PPC Vs SEO In Singapore: Which Strategy Delivers Better ROI?

PPC vs SEO: What are the Key Differences?

Pay-per-click (PPC) Advertising is a paid digital marketing strategy in which advertisers pay a fee each time someone clicks on their ad. Meanwhile, search engine optimisation (SEO) optimises a website to rank higher in organic, unpaid search engine results. 

When businesses in Singapore want to boost their online visibility, PPC and SEO are two of the most common digital marketing strategies they consider. Both approaches are highly effective in driving traffic to your website, but they operate differently.

While PPC delivers immediate visibility through paid ads, SEO optimises a website to rank higher organically in search engine results. Each method has its strengths, but the key question many businesses face is: which delivers better ROI?

To help you make the best choice for your business, this piece will guide you through:

• Key Differences of PPC and SEO
• How PPC Works and Its Benefits
• How SEO Works and Its Benefits
• Factors Influencing ROI in Singapore
• ROI Analysis of PPC vs SEO
• Case Studies

Let’s first explore the key differences between PPC and SEO. For easy understanding, below is a matrix comparing the two according to different aspects:

Aspects	PPC (Pay-Per-Click)	SEO (Search Engine Optimisation)
Cost	Costs incurred every time someone clicks on an ad	There are no direct costs per click, but requires investment in optimisation and content creation
Timeframe for Results	Immediate visibility and results	Takes time to see significant organic ranking improvements
Longevity of Results	Short-term: results stop once the campaign ends	Long-term: continuous organic traffic with regular SEO maintenance
Placement on SERPs	Ads appear at the top of search results (above organic)	Organic listings appear below paid ads but are more trusted by users
Traffic Volume	Can generate high traffic instantly if the budget allows	Builds traffic over time; tends to have a more consistent flow once rankings improve
Click-Through Rate (CTR)	Lower CTR due to user’s preference for organic	Higher CTR because users trust organic listings more than paid ads
Conversion Rate	Can have higher conversion rates due to targeted ads	Conversion rates can vary based on relevance, ranking, and user intent
Best Suited For	Short-term campaigns, promotions, and driving immediate traffic	Long-term brand building, sustained traffic, and organic lead generation
Trust and Credibility	It is seen as an ad, which some users may ignore	Seen as more credible and trustworthy by users who prefer organic results
Cost Efficiency	Can be expensive in competitive industries due to high CPC (Cost-Per-Click)	Most cost-effective in the long run, especially for competitive keywords
ROI (Return on Investment)	Provides quick ROI if well-optimised, but costs can reduce profitability	Higher long-term ROI, but with a delayed payback period

To illustrate the two digital marketing agencies, here is a photo displaying PPC and SEO in action:

Understanding PPC and SEO

Now that you know the differences between PPC and SEO and how crucial ROI is for Singaporean businesses regarding the two digital marketing approaches, let’s explore how PPC and SEO work. 

How PPC Works

Image source: HubSpot

Google ads and Bing ads are some examples of PPC. It functions on a bidding system, where brands bid for ad placements in search results in relevant content categories. Here’s how it works:

• Keyword Bidding: You can choose the keywords relevant to your business, products, or services as an advertiser. For example, you have a coffee shop in Singapore. You might opt to bid on keywords like “best cafe Singapore.”
• Ad Auction: Every time a user searches for a keyword, an auction occurs between advertisers bidding for that keyword. The auction determines whose ad gets displayed, and the order of ads is based on the bid amount and other factors, such as the Ad Quality Score.
• Ad Placement: Usually, a user can see the PPC ad on prominent placements, such as the top or bottom of the search engine results pages (SERPs). Websites and social media platforms can also display PPC ads.
• Pay-Per-Click: Since it is pay-per-click, you only pay when a user clicks on the ad. The cost per click depends on the keyword’s competitiveness. 
• Targeting: PPC platforms offer advanced targeting options, such as geographic location, device type, and demographics. These ensure that ads reach the right audience, increasing the likelihood of conversions.

