Paid Search (PPC) can be a very effective way to approach search engine marketing, many companies have a great ROI on paid search. However, over the long haul it is wise to "invest" in Organic SEO to obtain organic positions and here's why...
Competitive Advantage - the barrier of entry is extremely low when it comes to the paid search game. In fact, anyone with a checkbook can become your competitor. PPC is a bidding system which means these random competitors can drive the cost per click (CPC) up and therefore drive up your cost per lead (CPL). There's also nothing stopping these competitors from copying your ads word for word...Google doesn't care because they are going to be the financial benefactors of the bidding wars.
Own -vs- Rent - Paid search is the equivalent to "renting" a spot on the front page of Google versus an organic position which is is the equivalent of "owning" a piece of real estate on Google's front page. There's only 10 spots on the front page of Google and it is prime real estate for marketers. As time goes by it's just going to get more and more difficult to secure a place in one of those coveted positions organically.
Company Equity - High organic rankings are an asset and can increase the overall valuation of a company.
The bottom line is that by securing high organic rankings for keywords that make you money is going to give you the following advantages:
1. It's hard to duplicate organic rankings, it will create a much higher barrier of entry for your competitors.
2. Your company will no longer be held hostage to the costly bidding wars associated with paid search.
3. Your cost per lead (CPL) will be much lower than paid search and therefore your cost per acquisition (CPA) will be much lower.
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