average job value from paid leads sits at $2,835.96. These ads are particularly effective for emergency services - think burst pipes or leaky roofs - where high-intent customers need immediate solutions.

Larry Kim highlights this advantage, saying:

"The beauty of paid ads is the ability to target the right customer at the right time"

Another major perk is the access to precise data. Metrics like cost per lead, conversion rates, and ROI are available at your fingertips, letting you fine-tune campaigns on a daily basis. However, these benefits don’t come without challenges.

Limitations of Paid Ads

For all their strengths, paid ads also come with some drawbacks. The most glaring issue? The moment you stop paying, lead generation stops entirely. As Leads Evolved puts it:

"The moment you turn your ads off, poof lead generation dies"

Unlike SEO, which builds long-term value, paid ads are more like paying rent - you’re shelling out money every month, but when you stop, there’s nothing left to show for it. They also tend to have a higher cost per customer compared to SEO, and in competitive metro areas, these costs can escalate quickly.

While 14% of local searchers choose businesses through Google Ads, a whopping 86% prefer organic listings. Adeel Arshad from MarketinGear warns:

"If your Contractor Paid Search Strategy isn't managed well, you can burn through cash fast. You pay for every single click, even the people just 'window shopping'"

These limitations make it clear that while paid ads can deliver quick results, they should be part of a balanced approach that includes longer-term strategies like SEO, as discussed earlier. Balancing short-term wins with sustainable growth is key.

When to Use SEO, Paid Ads, or Both

Choosing SEO for Long-Term Growth

SEO works best when you're playing the long game. It's ideal for projects like remodeling, custom builds, or commercial work where customers take their time to research - often over weeks or months. Within 12–18 months, SEO can slash your cost per lead by 40–60% and deliver a long-term return on investment (ROI) of 825%. Of course, patience is key - results typically take 4–9 months to show up.

For contractors, local SEO is especially effective. Showing up in the Google Maps 3-pack alongside strong organic rankings gives you a commanding presence in your area. To make the most of it, keep your Google Business Profile up to date with real project photos, accurate service areas, and a steady stream of positive reviews.

But what if you're looking for faster results? That’s where a different strategy comes into play.

Choosing Paid Ads for Immediate Results

While SEO is a long-term play, paid ads are all about speed. They’re perfect for generating quick leads - especially when launching a new service, entering a new market, or targeting emergency services like plumbing or HVAC. With paid ads, you can see results in as little as 3–7 days. For example, someone searching for "burst pipe repair" or "AC not working" is ready to hire on the spot.

Paid ads also shine during seasonal spikes. Let’s say a storm just hit your area, causing widespread roof damage. Adjusting your PPC budget to capture this surge in demand is far more effective than waiting for SEO to catch up. In competitive metro areas, where keywords like "roofing contractor" can cost over $75 per click, paid ads are often necessary to secure visibility above the fold and stay competitive.

Eric Siu from Single Grain sums it up perfectly:

"The most powerful digital marketing strategy isn't choosing between SEO and paid ads - it's understanding how to leverage each at the right moment in your business cycle to create compounding growth"

By balancing immediate needs with long-term goals, many businesses find that combining both strategies delivers the best results.

Combining SEO and Paid Ads

When you integrate SEO and PPC, you dominate search results. This dual approach ensures both organic and paid visibility, increasing brand recognition and clicks by 31% compared to relying on organic traffic alone. It’s about blending long-term strategies with quick wins to maximize your lead generation efforts.

A smart way to start? Allocate 60–70% of your budget to PPC and 30–40% to SEO during the first 3–6 months. While paid ads generate immediate revenue, your SEO strategy quietly builds in the background. Use data from your PPC campaigns to identify high-converting keywords, then create SEO content around those terms. As your organic rankings improve, you can shift more of your budget toward retargeting or bidding on high-profit keywords.

Hook Agency puts it best:

"SEO builds the base. Ads bring the boost. Together, they keep your pipeline full and your brand visible"

This combined strategy also acts as a safety net. If an algorithm update impacts your organic rankings, paid ads can keep your visibility intact. On the flip side, if ad costs rise, your strong organic traffic can help balance the budget.

Tools to Optimize SEO and Paid Ads

The right tools take the guesswork out of marketing by providing data to fine-tune your keywords and budget. Platforms like Google Ads and SEMrush make it easier to identify what’s working, fix what isn’t, and attract better leads without wasting money.

Using Google Ads for Paid Campaigns

Google Ads offers two main options for contractors: Local Services Ads (LSAs) and traditional Search Ads. LSAs operate on a pay-per-lead basis, meaning you only pay when someone calls or messages you - not just for clicks. Plus, LSAs allow your business to earn the "Google Guaranteed" badge, which builds instant trust by showing potential customers that your business has been vetted.

Search Ads give you more control over targeting. For instance, you can focus on homeowners within a 5-mile radius of your office to minimize travel time and stay local. Features like Performance Max and Value-Based Bidding use AI to ensure your budget is allocated to the most promising leads. By integrating your CRM with Google Ads Data Manager, you can track ad-driven conversions and measure success.

Some quick tips for better results:

• Use negative keywords (e.g., "construction jobs", "free DIY repair") to avoid irrelevant clicks.
• Retarget users who didn’t convert the first time.
• Run A/B tests on landing pages to see what drives higher conversion rates.