Key Benefits of PPC

For businesses seeking immediate results, PPC offers several advantages:

• Immediate Results and Visibility: Since PPC campaigns can deliver quick results, ads can show as soon as the campaign starts. Instant visibility and results are ideal if you are looking for fast traffic, especially when you are promoting time-sensitive offers. 
• Targeted Audience Reach: With PPC, businesses can finely target their ads based on location, search intent, demographics, interests, and even the time of day. This precise targeting improves the chances of reaching the right audience, which increases ROI.
• Full Control Over Budget: In PPC, you have complete control over your ad budget. You can set a daily or monthly budget to stay moderate. Moreover, with PPC, fees only run when users interact with your ad. 
• Measurable and Trackable: PPC is data-driven. Platforms like Google Ads provide analytics tools to monitor your campaign’s performance. You can measure clicks, impressions, and conversions, giving insights into improving your strategies. 
• Highly Scalable: Advertisers can quickly scale PPC campaigns as businesses grow by increasing the ad budget or expanding to new keywords and markets. This flexibility allows companies to grow their reach as needed.
• A/B Testing: PPC allows for easy A/B testing of different ad copies, landing pages, or audience segments, providing insights into which strategies generate the best results.

Common PPC metrics 

To evaluate the success of a PPC campaign, you must track specific metrics. Here are some of the most commonly tracked metrics that help businesses track and optimise their PPC campaigns for better performance.

Metric	Definition	Importance	Formula/Example
Click-Through Rate (CTR)	Percentage of users who click on an ad after seeing it	Indicates ad relevance and engagement with the target audience	CTR = (Clicks / Impressions) x 100 Example: 100 clicks / 2000 impressions = 5%
Cost Per Click (CPC)	Amount paid for each click on the ad	Lower CPC helps improve cost efficiency and ROI	CPC = Total Spend / Total Clicks Example: SGD 500 spend / 250 clicks = SGD 2.00 per click
Conversion Rate	Percentage of clicks that result in a conversion (desired action)	Measures how effectively clicks lead to valuable actions	Conversion Rate = (Conversions / Clicks) x 100 Example: 25 conversions / 500 clicks = 5%
Quality Score	Score (1-10) based on ad relevance, CTR, and landing page quality	Impacts ad placement and CPC; higher scores reduce costs	Example: Google considers keyword relevance, ad quality, and landing page experience
Return on Ad Spen (ROAS)	Revenue generated compared to ad spend	Evaluates the profitability of the campaign	ROAS = Revenue from Ads / Ad Spend Example: SGD 5000 revenue / SGD 1000 spend = 5:1
Impressions	Number of times an ad is shown to users	Measures brand visibility and reach	Example: If an ad is shown 10,000 times, it has received 10,000 impressions

How SEO Works

Search Engine Optimisation (SEO) is a strategy that improves a website’s visibility and ranking in organic search engine results. SEO comprises various tactics, including on-page SEO, off-page SEO, and technical SEO, which enhance the website’s relevance, authority, and overall performance. Let’s explore each category below.

On-Page SEO

As the name suggests, on-page SEO optimises the elements within the webpage or on the website. Its key components are:

• Keyword Optimisation: Using relevant keywords in titles, headers, meta descriptions, and content.
• Content Quality: Creating high-quality, informative, and valuable content that addresses user intent and resolves queries
• URL Structure: Using short, descriptive URLs that include targeted keywords
• Internal Linking: Linking between related pages within the same website to boost content discoverability and page authority
• Meta Tags: Crafting optimised meta titles and descriptions that improve click-through rates from search results

Image source: Venngage

• Image Optimisation: Using alt text, descriptive file names, and proper image formats ensures search engines can index images and improve page load speed

Off-Page SEO

As the name suggests, off-page SEO refers to actions taken off the webpage or outside the website to improve its search engine ranks and authority. These actions include building backlinks and social signals.

Image source: Moz

• Backlink Building: This involves acquiring high-quality backlinks from authoritative websites. Search engines view these backlinks as votes of confidence, which can significantly impact a site’s rankings.
• Social Sharing: While not a direct ranking factor, social media mentions and shares can indirectly boost visibility and attract traffic

Image source: Ahrefs

• Guest Posting: Write and link content for other reputable websites to your site. Guest posting builds authority and generates referral traffic.

