Small businesses almost always face the same question: should they spend money on advertising or can they do without it?
Beauty salons, dentists, bakeries, coffee shops, service companies and local studios are faced with the choice every day - invest budget in advertising or bet on SEO, recommendations and organic traffic.
Advertising can give quick results, but often «eats up» the budget with no long-term effect.
SEO is slower, but brings in customers consistently and is cheaper in the long run.
So what to choose? And most importantly - when is advertising really necessary, and when does it become a waste of money?
In this article, Kakadoo tackles the topic of advertising for small businesses as honestly as possible: with figures, examples, comparison of SEO and advertising, real-life scenarios and practical advice.
Advertising or SEO - which is more beneficial for small businesses in reality
To answer the question, you need to understand one important thing:
Advertising and SEO solve different problems and work at different stages of business development.
SEO is the foundation!
SEO is the optimisation of a website for search queries:
small business + city, service nearby, local company, beauty salon area, etc.
SEO Gives:
- steady traffic;
- long-term effect;
- trust from Google and users.
Advertising is an accelerator.
Ads (Google Ads, Meta, local ads) gives:
- fast applications;
- scalability;
- traffic volume control;
- flexibility for promotions and seasonality.
It's a small business mistake to run an advert without an SEO base: no website, no analytics, no clear offerers.
When a small business has enough SEO and advertising is not necessary
There are situations where SEO completely closes the need for customers and advertising is either unnecessary or minimally used.
SEO is enough if:
- the business operates locally (district, city);
- the niche is not over advertised;
- has a quality website;
- properly configured local SEO;
- there's a Google Business Profile;
- customers search for a service in search.
Numerical example:
Beauty salon in the city of up to 100 thousand inhabitants.
- SEO budget: 300-600 € per month
- Average CTR from Google: 15-25%
- Cost per lead: 2-5 €
- Leads are stable 24/7
After 3-5 months, the site begins to bring customers on its own without constant investment in advertising.
Conclusion:
If:
- you don't want to «burn the budget.»;
- business is stable;
- there's no aim to scale up dramatically -
SEO for small businesses is more profitable than advertising.
When you can't do without advertising: real-life scenarios
Now honestly: there are situations where advertising for small businesses is really necessary.
Advertising is needed if:
- The business is new and the site is not yet in the top;
- high competition;
- you need to fill out a record quickly;
- there are seasonal promotions;
- a new service is being launched;
- we need to test the demand.
Numerical example:
Dentistry is launching a new service - implants.
- Google Ads: 800 €
- Click price: 2-6 €
- Website conversion: 5-8%
- Lid price: 25-60 €
- Average cheque: 1 500-3 000 €
Even with an expensive lead, advertising pays off if the site and offer are done right.
Important:
Advertising doesn't work on its own.
Without:
- of a good website;
- understandable prices;
- reviews;
- quick recording -
it turns into a budget drain.
How much advertising costs for small businesses and how not to lose money
One of the most popular queries is «how much does it cost to advertise for a small business».
The answer always depends on the niche, region and strategy.
Medium budgets:
- Local service: 300-800 € / month
- Beauty salon: 400-1 000 €
- Dentistry: 800-2,000 €
- Bakery / cafe: 200-600 €
But the problem isn't the amount, it's the preparation.
Typical Small Business Mistakes:
- running adverts without a website;
- advertising without analytics;
- lack of an offerer;
- advertising without an SEO foundation.
As Kakadoo recommends doing the right thing:
- Website + SEO structure first
- Then there's the adverts as an amplifier
- Mandatory analytics
- Testing, not «faith in luck.»
- Combination of SEO + advertising
📈 The most profitable strategy:
- SEO = steady stream of customers
- Advertising = fast applications and growth
Together, they produce maximum results.
For small businesses, advertising is not a mandatory expense, but a tool that should be used consciously and at the right time. In most local niches, SEO gives a more stable and profitable result: the site begins to bring customers from search on a regular basis, the cost of an application decreases, and the business is no longer dependent on advertising budgets. However, advertising becomes indispensable when rapid growth is required, launching a new service, filling an entry or testing demand. It's important to realise: advertising without a website, analytics and SEO framework almost always results in losing money. The most effective strategy for small businesses is a combination of SEO as a foundation and advertising as an amplifier. It is this approach that allows you to control costs, predict results, and build a steady stream of customers, not one-off requests!
