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Just to elaborate on the quote:

If Adwords didn’t work, people wouldn’t buy it.

Yes it works.
But, is it as cost effective as other channels.

Irrespective of your advertising budget be it $100 a month or more. You want to be spending it on what works best and generates the most.

What works best is only found out via the cycle of:
1) Try
2) Measure
3) Refine, goto 1.

Just make sure you measure properly and capture the right data or you could be making a big mistake as I outlined in my previous post.