Technical SEO

Technical SEO focuses on optimising a website’s infrastructure to make it easier for search engines to crawl and index the site. Key aspects include: 

• Website Speed: Improving page load times by optimising code, compressing images, and using caching to enhance user experience and reduce bounce rates
• Mobile-Friendliness: Ensuring the website is responsive and provides a seamless experience across different devices
• XML Sitemap: Creating and submitting a sitemap that helps search engines understand and index all pages on the site
• Robots.txt: Configuring the robots.txt file to control which pages search engines can and cannot crawl
• Structured Data/Schema Markup: Using structured data to help search engines better understand the content and display rich snippets in search results.

Key Benefits of SEO

SEO provides businesses with long-term advantages that improve their discoverability and attract organic traffic. Its key benefits include:

• Cost-Effective: Unlike paid advertising, SEO doesn’t require a constant influx of cash to maintain rankings. While there are costs associated with content creation and site optimisation, organic search traffic is free once you rank well.
• Long-Term Results: SEO is a long-term strategy that builds sustainable traffic over time. Once a site achieves good rankings, it can continue to attract visitors for months or years with regular updates and maintenance.
• Increases Credibility and Trust: Users perceive websites at the top of search results as more trustworthy and credible. SEO helps businesses build authority by offering relevant content and earning backlinks from reputable sources.
• Targeted Traffic: SEO helps attract users actively searching for specific products, services, or information. The traffic generated by SEO tends to be highly relevant and more likely to convert into customers or leads.
• Better User Experience: SEO encourages optimising website elements like load speed, mobile-friendliness, and navigational structure. These optimisations improve the overall user experience, making the site easier to navigate and more enjoyable for visitors.
• Competitive Advantage: Investing in SEO allows businesses to outperform competitors who might need to focus on organic search. Ranking above competitors can result in higher brand visibility, more traffic, and potentially more sales.

What is ROI and Why it Matters for Singaporean Businesses

Marketing budgets are often limited, especially for small businesses. Therefore, companies must be wise in spending to maximise results in exchange for optimised efforts. In the case of PPC and SEO, one of the most critical factors for businesses is ROI or Return on Investments. ROI helps marketers determine the effectiveness of a campaign by comparing the revenue generated to the costs involved. 

In digital marketing, ROI measures the financial return from campaigns relative to their cost. Apologies for going to the nerdy side, but here is the ROI formula to help you compute it:

Image source: iSpringSolutions

For example, if a company spends SGD 1,000 on a PPC campaign and generates SGD 5,000 in sales, the ROI would be 400%. This calculation allows businesses to assess whether a particular marketing effort is worthwhile.

Understanding the ROI of PPC vs SEO helps companies in Singapore make data-driven decisions about where to invest their marketing dollars.

PPC ROI

PPC can provide immediate results, but costs can quickly add up if not appropriately managed, reducing ROI. Therefore, businesses need to monitor and optimise campaigns to ensure profitability.

SEO ROI

SEO often has a slower payback period, but once a website starts ranking high organically, it can provide ongoing traffic at no additional cost, leading to a better long-term ROI. However, businesses must also factor in the initial investment in content creation, technical improvements, and SEO services.

Factors Influencing ROI in Singapore

In Singapore, factors such as industry dynamics, market trends, consumer behaviour, and competition heavily influence the ROI of PPC vs SEO. As a digital marketer or a brand owner, you must understand Singapore’s competitive landscape. Hence, you know how to adapt your PPC and SEO strategies to maximise ROI in the fast-paced digital space in Singapore. Let’s explore each factor. 

Industry-Specific Considerations

Below are some of Singapore’s prominent industries. Different sectors in Singapore experience varying ROI from PPC and SEO due to their unique characteristics, target audiences, and competitive environments.

Industry	PPC Considerations	SEO Considerations
Retail and E-Commerce	High ROI from targeted ads Immediate sales High CPC	Long-term organic traffic Lower acquisition cost over time
Financial Services	High-value leads High CPC Requires budget management	Authority building Lead generation through informative content
Hospitality and Tourism	Immediate bookings Peak season focus High keyword competition	Local SEO for sustained visibility Crucial mobile optimisation
B2B and Professional Services	High-quality leads Long sales cycles High CPC	Lower competition for niche keywords Authority-building content

Market Trends and Consumer Behaviour

Current trends and evolving consumer behaviours in Singapore directly impact the effectiveness of PPC and SEO strategies.

