If you’re running an HVAC, plumbing, or electrical business, you’ve probably asked:
“Should I spend more on SEO or paid ads?”
Thanks to real-world data pulled from CI Web Group’s SearchLight dashboard—tracking leads, revenue, and marketing performance—we now have a clear answer. Between January 1 and April 24, 2025, we reviewed results across both organic (SEO) and paid ad campaigns for home service businesses.
Here’s what we found.
SEO Gives You a Better Return and Costs Less
Take a look at the side-by-side numbers:
| Metric | SEO (Organic) | Paid Ads |
|---|---|---|
| Spend | $539,651 | $2,267,565 |
| ROAS (Closed) | 19.9x | 4.4x |
| ROAS (Potential) | 34x | 10.2x |
| Cost per Paying Customer | $126.09 | $552.93 |
| Closed Revenue | $10.75M | $10.08M |
| Average Ticket | $2,682.51 | $2,835.96 |
Even though paid ads had a larger total spend and slightly higher ticket values, SEO delivered nearly 5x better return on ad spend, and at a fraction of the cost per paying customer.
Why SEO Keeps Working
One of SEO’s greatest strengths is that it continues to deliver results long after the initial work is done. Unlike paid ads, which disappear the moment you stop paying, a strong organic presence (including your Google Business Profile, website content, and directory rankings) keeps working in the background to bring in leads.
Well-built SEO efforts grow over time, helping your business show up more often, build more trust with customers, and generate better-quality leads without the need for constant spending.
It’s important to note: while SEO has a lasting impact, staying active helps you protect and strengthen your position.
Competitors who keep investing may eventually move ahead if you pause completely.
Continued SEO efforts ensure that you improve and maintain your rankings.
Bottom line:
SEO is one of the only marketing investments that continues to work, compound, and pay off well into the future.
Paid Ads Have a Purpose, But They Stop the Moment You Do
This isn’t about choosing one over the other. Paid ads are a valuable tool when used the right way.
They’re especially useful for:
- Promoting seasonal services
- Filling your schedule during slow times
- Launching into new service areas
But here’s the catch:
When you rely only on paid ads, you’re renting your visibility, not building it.
The moment you stop paying, the leads stop coming.
There’s no slow decline. Your ads disappear immediately, and you’re right back to where you started, with no organic presence to fall back on.
That’s why the smartest contractors build a strong SEO foundation first—so your business keeps showing up even when you’re not running ads, and then use paid ads strategically for short-term pushes when you need them most.
Real-World Example From Our Data
Here’s a side-by-side example pulled directly from SearchLight:
Paid Ads
- $2.26M spent
- $10.08M closed revenue
- 4.4x ROAS
SEO
- $539K spent
- $10.75M closed revenue
- 19.9x ROAS
Every dollar spent on SEO returned $19.90, while every dollar spent on ads returned $4.40.
That’s a major difference. And a big reason why top contractors invest heavily in SEO first.
What Top Contractors Are Doing Right
When we look at the contractors getting the best results, they all follow a clear plan, and it’s not random. It’s intentional, consistent, and based on what actually drives results:
1. Start with SEO to Build a Strong Foundation
- Optimize Google, Bing, Yelp, and Directory Profiles
So your business shows up where customers are already looking. - Create Service and Location-Based Website Content
To capture more local searches and rank higher for the jobs you want. - Improve Site Speed, Structure, and Technical SEO
So users stay longer, convert faster, and Google rewards you with better rankings.
→ Why it matters:
Strong SEO turns your website and online presence into a 24/7 sales machine that doesn’t stop working when ad budgets shift.
2. Add Paid Ads to Boost the Right Campaigns
- Target Seasonal Specials
Like tune-ups, system installs, or emergency repairs during peak times. - Promote New Services
Get quick visibility when launching services like indoor air quality, EV chargers, or new membership plans. - Fill Open Appointment Slots Quickly
Drive last-minute bookings and prevent slow days from hurting your revenue.
→ Why it matters:
Paid ads give you flexibility and speed, letting you respond to market needs but without becoming your only lead source.
3. Track Everything with Real Data
- Measure ROAS and Cost per Lead
So you know exactly which marketing efforts are making money and which are wasting it. - Use Dashboards like SearchLight
Get real-time insights so you can adjust fast and stay ahead of competitors.
→ Why it matters:
Marketing decisions based on guesswork cost more and deliver less. Tracking real numbers keeps you profitable and focused on what moves the needle.
In short:
Top contractors build stability with SEO, use paid ads strategically, and stay sharp by tracking the right data, not just “doing more marketing.”
Final Takeaway: SEO Is the Proven Long-Term Winner
In the battle between SEO and paid ads for home service businesses, SEO stands out as the clear long-term winner.
It’s more cost-effective.
It drives better-quality leads.
It multiplies your returns when combined with smart, strategic advertising.
Want to See How Your ROI Stacks Up?
At CI Web Group, we help home service businesses turn data into action and build marketing strategies that actually grow revenue.
👉 Book your free strategy session and find out where your biggest opportunities are.
