SEO vs PPC: A Model To Determine The Most Effective Digital Marketing Budget Division
Proceedings of the 3rd International Conference on Social Sciences.
Weideman, M. 2017. SEO vs PPC: A Model To Determine The Most Effective Digital Marketing Budget Division. Proceedings of the 3rd International Conference on Social Sciences. 09 September-10 September. Istanbul, Turkey.
Many search engine marketing campaigns channel most of the budget towards pay-per-click (PPC)
schemes, with a small fraction going towards search engine optimisation (SEO). This research aimed at
finding the best way to allocate a marketing budget across these two platforms. Firstly, a comparison was
made between high-ranking websites to see how PPC and SEO respectively have been applied. It was found
that an investment in SEO was seldom made. Secondly, the cross-over point between expenditure on the two
systems was determined in a case study. It was determined that the website traffic crossed over after around
three months, and the expenditure after six months. From this point onwards SEO became more cost-
effective. Finally, the cost per acquisition (CPA) was determined for both PPC and SEO. Results show that
the CPA for SEO was significantly lower than for PPC, in all the test cases investigated. In conclusion, a
dual approach is proposed. A model was designed, which could be applied to design a cost-effective search
engine marketing strategy. When applying this strategy correctly, expenditure will be reduced and yield
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