Growth in Mobile Search

According to Statista, “the number of smartphone users in Singapore was estimated to reach 5.72 million, with a forecast of 99.4 per cent of the population using the device by 2026.” This high smartphone penetration also increased the activity on mobile devices, particularly in mobile search. 

• Impact on PPC: With more Singaporeans using mobile devices to browse and shop online, businesses need to optimise their PPC ads for mobile. Platforms like Google Ads offer mobile-specific ad formats, and companies that invest in mobile-friendly PPC strategies often see higher ROI due to better user engagement on mobile devices.
• Impact on SEO: Google’s mobile-first indexing means businesses must ensure their websites are mobile-optimised for SEO. Fast-loading, mobile-friendly websites that offer a seamless user experience rank better on search engines, improving their organic visibility. SEO investments in mobile optimisation can provide significant long-term ROI as mobile search grows in Singapore.

Rise of Voice Search

Voice search is also on the rise in Singapore and the world. Many have integrated voice search into various platforms and devices, such as smart speakers and phones. According to Statista, this trend results from “the advancement of automatic speech recognition (ASR) systems using deep learning models,” among other reasons. 

• Impact on PPC: Voice search is becoming increasingly popular in Singapore, particularly among younger consumers. PPC ads must adapt by targeting longer, more conversational keywords that align with how users ask questions via voice-enabled devices (e.g., “Where is the best place to eat near Orchard Road?”).
• Impact on SEO: Voice search optimisation is essential for SEO success. Businesses need to incorporate natural language keywords and optimise for local search queries. Singaporean companies that rank well for voice search can see substantial increases in organic traffic, boosting SEO ROI over time.

Increasing Focus on Local Search

CFO Group reported that “four out of five customers conduct their searches locally.” Local search is one of the significant user behaviours in search engines, with 46% of Google searches having local intent, as reported by Sagapixel. With these impressive statistics, local search is becoming one of the hottest trends in how users use search engines. As a brand owner, you must not overlook investing in local search. 

• Impact on PPC: Local PPC campaigns that target specific neighbourhoods or districts in Singapore tend to perform well, particularly for businesses in the retail, dining, and service sectors. Google Ads offers local search ad formats in Google Maps, enabling enterprises to capture users searching for nearby services.
• Impact on SEO: Local SEO is critical for businesses targeting local customers in Singapore. Optimising for “near me” searches, claiming Google My Business listings, and ensuring NAP (name, address, phone number) consistency across online directories can significantly improve organic rankings. As local search grows, businesses can expect high ROI from SEO strategies focusing on local visibility.

ROI Analysis of PPC vs SEO

Consider cost structure and conversions to compare PPC and SEO’s ROI. Understanding these concepts will help you select which digital marketing approach best suits your business and goals. 

Cost Structure

PPC Costs

• Bidding and Ad Spend: PPC platforms like Google Ads and Bing Ads work on a bidding system where advertisers bid for ad placements based on targeted keywords. Each time a user clicks on an ad, the advertiser is charged (Cost Per Click, or CPC).
• Budget Management: Advertisers set daily or campaign-level budgets. Costs fluctuate depending on keyword competition, and businesses can control their spending by adjusting bids and budgets.
• Ongoing Costs: PPC requires consistent investment. Once the ad budget runs out or the advertiser pauses the campaign, the ads stop showing, and traffic ceases.

SEO Costs

• Initial Investment: SEO requires an upfront investment in optimising the website (on-page, off-page, and technical SEO). It includes costs for keyword research, content creation, site audits, and link-building campaigns.
• Ongoing Costs: After the initial setup, maintaining SEO is less expensive than PPC. However, it still requires ongoing content updates, monitoring, and adjustments to keep up with algorithm changes and competition.
• Long-Term Value: SEO provides long-lasting results. Organic traffic can continue with minimal costs, making it a more sustainable strategy in the long run.

