This is the reality for many SMEs in Malaysia: a tight marketing budget, a genuine need for new customers, and two different digital marketing channels competing for the same ringgit spend – SEO and Google Ads.
Both promise Google visibility and customer traffic, but they work very differently, at very different times, and for very different business outcomes. Choosing the wrong one at the wrong time can mean throwing money down a drain and setting back your business growth plans by months.
So, what should Malaysian SMEs focus on first? Well, the hard truth is it depends on where you are right now as a business. And with the right framework, you’ll find the answer is more obvious than you might expect.
So, what is SEO and Google Ads?
Before making a choice, it is helpful to understand what you are really choosing between. For many business owners, they are similar because they appear on the same page of Google.
SEO stands for Search Engine Optimisation and is all about increasing your website’s organic presence on search engines. If you do it right, you’ll find yourself on the free listings section of Google – below the paid ads. These listings are based on a variety of factors, including the quality of your website and other credible sources.
Google Ads, formally known as Google AdWords, is a paid advertising service where you can pay for a prime spot at the very top of Google for specific keyword searches. You pay for every single click (PPC), and it is immediate – your advert could appear within hours of launching a campaign.
The big difference is that SEO is a long-term play – its benefits compound over time. Google Ads is a short-term play – it works for you as long as you keep paying and stops as soon as you stop.
So, neither is better than the other – one is more appropriate for you right now, based on where you are and what you need.
Starting with Google Ads Makes Sense for Malaysian SMEs
If you are a small and medium-sized business based out of Malaysia, especially if you are just starting out or entering a new market, starting with Google Ads makes sense. Let’s take a look at the rationale for this, as it pertains to your business.
The Importance of Speed to Market for New Businesses
If you are a business that has been around for less than a year or have just rolled out a brand-new product or service, you need to be visible today, not six months from now.
The fact of the matter is that SEO takes time. It simply does not make sense for Google to crawl your site, go through all your content, and figure out how you compare to the big boys and girls overnight.
It can take anywhere from three to six months before you start seeing the fruits of your labor with respect to SEO. If you are a business that needs to make money and generate leads right now, this delay just doesn’t make sense.
The Intelligence You Will Gain from Google Ads that You Will Never Find with SEO
One thing that marketers often fail to realize, especially the more experienced among them, is that starting with Google Ads and moving into SEO makes the latter effort far more effective.
For instance, when you start with Google Ads, you will gain access to the following intelligence: you will be able to figure out which keywords drive the most conversions for your business, and you will be able to determine the cost per acquisition for each of these terms.
Instead of going into SEO and trying to figure out which keywords you should be targeting, you will have the intelligence you need to make this effort far more effective. It makes sense to consider Google Ads as an expensive and sophisticated research tool.
Testing Offers, Ads, and Landing Pages in Real-World Conditions
Google Ads can be used to test your offers, ads, as well as your landing page design in real-world conditions. If your value proposition resonates with the people of Malaysia or your call to action results in a much higher conversion rate, you can incorporate that into your SEO content before investing a great amount of money in it.
This stage of testing will be very helpful for businesses that have not yet fully figured out their position in the market of Malaysia.
Why Start with SEO
There are many reasons to prefer SEO in Malaysia over Google Ads. But there are certain scenarios in which SEO in Malaysia will be your best bet.
Your Business Has Time but a Limited Ongoing Budget
Google Ads require continuous spending to keep delivering results. For many SMEs in Malaysia with limited marketing budgets, this creates a problem. If the spending on ads stops for some reason, the results will stop at once.
SEO, however, requires a one-time investment in assets that will keep delivering results for your business in the long term.
A page that ranks on the first page of Google today can keep delivering results for your business in the long term without requiring you to spend another ringgit. If you have the patience to wait for results and are willing to take a long-term view, SEO will give you a much higher return on investment.
Neil Patel, a renowned name in the digital marketing world, states that SEO results actually get better with time whereas the cost remains roughly the same.
Your industry is one where Google Ads can be very unforgiving in terms of cost per clicks
There are some industries in Malaysia where Google Ads can be very unforgiving in terms of cost per clicks. Industries such as legal, financial, insurance, property, and healthcare are examples of such sectors.
If you are in any of these industries and your competitors have more ad spend, then trying to compete against them in Google Ads is not advisable. This is especially true if you are a small and medium enterprise.
Instead, you can consider a targeted freelance SEO marketing strategy in Malaysia for these industries, and you can enjoy a much more favorable cost per acquisition than what Google Ads can offer.
