According to Anne Holland over at MarketingSherpa.com, “This year marketers will spend roughly 1/8th of their search budgets on Search Engine Optimisation, and 7/8th on paid search ads.”
That, to my mind, is insane.
Search engine optimisation (that is, developing your site in such as way that it gets high search engine rankings) makes far more medium to long term sense than Pay Per Click (PPC) advertising. The return on investment keeps going up and up as rankings rise.
With PPC the return on investment stops the minute the ads do.