How can you use Google Ads to improve your SEO strategy?
The Google Ads search term report reveals the exact words users type before clicking an ad, including variations no keyword research tool detects. This data validates keywords before investing months in organic content: if a query converts in Ads at a profitable cost per acquisition, it deserves a dedicated organic page. Google Research demonstrated that 89% of search ad clicks are incremental and are not replaced by organic clicks when campaigns are paused, confirming that both channels work as amplifiers rather than competitors.
Key takeaways
- 89% of clicks generated by search ads are incremental: they are not replaced by organic clicks when campaigns are paused. Google Research study across 400+ advertiser accounts — source: Google Research, 2011.
- When the advertiser holds organic position 1, search ads still generate 50% incremental clicks. At positions 2-4, the figure rises to 82%. Research by David Chan, Google — source: Search Engine Land.
- 37.9% of websites paying for ads already rank in the organic top 10 for the same keyword. Ahrefs study across 2.3 million keywords — source: Ahrefs.
- The average cost per click in Google Ads reached $5.26 in 2025, up 10% from 2024. In sectors like legal and insurance, it exceeds $9. WordStream report across 16,446 campaigns — source: WordStream.
- Mature SEO campaigns generate leads at $14-$50 each, compared to $75-$300 for Google Ads in the same categories. Conductor estimates organic SEO delivers 3-5x higher ROI than Ads at 12 months — source: Conductor / First Page Sage.
Most companies run Google Ads and SEO as separate departments with separate budgets, separate KPIs, and frequently different agencies that do not even share a monthly meeting. The result is predictable: they double efforts on the same keywords, compete against themselves in the SERP, and waste the most valuable asset they have available, which is cross-channel intelligence.
A PPC team accumulates months of data on which queries convert, at what cost, and at what click-through rate. That information is gold for the SEO team, which operates without knowing which keywords will produce real revenue until the content has been ranking for months. In the opposite direction, the SEO team holds Search Console data on queries with thousands of impressions where the brand does not appear in Ads. That bidirectional flow produces a multiplier effect that neither channel can generate on its own.
The average cost per click in Google Ads reached $5.26 in 2025, according to WordStream’s report across 16,446 US campaigns, representing a 10% increase over 2024. Every dollar wasted on a keyword that could already be covered organically is a dollar not invested in capturing traffic where SEO has not yet reached. The question is not whether to use Ads or SEO. It is what data from each channel the other is missing.
The Ads search term report is your most precise keyword research tool
Keyword research tools (Ahrefs, Semrush, Keyword Planner) work with estimates. Estimated search volume, estimated keyword difficulty, estimated CPC. The Google Ads search term report does not estimate: it records. It records the exact word a user typed before clicking your ad and, if conversion tracking is configured, it records whether that visit became a lead, sale, or contact.
That difference between estimation and recording is what makes this report the most underused intelligence source in search marketing. An SEO team that does not review the Ads search term report is deliberately choosing not to know which keywords generate real revenue.
The process works as follows. Export the search term report from the last 90 days. Filter by conversions (at least 2 in that period to avoid statistical anomalies). Sort by cost per conversion ascending. The queries at the top of that list are those converting at the lowest cost and, therefore, the priority candidates for dedicated organic content. If a keyword generates 15 conversions per month at $22 each in Ads, and you can rank an organic page for that same query, the cost of those 15 conversions drops to near zero after the initial content investment.
What makes this process different from conventional keyword research is that it eliminates the hypothesis phase. You are not betting on keywords that “might” work. You are working with keywords that already demonstrate commercial intent measured in currency.
The cannibalisation myth: what Google’s research says
The most frequent argument against running Ads and SEO on the same keyword is that ads “steal” clicks from the organic result. If you already appear in organic position 1, why pay for an ad that shows the same URL a few centimetres higher?
Google Research answered this question with data. David Chan and Lizzy Van Alstine, from Google’s Quantitative Management Team, analysed over 400 advertiser accounts in a study published in 2011. The methodology consisted of observing organic click volume when search ads were paused and building statistical models to estimate incremental click attribution.
The result: 89% of clicks generated by search ads are incremental. If you pause your campaigns, you only recover 11% of those clicks through organic results. The remaining 89% disappear because the user does not scroll, chooses a competitor, or reformulates the search.
A subsequent study by Chan examined the organic position variable in greater depth. When the advertiser holds organic position 1, ads still generate 50% incremental clicks. At positions 2-4, the percentage rises to 82%. And when the organic result sits below position 5, 96% of ad clicks are incremental. Chan described the finding as “a very surprising result that runs counter to what people would think, but the data speaks for itself.”
