“Should we invest in SEO or ads?” is the wrong question. Both have their place. But they have different logic — and different phases.

The analogy that’s often used is that SEO is like owning a home while ads are like renting. Both put a roof over your head — but one is an asset that accumulates value, the other is an operating cost that has to be paid every month. A sensible business wants both, but prioritises building the asset first.

Here’s how to think about it correctly.

The fundamental difference

Organic visibility (SEO):

  • Slow to build (3-12 months for noticeable effect)
  • Rent-free once established
  • Builds a durable asset
  • Doesn’t stop when you stop working

Paid visibility (Ads):

  • Quick to activate
  • Expensive per click (continuously)
  • Rented traffic
  • Stops when you stop paying

Two different types of investment.

Phases in building visibility

Phase 1 (months 1-6): 100% organic

For new businesses or businesses that haven’t done the foundation work:

  • Optimise GBP
  • Build the website
  • Establish a review strategy
  • Start on social media

Ads can’t compensate for a missing foundation.

Phase 2 (months 6-12): 80% organic + 20% ads

When the foundation is starting to work:

  • Test budget for ads (2,000-5,000 SEK/month)
  • Measure what generates the best ROI
  • Keep building organic

Phase 3 (12+ months): 70% organic + 30% ads

Established strategy:

  • Scaled ad budget with proven ROI
  • Organic continues to strengthen
  • Ads cover specific gaps

Never 100% ads

That’s dangerous for three reasons:

1. Constant costs. Stop paying = visibility disappears.

2. No accumulated value. The money goes out without building anything long term.

3. Algorithm exposure. A change in Meta or Google’s ad system can dramatically affect returns overnight.

Organic = asset. Ads = cost. You want both — but prioritise the asset.

Concrete Swedish example: what happens when ads stop

A small Swedish e-commerce we’ve talked to — sellers of specialised children’s products — had for several years put 80% of their marketing budget on Google Shopping ads. Good ROI during operating periods. When they paused advertising to evaluate the market for a month, visitor volume dropped by 75% immediately. The organic base was too weak to carry the business.

The more extreme example is e-commerce companies like Klarna or Boozt, which have billion-krona revenues but where ad spend is so central to the model that a sharp reduction would immediately hurt sales. That’s a sustainable model if you have capital and margin — but for a local solo or small business it’s a dangerous position.

The lesson: renting traffic is fine, but renting all of your visibility is to stand without your own protection the day the ad economy changes.

When ads are especially valuable

Keywords you can’t rank organically for. E.g. “lawyer Stockholm” if you’re a new lawyer. Organic ranking there takes years. Ads can give visibility while SEO builds.

Season-specific campaigns. “Ahead of summer” or “Black Friday”. Temporary visibility boost.

Specific offers. A new service or product — ads give quick awareness.

Geographic expansion. A new city or area — ads are the fastest path to visibility while organic builds.

A competitor hijacking the brand name. If a competitor advertises on your business name (legal in Swedish ad practice as long as they don’t claim to be you) — then you should budget for your own name to defend the top position. Clicks on your own brand name are typically cheap and high-converting.

How SEO and ads work together

A common misconception: that ads and organic would “compete” for the same traffic. In practice they complement each other in several ways:

Ad data informs SEO strategy. Which keywords convert best in Google Ads? Those are the keywords you want to rank organically for over time. Ad data after 60 days is often more valuable than any keyword analysis.

Presence on multiple positions. If you rank organically in the Local Pack and have a search ad at the top, you take double position on the search results page. This is expensive but extremely visible — useful for competitive keywords.

Retargeting on organic traffic. Visitors who found you via search can be retargeted via Meta or Google Display afterwards. The first contact is free (organic), the follow-up is paid.

Brand search after content marketing. A person who reads one of your articles via Google search may days later search for your business name. Then you’re glad if you show up as ad + organic + GBP button.

Thinking of SEO and ads as separate silos misses these synergies.

When ads are a waste

  • When GBP is incomplete
  • When the website doesn’t convert
  • When measurability is missing
  • When the budget is too small to collect data

The practical first step

Rank your current visibility investments:

  1. Google Business Profile work: organic, cheap, high ROI
  2. Website optimisation: organic, one-off, high ROI
  3. Review strategy: organic, cheap, high ROI
  4. Content/blog: organic, time-intensive, medium ROI
  5. Social media: organic, time-intensive, variable ROI
  6. Ads: expensive, quick, measurable ROI

Invest your time/money in that order. Ads come last — after the foundation is in place.

Want to go deeper? Read When Google Ads is worth it or Showing up on Google in your city.