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Adwords and SEO are Connected
The bottom line is that Adwords and SEO are abolutely related. Here is the case study proving this point.
One of our fastest growing clients, Scosche, has a new product called rhythm. This is a new pulse monitor that gives you workout results directly on your smart phone. We targeted the keyword "pulse monitor" and started climbing the rankings. We ran Google Adwords and optimized the page for SEO. We had hit page one when the wheels fell off. How? Our Adwords account was deactivated by mistake. That single day cost us page 1. We dropped to page 4 in four days. Brutal. We got our account re-activated and things were back on the move up the rankings.
Now when you want a wireless pulse monitor you can actually find Scosche's Rhythm in the results. Results on page 4 might as well not exist.
The bottom line...paying for traffic using Google Adwords doesn't make sense unless it is combined with SEO. Otherwise it just isn't cost effective. With that said, SEO without Adwords is just a futile. Job security for me and Google stock will continue to rise.