SEO vs Ads: A Real Cost Comparison Over 12 Months
Everyone claims SEO is "cheaper" than ads. But what does it actually cost? Here's what RM 5,000/month buys you in each channel—with real numbers.
The Bottom Line
After 12 months with the same RM 5,000/month budget:
- ✗ Facebook/Google Ads: You've spent RM 60,000. The day you stop paying, leads drop to zero. No residual value.
- ✓ SEO: You've spent RM 60,000. But you now own 50+ ranking pages that will bring leads for years—even if you stop today.
Same investment. Completely different outcomes.
What RM 5,000/Month Gets You: Month by Month
Cumulative Leads & Costs
| Month | Ads Total Spent | Ads Total Leads | SEO Total Spent | SEO Total Leads |
|---|---|---|---|---|
| Month 1 | RM 5,000 | 100 | RM 5,000 | 5 |
| Month 2 | RM 10,000 | 200 | RM 10,000 | 25 |
| Month 3 | RM 15,000 | 300 | RM 15,000 | 60 |
| Month 6 | RM 30,000 | 600 | RM 30,000 | 280 |
| Month 12 | RM 60,000 | 1,200 | RM 60,000 | 980 |
*Assuming RM 50 cost per lead for ads, SEO starting slow then compounding
The Key Difference: What Happens After Month 12?
Paid Ads
You turn off the budget:
- • Leads drop to ZERO
- • All RM 60,000 is gone
- • No residual value
- • Back to square one
SEO
You pause investment:
- • Rankings stay (slowly decay)
- • Still get 300+ leads/month
- • Content keeps working for 2-3+ years
- • You own the asset
Why SEO Compounds (And Ads Don't)
Paid Ads: Linear Returns
Every month, you're starting from zero. Your RM 5,000 in Month 1 buys you 100 leads. Your RM 5,000 in Month 12 also buys you 100 leads. Same input, same output.
Often gets worse due to ad fatigue and competition
SEO: Compounding Returns
Every article you publish adds to your momentum. Month 1's content still brings leads in Month 12. Your RM 5,000 in Month 12 builds on everything before it.
Gets cheaper every month as old content keeps ranking
Here's The Magic
By Month 18 (if you keep going), your SEO cost per lead could be RM 30-40. The article you wrote in Month 3 is still ranking and bringing free leads.
Meanwhile, your competitor still pays RM 50+ per lead on ads. Every. Single. Month. Forever.
Real Example: Malaysian Service Business
This client was spending RM 8,000/month on Facebook Ads. Cost per lead: RM 75-100. Quality: terrible (tire-kickers and no-shows).
We switched them to SEO. First month was slow (5 leads). But by Month 4, they hit 60 leads from organic search alone. Better quality. Lower cost. And those rankings? Still bringing leads 18 months later.
Content written in 2024 is bringing them customers in 2026.
So Should You Never Run Ads?
We're not here to bash ads. They have their place. But know what you're buying.
Use Paid Ads When:
- • You need leads this week
- • You're launching a limited-time offer
- • You have plenty of budget and accept the cost
- • You're okay with renting attention
- • You're testing messaging/offers quickly
Use SEO When:
- • You want to own your traffic
- • You can wait 2-3 months for momentum
- • You want lower long-term costs
- • You're building a lasting business
- • You want leads in 2027 from work done today
The Best Strategy?
Run ads for immediate leads while you build your SEO foundation. Then gradually shift budget from ads to SEO as your organic traffic grows. Within 6-12 months, you're spending half as much and getting better leads.
Bonus: SEO Now Includes AIEO
Here's something ads can't do: get you recommended by ChatGPT, Claude, and Gemini.
ChatGPT handles 500+ million questions weekly. When someone asks "best SEO agency in Malaysia" or "how to get more leads without ads", AI engines scan the web and recommend the best answers.
If your content is thorough, helpful, and well-optimized, you get cited. That's AIEO (AI Engine Optimization)—and it's part of modern SEO.
Facebook ads? They disappear the second you stop paying. Your SEO content? It gets smarter as AI learns to recommend it to more people.
Final Scorecard: 12-Month Investment
| Factor | Paid Ads | SEO |
|---|---|---|
| Total Investment | RM 60,000 | RM 60,000 |
| Total Leads (Year 1) | ~1,200 | ~980 |
| Lead Quality | Low-Medium | High |
| What You Own | Nothing | 50+ ranking pages |
| Leads After You Stop | 0 | 300+/month |
| Longevity | 0 days | 2-3+ years |
| Winner | — | SEO |
Stop Renting. Start Owning.
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