For Australian small and medium enterprises, deciding where to invest marketing effort – organic growth or paid advertising – is a common challenge. There’s no single ‘right’ answer. The best approach depends on your business goals, resources, and the competitive landscape. We often see businesses trying to do both, but without a clear strategy, this can lead to wasted budget and effort.

Let’s break down the key considerations. Organic growth, think content marketing, search engine optimisation (SEO), and social media engagement, builds a long-term presence. It’s about earning visibility through valuable content and building relationships with your audience. Paid advertising, like Google Ads or social media ads, delivers immediate visibility by paying for placement. It’s faster, but the moment you stop paying, the visibility disappears.

Here are some insights to help you decide:

• Time Horizon: If you need results quickly – launching a new product, running a promotion – paid advertising is the way to go. Organic growth takes time, often months, to deliver significant results.
• Budget Constraints: Organic strategies are generally more cost-effective in the long run, but require consistent effort. Paid advertising requires a dedicated budget, and costs can escalate quickly if not managed carefully.
• Competitive Intensity: In highly competitive industries, relying solely on organic growth can be difficult. Paid advertising can help you cut through the noise and reach your target audience.
• Customer Journey Stage: Organic content is excellent for attracting customers in the early stages of their buying journey – those researching solutions. Paid ads are more effective for customers further down the funnel, ready to make a purchase.

A blended approach is often the most effective. We recommend starting with a solid organic foundation – a well-optimised website and consistent content creation. Then, strategically use paid advertising to amplify your reach, target specific audiences, and accelerate growth. Consider allocating a portion of your marketing budget to testing different paid channels to see what delivers the best return on investment. Don’t forget to continually analyse your results and refine your strategy. Looking ahead, understanding how AI will impact search behaviour will be crucial in 2026 and beyond, influencing both organic and paid strategies.

To determine the best path for your business, we suggest conducting a thorough marketing audit. This will help you understand your current online presence, identify opportunities for improvement, and develop a tailored strategy that aligns with your business objectives.