One of my clients, Company Y, decided to save money a few months ago by cutting their Google AdWords budget to zero. They saved several thousand dollars in monthly expenses and saw on-line sales drop by ~$25K, or 30%. Ouch!

Even counting the cost of the products sold plus ad costs, the company took a big hit in bottom line profits by cutting their AdWords budget.

What happened and what is the AdWords Halo Effect?