Using SEMrush for SEO

For organic growth, SEMrush is a go-to tool that sharpens your SEO strategy. The Keyword Magic Tool helps you pinpoint opportunities by filtering keywords based on Keyword Difficulty (KD%). Look for "Easy" or "Very Easy" keywords with high search intent but low competition. If you find a keyword with a high cost-per-click (over $2.00) but low difficulty, you can focus on ranking for it organically instead of paying for every click.

The Advertising Research Tool lets you dig into your competitors’ strategies. You can see which keywords they’re bidding on, how much they’re spending, and even their ad copy and landing pages. This insight helps you refine your own content and address similar customer pain points. Meanwhile, the Position Tracking feature keeps tabs on your keyword rankings over time, so you can tweak your strategy as needed.

Tim Brown, Founder of Hook Agency, highlights the power of SEO:

"SEO leads close at a rate of 14.6%, compared to 1.7% for outbound methods. That's about eight and a half times higher conversion, proof that inbound marketing pulls in warmer, more serious buyers."

BrodyFilmedIt: Custom SEO and Paid Ads for Construction Growth

Why Choose BrodyFilmedIt?

BrodyFilmedIt takes a smart, tailored approach to marketing for construction businesses by blending long-term SEO strategies with the immediate impact of paid ads. This hybrid method ensures you’re not only generating leads today but also building a strong foundation for organic growth in the future. Instead of sticking to rigid budgets, they adjust spending based on your market conditions and business growth stage, ensuring every dollar works as hard as possible.

Their expertise lies in helping construction and service-based businesses target the right audience. Using precise geo-targeting, they focus on areas within a 15–30-mile radius of your business or specific high-value ZIP codes where your ideal clients are located. By analyzing data from your paid campaigns, they identify the top-performing keywords and create SEO content around them. Over time, this helps reduce reliance on ads while maintaining visibility. The ultimate goal? To help your business dominate search results - showing up in paid ads, local map packs, and organic listings all at once. This cohesive strategy is backed by a full suite of integrated services designed to deliver both quick wins and sustained growth.

BrodyFilmedIt Services for Lead Generation

BrodyFilmedIt offers a comprehensive range of services tailored to construction businesses. Their custom website designs are built with mobile users in mind, ensuring fast load times and SEO readiness to capture leads on the go. They also specialize in video production, creating everything from brand videos and YouTube content to short-form clips for social media - perfect for showcasing your work and building trust quickly.

Their team focuses heavily on local search optimization, managing Google Business Profiles, and crafting keyword-driven content to rank high for searches like "roof repair near me." On the paid advertising side, they run campaigns across Google, Meta, and YouTube, utilizing retargeting to re-engage visitors who didn’t convert initially. Additional services include event coverage and content strategy, helping you maintain a consistent social media presence and keeping your brand top-of-mind. Together, these services create a cohesive system designed to maximize results without wasting your marketing budget on disconnected efforts.

Conclusion: Deciding the Best Strategy for Your Business

Choosing between SEO and paid ads is all about understanding your business's current needs and long-term goals. If you’re looking to fill your calendar quickly or launch a new service, paid ads can provide that immediate visibility. On the other hand, if your focus is on building a steady stream of leads without constantly relying on ad spend, SEO lays the groundwork for long-term success.

The most strategic construction businesses don’t view this as an either-or decision. Instead, they combine the strengths of both approaches - using paid ads for quick results while investing in SEO for sustained growth. As Tim Brown from Hook Agency explains:

"SEO builds the base. Ads bring the boost. Together, they keep your pipeline full and your brand visible".

To make the right choice, rely on data, not assumptions. Track what actually leads to booked jobs rather than just clicks or impressions. Tools like CallRail or HubSpot can help you pinpoint where your most profitable leads originate. For example, if you’re spending $200 per click on "roof replacement" ads but notice your organic ranking for the same term improving, it might be time to shift some budget toward content that continues to deliver without ongoing costs. Regularly monitor your lead metrics and adjust your strategy based on what the numbers tell you.

For construction and service-based businesses, finding the right balance often requires industry-specific expertise. That’s where BrodyFilmedIt comes in. They specialize in blending the immediate impact of targeted paid campaigns with the lasting benefits of local SEO. Whether you’re starting with ads and planning to grow organically or need a comprehensive system that does both, partnering with someone who understands your industry can turn marketing efforts into real revenue.

FAQs

How do I know if my leads are “good” leads?

Good leads are the ones most likely to turn into paying customers and match your ideal target audience. Some key signs to look for include where the lead came from, how engaged they are, and whether they've expressed specific needs that align with your business. For instance, leads generated through SEO often show stronger intent because they’re actively searching for solutions you provide. To assess lead quality and profitability, consider factors like conversion rates, average purchase value, and how well they align with your products or services.

What budget split should I start with for SEO vs ads?

Allocating your budget effectively is key. A solid approach is to dedicate 60-70% of your budget to SEO for building long-term growth and 30-40% to paid ads to achieve quicker results. However, this isn't a one-size-fits-all formula. Your specific goals, how competitive your industry is, and the timeline you're working with should all influence this split. Make sure to consistently test and track your performance - this will help you fine-tune your strategy as you go.

Should I run Local Services Ads or regular PPC?

Local Services Ads are perfect if your goal is to quickly attract high-quality leads from nearby customers. On the other hand, traditional PPC campaigns, such as Google Ads, give you more control over your campaigns and are better suited for targeting a broader audience or capturing immediate demand. Your choice depends on your objectives: go with Local Services Ads for a focused, fast-acting local strategy or PPC if you need flexibility and a wider reach.