When is SEO NOT worth it? earn by blogging adsense income

I'm trying to figure out when SEO is not worth the investment. Currently working with a client in an extremely competitive space, SF bay area home remodeling. They're a smaller business that just doesn't have the budget to spend a significant amount in SEO. I'm trying to balance whether it's better to focus keywords that aren't quite as popular and more attainable, or to just divert the budget to Adwords and Facebook Ads instead. When does SEO reach the point of diminishing returns?

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