Adwords pricing has gone mad.
Competition in search and social networks has brought the cost of advertising to the highest possible level. In some cases, this level even exceeds the maximum rational, as there are always advertisers:
- who do not know how to count
- who believe that price war will help them kill competitors
- who spend their investment money on advertising
If you want to earn money and use AdWords or facebook ads or the like, you need to answer two questions:
- Is your margin higher than that of our competitors targeting the same people you do? Due to what?
- Is your conversion into a buyer higher than that of your competitors? What is so valuable that you offer? Why your the conversion is higher?