During the time when a brand new adwords PPC client commences with an adwords management company, it is crucial to explain that a single Google adword purchase is worth more than hardly the value of first sale.
There are several companies who you will find advertising via adwords are willing to pay higher click costs as against their smaller competitors as they recognize this. Majority of the big companies who are in chase of lifetime customer value do understand that acquiring a customer is expensive and thus, they aim to keep them. The companies will perform the task of continuous marketing to the new customer, through placing them on mailing lists or email lists and collecting valauable information from whenever possible, thus helping them concentrate their marketing efforts.
The cost per conversion may sometimes exceed the value of the actual product purchased in many instances and particular in some competitive areas like floristry and insurance.
There are larger companies that advertise via Adwords and thus in the process of marketing repeatedly to new customers through other sources, pushing events etc amongst others. As in the case of insurance, the advertisers hope that the customers will never look out elsewhere after the first year, thus gaining their customer value up.
It makes it harder for smaller competitors for competing using Google adwords, thus becoming extremely crucial to avoid competitive single word phrases and finding niche long tail phrases that are still profitable.
Thus, in an ideal world, new advertisers to Adwords are needed to be prepared for this as well as recognize that it can be hard to break into certain areas of Adwords advertising until and unless they have a budget for allowing extensive keyword discovery during the first few weeks of a campaign.