A well balanced marketing strategy combines a mix of advertising media and these methods vary in cost. By keeping a media balance you constantly know the costs of each, how the costs are changing, and how to maximize the return from each of them. Internet marketing is no different and a well balanced Internet marketing program utilizes all three forms of search engine marketing: Search Engine Optimization (SEO), Local Search optimization (LSO), and Pay Per Click (PPC).
LSO or Local Search optimization is the executing of certain strategies to get your company’s web site listing higher on local search results. LSO shines at marketing a company’s core service or product. It is often the least expensive marketing media you can use. LSO is the only low cost vehicle for reaching local customers doing national level searches (for example, searching for ‘plumber’ rather than ‘plumber Bothell’). Think of LSO as the new Yellow Pages because it is only useful for searches classified as ‘local’ by the search engines. Categories not classified as local do not display local results (for example, ‘grass fed beef’). While the vocabulary of LSO is limited, it can be used to target a small set of related keyword phrases representing the primary business of the company.

Each advertising media has unique benefits.
Use LSO as the foundation of your search engine marketing if your service or product is inherently local.
SEO or Search Engine Optimization refers to strategies that get your company’s web site higher on search engine organic* results. SEO’s strength is its ability to target any geo-specific keyword phrase at a relatively low cost. SEO is not capable of targeting national level searches. A local company targeting a small geographic area (for example ‘moving companies’ in the Puget Sound) can not compete with companies that target most or all of the United States (for example, ‘moving companies’ on a national basis).
Use SEO to extend your search marketing to a wide range of geo-specific keywords.
PPC or Pay Per Click is the marketing approach that uses the official advertising tools offered by the search engine companies. PPC shines at getting presence for any (relevant) keyword phrase. The cost of PPC is usually significantly higher than LSO or SEO. PPC is not very good at reaching customers using geo-specific keywords. This is because the number of people doing geo-specific searches is small and the percent of people clicking on advertisements is very low (typically .5 to 3%). One of the key advantages of PPC is that it can be turned on and off quickly, making it ideal for advertising during slow periods.
Use PPC to extend your search marketing to a wide range of national level keywords, especially during slow periods.
Each search engine advertising media provides unique benefits to any marketing strategy. By keeping some level of activity going in each of the three key areas, the alert marketer is able to adjust the marketing mix quickly and efficiently. Such a strategy greatly improves a business’ ability to react to changing market conditions.
* Organic results refer to the list down the left side of the search results and what the search engine believes are the most relevant results.