Paid search marketing and SEO are often seen as rivals, but according to the journal, the relationship is more strategic than competitive. The study explains why SEO firms can still survive even when search engines control both rankings and advertising.
The researchers highlight that search engine quality, advertiser behavior, and platform strategy all shape the balance between organic search and sponsored search. In other words, the market is not just about ads versus optimization, but about how search engines organize both.
SEO and Paid Search
Two channels, one platform
The journal presents search engine marketing as a space where paid search marketing and SEO work side by side. Google’s sponsored ads and organic results are used as a real example of this coexistence.
That makes the topic useful for readers trying to understand SEO vs paid search without treating them as complete opposites. The study suggests that both channels can remain relevant because search engines may benefit from keeping them in balance.
Main research question
Why do SEO firms survive?
The main research question is why SEO firms continue to exist in a market shaped by search engines. The authors study this because search engines can control paid advertising and influence algorithmic rankings, yet SEO firms still remain active.
According to the journal, survival depends on several market conditions, especially search engine effectiveness, search engine robustness, and advertisers’ willingness to pay. That is the central idea readers should keep in mind.
Method and framework
Analytical game theory model
The study uses analytical game theory models based on search engine quality. It then extends the baseline model to test whether the conclusion still holds under AI adoption, mobile search, search engine competition, advertiser competition, and interactions between effectiveness and robustness.
The paper divides search engine quality into two parts: algorithm effectiveness and algorithm robustness. It also uses the idea of a cost dilution effect to explain how SEO influences advertiser costs and search engine strategy.
This framework connects technical search quality with business outcomes. It helps explain why ranking changes can affect both paid ads and organic visibility.
Key findings
SEO can still benefit search engines
One major finding is that SEO firms do not automatically reduce search engine profits. In some cases, search engines can earn more by allowing SEO firms to stay in the market rather than eliminating them.
Higher willingness to pay does not always mean higher click prices
The paper also finds that there is no strictly positive relationship between advertisers’ willingness to pay and the click price of paid search marketing. In fact, the click price can even fall when willingness to pay rises.
Better search quality does not always mean more profit
Another important result is that higher search engine effectiveness does not always lead to higher search engine profit. The reason is that stronger effectiveness can also improve SEO firms’ position and intensify market competition.
Main conclusion remains stable
The journal’s extended models show that the core conclusion remains robust even when AI, mobile search, search engine competition, and advertiser competition are included. That makes the findings more relevant for modern SEO and search marketing discussions.
Important evidence
Data and statistics
The journal includes several industry figures to show the size and importance of search marketing.
Google processes about 3.5 billion searches per day.
Google recorded 84.2 billion monthly visits in 2023.
Google accounted for 63.41% of U.S. web traffic referrals.
Search advertising revenue rose 5.2% year over year to $88.8 billion in 2023.
Search advertising represented 39.5% of digital ad market revenue.
Google Ads revenue grew from $7 million in 2001 to $23.786 billion in 2023.
Google’s ranking system includes more than 200 signals.
Google was making 500–600 algorithm changes per year as of 2022.
The SEO market is projected to reach $122.11 billion by 2028, with a CAGR of 9.6%.
The paper uses Google’s sponsored ads and organic results to show how paid search marketing and SEO work together in practice. It also mentions Google AI Overviews, Bing with ChatGPT, and Baidu with ERNIE Bot as examples of AI integration into search.
Concepts and frameworks
Key concepts in the paper include SEO, paid search marketing, search engine marketing, search engine quality, algorithm effectiveness, algorithm robustness, willingness to pay, cost dilution effect, organic search, and sponsored search. The study also uses strategic interaction and game-theoretic modeling to describe the market.
Limitations
The journal says the assumption of a uniform distribution of advertisers’ willingness to pay is simplistic. It also limits the model to advertisers in one industry.
Another limitation is that the study focuses on the effect of SEO on search results and does not address other search engine aspects such as page design, reputation evaluation, or personalized services.
Practical takeaways
The journal shows that SEO still has a place even in a paid-search-dominated market. It also suggests that search engines may gain from preserving both organic search and sponsored search rather than relying on only one.
For marketers, the practical lesson is to see SEO vs paid search as a strategic relationship, not a strict either-or choice. The paper’s findings also highlight why search engine quality matters when evaluating the future of search marketing.
Conclusion
This journal makes a strong case that SEO firms survive because the search market is shaped by more than just ads. Search engine quality, advertiser behavior, and strategic balance all matter.
The main takeaway is that SEO remains relevant, not because it replaces paid search marketing, but because both channels can support the broader search engine marketing ecosystem.
FAQ
1. Why do SEO companies still exist if search engines control paid ads?
According to the journal, SEO firms survive because their presence can still fit search engine strategy under certain market conditions.
2. Is paid search always better than SEO?
Not according to the journal. The paper treats both as strategic channels that can coexist rather than as a simple winner-versus-loser pair.
3. Can improving a search engine always increase its profit?
No. The journal says higher search engine effectiveness does not always mean higher profit.
4. What affects the survival of SEO firms in the market?
The journal points to search engine effectiveness, search engine robustness, and advertisers’ willingness to pay.
5. How do AI and mobile search change SEO and paid search competition?
The journal tests these factors in extended models and finds that the core conclusion remains robust.
Reference
Li, K., Shen, C., Lin, M., & Lin, Z. (2026). Paid search marketing vs. search engine optimization: Analytical models of search marketing based on search engine quality. Journal of the Association for Information Systems, 27(1), 297–343. doi:10.17705/1jais.00961
Senior Search Strategist specializing in SEO, AEO, and Generative Engine Optimization (GEO). With over a decade of experience, Rick helps brands and applications (ASO) maximize their visibility across traditional search engines, AI answer engines, and app stores.
