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SEO is key to good ranking on SERP. It takes a bit of time and efforts to implement but has a long shelf life; Search Engine Advertising can ensure great rewards, but once the budget shrinks, the rest follows.
I suppose this question is quite vague. Not everyone has big budgets. People without rocks in their wallets will implement SEO and those with big budgets will implement both. I am therefore responding as someone without budgets.
For longer run SEO efforts would work better. But of couse if you have good budget and want to run both campaign go for it and optimize the campaign accordingly.
