A lot of businesses are cynical, to say the least, about doing both SEO & Paid Search (PPC) campaigns. The argument is that you end up paying for clicks you would have gotten for free.
I don’t believe this is the case for various reasons. Some of those reasons have been discussed in this blog and the others will wait for later posts.
For now, though, here is an excellent article about a study done on the effect of doing both. And the news is good! Read what the NY University School of Business found out here:
http://www.searchfuel.com/2010/01/how-seo-can-help-your-paid-search-campaigns/ [LINK CURRENTLY DOWN]