Online shops
When not to advertise yet
Four situations where paid traffic is the wrong place to put the money — and the arithmetic that shows why, before anyone spends a month finding out.
The call usually goes like this. Sales are flat, the shop has been live for a while, and somebody has suggested advertising. How much should we put in?
It is the wrong first question, and answering it politely costs people a lot of money. The right first question is whether the shop can currently turn a paid visitor into a profitable order at all — and that is arithmetic, not opinion.
Here is a shop of a fairly ordinary shape. Basket around two hundred and sixty dirhams, gross margin around forty-five percent, so roughly a hundred and seventeen dirhams left on an order before anything is spent on getting it. A click in a competitive category costs three dirhams. The shop converts at 1.4 percent, which is unremarkable and entirely normal.
One order, at today’s conversion rate
- AED 214what the clicks cost — 71 of them
- AED 117what the order is actually worth
- −AED 97the difference, every single time
Ninety-seven dirhams lost per order, reliably, for as long as the budget lasts. And the shop looks busier while it happens, which is the part that makes it hard to stop.
Advertising does not fix a shop. It bills you faster for what is already wrong.
Four cases where the answer is not yet
The shop does not convert yet. The case above. Everything you spend is multiplied by a conversion rate you have not fixed, so a weak shop does not stay quietly weak — it becomes expensive at scale. This is by far the most common of the four.
The margin cannot carry a click. Some ranges simply cannot be advertised at retail prices, and no amount of campaign skill changes that. If the break-even conversion rate is higher than any shop in your category achieves, the answer is a different product mix or a different channel, not a better agency.
Nothing is measured properly. Without working conversion tracking you are not advertising, you are donating. You will have spend, clicks and a feeling. Six weeks later nobody can say which half worked, so nothing is learned and the next month starts from zero again.
Nobody is searching for it yet. Search advertising captures demand that already exists. If your category has no meaningful search volume, you are paying to create demand — which search ads are poor at, and which other channels do far better for the same money.
None of these four is a reason never to advertise. They are reasons to do something else first, and all four are temporary — three of them can be resolved in a few weeks.
What the same money does instead
Take the shop above and change one thing: the conversion rate, by fixing what the product pages do not currently answer.
At 2.8 percent — double, which sounds heroic but is routine on a shop that never had the basics done — the cost per order drops to about a hundred and seven dirhams. Against a hundred and seventeen of margin, the campaign now makes about ten dirhams an order. It has moved from a reliable loss to roughly break-even.
At 4.2 percent it earns about forty-five dirhams an order, and the same budget that was burning money is now the best-spending line in the business.
The campaign did not change. The shop behind it did.
That is the whole argument for the order of operations, and it is also why we say no to advertising work more often than we take it on. Running campaigns for a shop that converts at 1.4 percent is a comfortable monthly fee for us and a slow loss for the client.
Three things to do before a single dirham
Work out the break-even
Divide your click cost by your margin per order. That is the conversion rate you need before advertising makes any sense. If it is above three percent, the shop needs work first — not a campaign.
Fix the five pages that sell
Not all of them. The five products that already move. Answer the questions that currently stop a purchase, wait a month, and read the difference in your own figures.
Make sure it is measured
Conversion tracking that records actual order value, not just that something happened. Without it the first month of any campaign is spent buying data you could have had for free.
The second of those is where almost all of the movement comes from, and it is the cheapest of the three. What to put on those pages is the four questions that stop a purchase — an afternoon of work for five products.
And when the answer is yes
Plenty of shops are ready, and for them advertising is straightforward and works from the first week. Decent margin, a shop that converts at a normal rate, tracking in place, real search volume in the category. If that is you, the four cases above do not apply and we would say so.
What we would not do is take the budget first and find out afterwards. How we run campaigns when the shop is ready, and what we measure them against, is on our Google Ads page. What comes before that is conversion work, and it is almost always the better first invoice.
Send us the numbers, not the budget.
Basket value, rough margin, current conversion rate. We will work out the break-even and tell you whether advertising is the right next spend — including when the answer is no, which it often is.