The nuance this study does not resolve (and which Chan acknowledges) is that it measures clicks, not conversions. That 50% of clicks are incremental does not mean 50% of conversions are. But the direction of the data is clear: in the vast majority of cases, Ads and organic function as amplifiers, not competitors.
Decision matrix: when to bid and when to rank organically
Not every keyword deserves the same treatment. Applying a single tactic to all of them produces either inflated Ads spend or an inefficient content strategy. The decision to bid, rank organically, or do both depends on four variables.
Variable 1: urgency. If you need traffic this week (product launch, seasonal offer, active acquisition campaign), Ads is the channel. SEO does not generate results within 7 days. When urgency subsides and the keyword demonstrates stable monthly volume, it becomes a candidate for organic content.
Variable 2: organic competition. Open the SERP and analyse the top 10 results. If the domains are Wikipedia, Forbes, HubSpot, and sites with Domain Rating above 70, ranking organically could take 12-18 months of intensive link building. In that scenario, Ads gives you immediate access to traffic whilst you execute the long-term organic strategy.
Variable 3: current Ads cost per conversion. If a keyword costs you $8 per conversion in Ads and generates consistent revenue, organic priority is high. Producing a content piece that captures that traffic without click cost has a short payback period. If the keyword costs $0.40 per click and converts well, organic urgency is lower because the Ads cost is sustainable.
Variable 4: search intent. Informational keywords (“what is schema markup”) perform better in SEO because the user seeks long, detailed content. Transactional keywords (“buy SEO audit tool”) work well in both channels, but Ads can capture the user who is ready to purchase now, without making them read 2,000 words.
Ahrefs published a study across 2.3 million keywords that adds a relevant data point: 37.9% of websites paying for ads already rank in the organic top 10 for the same keyword. In many of those cases, Ads spend is redundant. Two-thirds of the time, brands bid on their own branded keywords without any competitor bidding against them. That is not strategy; it is budgetary inertia.
The pipeline: from search term report to editorial calendar
Sharing data between teams is not an abstract concept. It is an operational flow with measurable steps.
Step 1 (weekly): extraction. The PPC team exports the search term report with columns: search query, impressions, clicks, conversions, cost per conversion. Filter queries with at least 2 conversions in the past 30 days.
Step 2 (fortnightly): cross-reference with Search Console. The SEO team cross-references those queries with Google Search Console data. For each query, answer two questions: do we have an organic page for this keyword? At what average position does it appear?
Step 3 (monthly): classification. Queries fall into three groups. First group: keywords where organic presence exists at positions 1-3. Here, evaluate whether Ads spend is necessary or redundant. Second group: keywords where organic presence exists at positions 4-20. Here, the priority is improving existing content whilst Ads covers demand. Third group: keywords with no organic presence. These enter the editorial calendar as new content.
Step 4 (monthly): budget allocation. Keywords from the first group free Ads budget that gets redirected to the third group, where no organic alternative exists. The second group maintains Ads with reduced bids.
This flow does not require additional software. It works with Google Ads, Search Console, and a shared spreadsheet. What it requires is that both teams talk to each other.
Real case: cutting Ads by 30% without losing pipeline
Powered by Search documented a case involving a B2B SaaS company in the fitness sector that arrived with a common problem: it was spending 180% of its planned Google Ads budget because the previous agency had configured campaigns with a “set it and forget it” approach.
The diagnosis revealed four sources of inefficient spend: search campaigns that included Display and Search Partners (networks with CTR below 0.5%), inconsistent geotargeting across campaigns, manual bidding when sufficient data existed for smart bidding, and no audience exclusion lists, causing prospecting ads to be shown to existing customers searching for support or login.
After campaign optimisation and budget redistribution, the company reduced its Ads investment by 30% and improved sales by 5%. The mechanism: they stopped spending on keywords where customers already knew them and redirected that budget to acquisition keywords where they had no organic presence.
The pattern repeats across companies that manage Ads and SEO as an integrated operation. Conductor estimates that organic SEO delivers 3-5x higher ROI than Ads at 12 months, and 8-12x at 24 months, thanks to the compounding effect of accumulated rankings. Mature SEO campaigns generate leads at $14-50 each, compared to $75-300 for Google Ads in the same categories. The gap widens with each passing month because organic cost is fixed (content production) whilst Ads cost is paid per click, every click, indefinitely.
Budget reallocation: a framework for marketing teams
The conversation about how much to invest in Ads versus SEO typically resolves with arbitrary percentages (“50/50”, “70/30 favouring Ads”). A data-driven framework starts from a different premise: the Ads budget should cover exactly the keywords where SEO cannot reach within the business’s time horizon.