You are not just trying to make a sale, you are trying to build a brand
There is a big difference between needing to make a sale and wanting to build a brand. Google Ads is perfect for making a sale, but not so much for building a brand.
SEO, meanwhile, is perfect for building a brand and can also help make a sale. If your goal is to build a brand, then you should consider a targeted freelance SEO marketing strategy in Malaysia, and you can enjoy the advantage of using Google Ads at the same time.
When both Google Ads and SEO can be used
If you are a well-resourced SME in Malaysia, then the best way to use Google Ads and SEO is in a phased manner, such that both tools can complement and work together to help your marketing strategy.
Here’s the process in more detail, as it plays out in real life:
Months 1-3: Launch Google Ads to generate instant traffic and capture leads. Use this period to collect data, test your copy, and identify your most profitable target audience segments. Meanwhile, lay the foundation for your SEO campaigns by performing a technical audit, keyword research, optimizing your on-page elements, and creating initial content.
Months 4-6: Continue running Google Ads while your SEO campaigns begin to show initial results. As you begin to rank for some keywords, you can scale down your ad spend on those terms and redirect those budget dollars to terms where you haven’t had a chance to rank organically.
Months 7-12: As your SEO campaigns become more prominent and more keywords begin ranking in the top 10, you can stop relying on Google Ads for those terms. Instead, you can redirect those budget dollars to the most competitive terms where your SEO campaigns haven’t been able to reach the top 10.
After 12 months: At this point, your campaigns would have matured, and your SEO campaigns would now drive most of your organic traffic and leads at a fraction of the cost per acquisition, while Google Ads would be used for high-value terms.
The Budget Reality for Malaysian SMEs
Before we dive into the budget realities, we need to consider the numbers, and this is where most digital marketing strategies fall flat.
For most Malaysian SMEs, a Google Ads budget that is substantial enough to generate meaningful results, such as sufficient impressions and clicks to generate useful data and a steady stream of leads, would begin at around RM1,500 to RM3,000 monthly, depending on the industry and geographic target.
A professional SEO project in Malaysia, whether you work with an agency or a seasoned freelance SEO professional, will typically begin at a rate of about RM1,500 to RM3,000 per month for a solid and well-executed SEO strategy. If you’re spending less than that, it may be a sign that the work isn’t detailed enough to make a real impact against established competitors.
The biggest financial difference will be in the long term. Your Google Ads cost per lead will remain the same or increase as more competitors join in. Your SEO cost per lead will decrease as you move up the search engine ranks and more people visit your site due to compounded organic search traffic.
If we project three years out, SEO will generally provide a better ROI on investment compared to Google Ads spending. In the short term, Google Ads will generally provide faster and more predictable results.
Questions to help you make a decision
If you’re still undecided on which advertising channel to prioritize with your next marketing budget, ask yourself:
- How soon do you need these leads? If you need them in two to three months, Google Ads is where you should start investing.
- How new is your website? If it is brand new and you have yet to develop domain authority, you need to consider Google Ads as you work on developing a strong foundation for your website.
- How much is each customer worth? If you have very lucrative customers, you might want to wait longer for Google Ads and SEO to generate more leads for you.
- How competitive is your market? Check the cost per click for your target keywords. If it is too expensive, you might want to consider SEO as it might be the only option for you.
- Can you wait for one year? If you know you can’t wait any longer and you need to stop investing in SEO after three to four months due to budget constraints, you might want to consider Google Ads more seriously as it is more likely to generate more leads for you sooner.
What the Data Tells Us about Organic vs. Paid Search
The Channel Performance Report by BrightEdge tells us that organic search generates about 53% of website traffic across all industries, while paid search generates about 15%. This tells us that the obvious truth still holds: most people click on organic search results on Google, not ads.
In fact, we see that most high-intent searchers, who are ready to buy or hire a service, click on organic search results more often than paid search ads for most search types. This is particularly important in Malaysia, especially in the realm of Malaysian B2B services and other professional and considered-purchase consumer search types.
The bottom line is that there is no one-size-fits-all answer that will work for every Malaysian SME, at least not based on the information we have so far. However, what we do know is that every Malaysian business needs to use both organic and paid search at some point in their journey.
The real question is which one to prioritize first and to what extent, based on our current situation and needs.
If you need leads now and are new to the market, or want to test keywords before launching an organic search campaign, Google Ads is the way to go. However, if you are in this for the long haul, in a high CPC industry, or want to create a brand that is based on content and expertise, SEO is the way to go.
Or, better yet, work with an experienced SEO and digital marketing professional who understands the Malaysian market and can help you develop a comprehensive strategy that includes both organic and paid search. That will be the best investment you can make in your online success.
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