According to a recent study by Adobe, most companies spend a ratio of $92 to only $1 on online advertising vs. conversion rate optimization.

In other words, most businesses spend 92X more on online advertising and bringing in traffic -through Google AdWords and Search Engine Optimization - and then spend miniscule amounts on actually turning that traffic into sales and profit.

This is a backwards approach to digital marketing. Businesses should first fine tune their websitesto ensure that they are functioning as automated profit making machines. Once that has been accomplished, then they should focus on spending money to open the flood gates of traffic. Otherwise, that traffic inevitably just trickles out - and your money is poured down the drain.

As with most businesses, much time is spent focusing on the daily operations - improving website conversion gets put to the side. The opportunity for growth and profit is lost.

While this opportunity is lost - competitors are capitalizing on their website's performance and stealing your market share. Not to mention, your customer acquisition cost gets higher and higher.

In contrast, when your conversion rate increases, you can suddenly afford to advertise more aggressively and expand your media channels because cost-per-acquisition has gone down dramatically.

With this additional room in your budget, you can now invest in bigger marketing campaigns, get further reach, pay affiliates a higher commission, hire extra staff and do more business building activities that make the business grow and grow.

This is why Conversion Rate Optimization is so important for online businesses all around the globe.