Conversion Rates and Effectiveness

The conversion rate is vital in determining ROI for both PPC and SEO. A higher conversion rate leads to more sales or leads, improving your business’s bottom line. 

Comparative Analysis of Conversion Rates for PPC vs SEO

• PPC Conversion Rates: PPC often yields higher conversion rates than SEO, as ads can be highly targeted based on user intent. Users clicking on ads are typically further down the funnel and ready to make a purchase or take action. However, the conversion rates can fluctuate depending on the ad quality, landing page optimisation, and targeting.
  • Average Conversion Rates: In competitive industries like e-commerce, PPC conversion rates range between 2% and 4%, but this can vary significantly by industry and campaign optimisation.
• SEO Conversion Rates: Organic traffic from SEO might have slightly lower conversion rates than PPC, especially for broad, informational keywords. However, organic traffic is more sustainable and generally less expensive to convert over time. SEO can drive traffic from top-of-the-funnel searches (research-oriented queries), eventually leading to conversions as the customer progresses.
  • Average Conversion Rates: SEO conversion rates are typically lower than PPC in the short term but can improve as users gain trust through repeated exposure to high-quality content and relevant search results.
• Factors Affecting Conversion Rates
  • Landing Page Relevance: Whether from PPC or SEO, conversion rates depend heavily on how relevant and well-optimised the landing page is for the user’s intent.
  • Audience Targeting: PPC allows precise targeting through demographics, interests, and search intent, often leading to higher initial conversion rates. SEO focuses on broader search intent, so the audience may not always be ready to convert immediately.

Case Studies or Examples from Singaporean Businesses

To highlight the comparative ROI between PPC and SEO, let’s look at examples of how Singaporean businesses have leveraged each strategy:

Case Study 1: Singapore Airlines (PPC)

• Objective: Boost bookings for flights
• PPC Strategy: Singapore Airlines ran a Google Ads campaign targeting high-intent keywords like “flights from Singapore to Japan.”
• Results: With a well-optimised ad and landing page, the campaign generated a good conversion rate and achieved an optimised return on ad spend (ROAS). The immediate results helped the airline fill seats.
• ROI: Though the campaign was short-term, the high conversion rate and immediate traffic influx resulted in a positive ROI.

Case Study 2: Love, Bonito (SEO)

• Objective: Increase organic traffic and sales for its online fashion store.
• SEO Strategy: Love, Bonito focused on optimising product pages for keywords like “dresses for women sg” and invested in content marketing through a blog. They also worked on building backlinks through fashion-related websites.
• Results: Love, Bonito saw increased organic traffic and improved search engine rankings for key product categories, which led to an increase in the conversion rate from organic visitors.
• ROI: SEO’s long-term nature resulted in sustained organic traffic, reducing the company’s reliance on paid ads and delivering ongoing ROI over several years.

Case Study 3: Carousell (PPC & SEO Combined)

• Objective: Drive user acquisition for its online marketplace platform.
• Strategy: Carousell used a combined PPC and SEO approach. They ran Google Ads targeting keywords like “buy and sell Singapore” while optimising their website for organic search using long-tail keywords and mobile optimisation.
• Results: The PPC campaign drove immediate sign-ups, while the SEO strategy gradually increased organic visibility over months. Over time, the balance between paid and organic traffic shifted towards organic, reducing cost per acquisition.
• ROI: The combined approach helped Carousell achieve a high ROI by leveraging PPC for short-term gains and SEO for long-term growth.

Frequently Asked Questions

What is the main difference between PPC and SEO?

PPC delivers immediate traffic by paying for ads, while SEO focuses on improving organic search rankings for long-term visibility.

Which offers faster ROI: PPC or SEO?

PPC offers faster ROI as results are immediate, while SEO provides gradual ROI with long-term benefits.

Is PPC more expensive than SEO in Singapore?

Yes, PPC involves ongoing ad spend, whereas SEO has an upfront investment but lower ongoing costs.

Which strategy is better for small businesses in Singapore?

SEO is better for long-term growth, but PPC can be useful for short-term promotions or immediate results.

Can PPC and SEO be used together?

Combining both strategies maximises visibility and ROI by capturing short-term traffic and building long-term organic growth.