Google Ads vs Local SEO: Which Should Local Businesses Prioritize?

At Sixo Agency, one of the questions I hear most often from small business owners is:

“Should I spend my marketing budget on Google Ads, or should I focus on Local SEO?”

It’s a fair question. Digital marketing isn’t optional anymore—it’s essential. Local businesses are competing not only with their neighbors down the street, but also with online retailers and national chains who have deep pockets and brand recognition. For the small business owner trying to grow in today’s market, the path forward isn’t always clear.

In a perfect scenario, you’d invest in both Google Ads and Local SEO, and maybe add in some social media advertising for good measure. But most businesses don’t have unlimited budgets. They’re forced to decide: Do I want quick wins, or do I want long-term growth?

That’s where the debate between Google Ads and Local SEO really begins.

The Case for Google Ads

To help unpack this, I asked a few experts for their perspectives.

One PPC specialist I spoke with didn’t hesitate to argue for Ads:

“If you need leads tomorrow, Google Ads are your best bet. They put you instantly at the top of the search results, right where customers are looking. For businesses in competitive industries like plumbing, dental, or legal services, that visibility can mean the difference between landing a customer today or losing them to a competitor.”

They’re right—Google Ads offer immediate exposure. With search ads, display ads, and Local Service Ads (Google’s pay-per-lead format), businesses can quickly appear above organic listings.

For industries where timing matters—like emergency plumbers, HVAC companies in a heat wave, or legal services—being visible instantly can be critical. You can launch a campaign today and get phone calls tomorrow.

But there’s a catch: Ads are rented space. Once you stop paying, you vanish. Costs can also add up quickly. Clicks in competitive markets can run $20, $50, or more. And while Google Ads can deliver conversions, they require constant management, optimization, and a healthy budget to remain sustainable.

The Case for Local SEO

On the flip side, I also spoke with Christiaan, an SEO consultant, who made a very different case:

“Google Ads are like renting space—you stop paying, you disappear. Local SEO, on the other hand, is like owning the land. It takes longer to build, but once your business ranks, you get ongoing traffic without the per-click costs. Plus, customers tend to trust organic results more than ads.” – Christiaan., Local SEO Consultant

Christiaan highlights what I often remind clients: SEO is an investment, not a rental.

Local SEO involves optimizing your website, creating content, building local citations, and managing your Google Business Profile. It’s not instant—results can take 3–6 months to really kick in—but once you rank, you get sustainable traffic without paying per click.

Customers also tend to trust organic results more. In fact, studies show that organic local listings get 3–5 times more clicks than paid ads. Part of that is “ad blindness”—the tendency of users to scroll past paid results. And part of it is trust: people see organic rankings as more credible.

Local SEO also compounds over time. A blog post you write today, or a Google review you collect this week, can keep working for you months or years into the future.

Cost Considerations

When clients ask me which approach costs less, I usually say: It depends on your time frame.

• Google Ads have a low barrier to entry—you can start with a small daily budget. But because of the pay-per-click model, costs never stop. If your cost-per-click is $10 and you get 500 clicks a month, that’s $5,000 in ad spend—every month.
• Local SEO typically requires a larger upfront investment: website optimization, content creation, link building, and review management. But once you’re ranking, you’re not paying Google for each individual click. In the long run, SEO often proves more cost-effective.

Local Services Ads (LSAs) can be a middle ground with their pay-per-lead model, but not every industry has access to them.

Visibility & Click-Through Rates

Visibility is another area where the two strategies diverge.

• Google Ads appear right at the top of search results, often above organic results and even maps. They’re perfect for grabbing attention quickly.
• Local SEO places you in the “Local Pack” (the map listings) and organic search results, which studies show attract significantly more clicks than ads.

To put numbers behind it: only 19.8% of users click on paid ads, while 28.5% click on organic results. That gap might seem small, but over time, it’s huge.

Consumer Behavior & Conversion Rates

Google Ads often convert well because they capture people in the moment of intent—especially for industries where urgency matters. In fact, conversion rates for paid search ads can hit 10.4% for dental services and 7% for legal services, which is strong.

But SEO holds its own when it comes to ROI. Research shows that SEO returns an average of $22 for every dollar spent, thanks to the sustained traffic it generates. While it takes longer to build, SEO supports brand trust, authority, and loyalty—qualities ads can’t buy.

The Role of Mobile Searches

Whichever side you’re on, one thing is clear: mobile dominates.

• 84% of local searches happen on smartphones.
• 76% of people who search for something nearby on mobile visit a physical store within 24 hours.
• 78% of mobile local searches lead to a purchase.

That means whether you’re investing in Ads or SEO, you need to be mobile-first. Fast-loading websites, click-to-call buttons, and optimized Google Business Profiles are non-negotiable.

Why Google Business Profile Matters

Speaking of Google Business Profile—this is one area where SEO and Ads overlap.

A fully optimized profile:

• Boosts visibility in both the Local Pack and Ads.
• Attracts 4x more website visits.
• Builds trust through reviews (businesses with 200+ reviews rank higher).

Whether you lean into Ads or SEO, your profile is the foundation of local visibility.

My Take (and What I Tell Clients)

Both experts I spoke to are right—Google Ads and Local SEO each have their place.

• If you need leads tomorrow, Ads are the way to go.
• If you want sustained growth, SEO is worth the investment.

But the real power comes from combining them. Ads buy you immediate visibility while SEO builds a foundation for the future. Together, they create a balance of short-term wins and long-term sustainability.

At Sixo Agency, I help clients design strategies that use both in tandem. We often use insights from Google Ads campaigns to refine SEO strategies (for example, discovering which keywords convert best). And we use SEO to reduce reliance on Ads over time, lowering overall cost-per-acquisition.

Final Thoughts

If you’re a local business owner weighing your options, start with this question:

Do I need calls and customers immediately, or am I ready to invest in building a long-term brand presence?

The honest answer for most businesses is: a little bit of both.

By leveraging the immediacy of Google Ads alongside the staying power of Local SEO, you can maximize visibility, capture more leads, and build a sustainable marketing engine that works for you today and tomorrow.