The calculation works as follows.
First, identify all keywords generating conversions in Ads. Second, for each keyword, estimate the timeline needed to reach organic position 1-3 (the SEO team can approximate this using keyword difficulty and current domain authority). Third, for keywords with a timeline exceeding 12 months, keep Ads active. For keywords with a 3-6 month timeline, maintain Ads with reduced budget. For keywords where you already hold position 1-3, evaluate pausing Ads and measure over 30 days whether total clicks drop by more than 20%. If they fall by less, the Ads spend for that keyword was redundant.
The reallocation cycle repeats quarterly. As organic content matures and reaches positions 1-3, the keywords migrate from the “Ads required” column to the “Ads optional” column. The budget freed up gets invested in new keywords where organic coverage does not yet exist. Over 24 months, this cycle tends to shift the ratio from 70/30 Ads-heavy to 40/60 favouring organic, whilst total conversions grow because the freed budget targets untouched search territory rather than defending ground already held.
Frederick Vallaeys, co-founder of Optmyzr and former Google executive who spent nearly 10 years on the AdWords product, has emphasised that bid automation does not replace the strategic decision of where to invest. Performance Max campaigns and smart bidding optimise within the parameters you configure, but they do not decide for you whether a keyword should be covered with organic content rather than advertising spend. That decision requires data from both channels and a team that examines them together.
Concrete next steps
If you manage Ads and SEO as independent channels, the first move is not reorganising the budget. It is creating a shared data flow.
Export the Google Ads search term report from the last 90 days and share it with whoever manages SEO. In parallel, export the Search Console performance report (pages with over 1,000 impressions and CTR below 3%) and share it with whoever manages Ads. Cross-reference both reports in a shared spreadsheet and classify keywords into the three groups described above.
For teams looking to automate the cross-reference, Google Looker Studio allows connecting Google Ads and Search Console in a single dashboard. SpyFu and Semrush offer combined views of organic and paid keywords by domain. Ahrefs includes overlap filters between organic positions and paid keywords.
The data point that transforms the relationship between channels is not the theory that “Ads and SEO complement each other.” It is seeing, in the same row of a spreadsheet, that a keyword costing $47 per conversion in Ads already generates 200 organic visits per month at no click cost. That data point makes the budget decision obvious. And it only appears when both teams share the information.
Sources and references
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Studies Show Search Ads Drive 89% Incremental Traffic — Google Research (research.google)
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Impact of Organic Ranking on Ad Click Incrementality — Google Research (research.google)
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Google Ads Benchmarks 2025 — WordStream (wordstream.com)
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How to Combine SEO & PPC Data for More Powerful Results — Search Engine Journal (searchenginejournal.com)
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Google Ads Search Terms Report Tips — Search Engine Land (searchengineland.com)
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B2B SaaS Case Study: 30% Less Ad Spend — Powered by Search (poweredbysearch.com)
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Frequently Asked Questions
Do Google Ads compete with organic results for the same clicks?
Not significantly. Google Research analysed over 400 advertiser accounts and concluded that 89% of clicks generated by search ads are incremental, meaning they would not be replaced by organic clicks if campaigns were paused. Even when the advertiser holds organic position 1, ads produce 50% additional clicks. The phenomenon occurs because ads capture a segment of users who do not engage with organic results due to the scroll required or differences in the visible copy.
When should you pay for a keyword in Google Ads instead of ranking organically?
Paying makes sense when you need immediate results (product launch, seasonal promotion, new product validation), when the SERP is dominated by competitors with high-authority domains that would take years to displace, or when the Ads cost per conversion is lower than the estimated cost of producing organic content for that keyword. If a keyword already converts in Ads and volume justifies it, the ideal approach is to work both channels in parallel: Ads captures traffic short-term whilst organic content matures over 6-12 months.
How do SEO and PPC teams share data effectively?
The most direct channel is the Google Ads search term report, which shows the exact words users typed before clicking an ad. This report feeds the SEO team with real, conversion-validated keywords. In the other direction, Google Search Console data reveals queries with high impression volume but low organic CTR, which are candidates for Ads campaigns whilst content is being developed. A monthly bidirectional data flow between both teams prevents effort duplication and budget cannibalisation.
How much can you save on Google Ads with a strong SEO strategy?
It varies by sector, but documented reductions range from 30% to 60% of Ads budgets. Powered by Search documented a B2B SaaS case that cut Ads spend by 30% whilst improving sales by 5% through campaign optimisation and transferring profitable keywords to the organic channel. The mechanism is cumulative: each keyword that reaches organic position 1-3 frees Ads budget that can be reallocated to keywords where organic presence does not yet exist.