Paid options for marketing your business such as Facebook ads, sponsored tweets and Google AdWords can generate highly qualified leads that easily convert into buying customers. These options tend to drive immediate results that can give your business an instant boost in revenue. On the darker side however, low win rates and inadequate returns on investment (ROI) can translate into unsustainably high costs of advertising, ultimately hurting your bottom line.
The truth of the matter is, these paid ad services will cost you a fortune – if you don’t use them correctly, or if you do not know how to. This simply means that if you understand the model of each of these advertising services, such as pay-per-click for AdWords, you can avoid the little but costly ad campaign mistakes and make the most of each coin you pay.
As long as you make revenue for every ad spend, your advertising costs will not have a negative impact on your business regardless of how steeply they skyrocket. The idea is to maximize the returns on every advertising expenditure and widen your profit margins. Ultimately, you generate more revenue that cancel out the impact of costs of advertising.