Investing in Adwords and online advertising can result in throwing money if your conversion rate is not optimized. For example, if we have a conversation rate of 200 to 1 (one sale or goal fulfilled every 200 visits) and a competitor has a conversion rate of 100 to 1, we will have to pay twice as much in advertising to obtain the same result. Since online advertising works under fair auction, this will cause us either to lose money or to displace competitors and our budget won’t be spent.
“Even paying the same as a competitor, he would be earning twice as much as us”
Once we optimize the conversion rate, we will obtain a competitive advantage and profitability on advertising investment (ROI), which will allow us that advertising isn’t an expense, but always an investment. This brings a know-how that will make our business grow and move on the internet like a fish in the water. Fortunately, most websites don’t have enough experience in this field, which generates an opportunity for those who do it correctly.