Seth Godin raised an interesting question in a recent blog post entitled: Do Ads Work? This question is something  small business owners ask on a regular basis.  In the article he says:

So, why, precisely, do you have an ad budget? If your ads work, if you can measure them and they return more profit than they cost, why not keep buying them until they stop working? And if they don’t work, why are you running them? The time-tested response is that you’re not sure, that ads are risky, that you can’t tell.

He continues as he says the same should hold true to your digital ads. If you are spending money on Google ad words, spend well Make sure you ar getting a return. Not just web traffic but conversions. When people come to your website, what do they do? Buy, sign up request information or leave If they leave, without taking the next step, your ads aren’t working. Possibly because you haven’t given them the tools to work.

And on the other side, if your ads are working, and you are getting traffic and conversion, why do you have a cap on your spending.  As Seth says  if your ads work, why is there a limit? Can you spend too much?