Digital MarketingLearnThe Most Common Way Business Owners Waste Money on Google Ads

The Most Common Way Business Owners Waste Money on Google Ads

Last Updated May 08, 2025.

Google Ads can be a useful source of leads – but for many small and mid-sized businesses, it quietly burns through the budget without much to show for it. The most common reason? Targeting too broadly, without a clear plan.

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If you’re spending money on clicks but not seeing real enquiries or sales, it probably isn’t because Google Ads “doesn’t work.” It’s more likely that the wrong people are clicking, or that you’re not measuring what happens after they do.

The Real Problem: Paying for the Wrong Traffic

Most wasted ad budgets come from paying for visits that were never likely to become customers.

This happens when:

  • You target broad, generic search terms like “accounting services”
  • You allow Google to place ads with minimal filters
  • You don’t define things like location, device type, or schedule

You may end up paying for clicks from people outside your service area, using the wrong device, or looking for something you don’t actually offer.

Letting Google Take Too Much Control

Google encourages Smart Mode and automated settings, especially for new advertisers. But left unchecked, they often prioritise spend over results.

If you haven’t:

  • Set your own locations, times, and devices
  • Switched off the display network when it’s not relevant
  • Defined what a lead or enquiry looks like

…then you’re giving up too much control. And that can get expensive.

Why Broad Match Keywords Often Miss the Mark

Broad match keywords cover a lot more than you think. If you bid on “web design,” you might also appear for:

  • “learn web design free”
  • “web design internships”
  • “how to become a web designer”

That’s not the kind of traffic that turns into a sale.

Instead:

  • Use phrase match and exact match for better targeting
  • Keep a list of negative keywords to exclude irrelevant searches
  • Review your Search Terms report regularly and adjust

Sending Traffic to the Wrong Page

Even with good targeting, if you send someone to a slow, generic, or cluttered page, they’ll leave. That’s money gone.

But it’s not just about speed. If your landing page looks outdated, low effort, or doesn’t reflect the kind of business someone would trust with their money – it creates doubt. First impressions matter. A poorly designed or unprofessional-looking page can turn off even the right audience.

It’s a common mistake to send ads to the homepage or a service page with too many distractions.

A better approach:

  • Use a clear landing page with one goal (like a booking or enquiry form)
  • Improve page speed with tools like PageSpeed Insights
  • Make sure the design reflects the quality and professionalism of your business
  • Check that tracking tools are working before sending traffic

No Conversion Tracking = No Useful Data

Clicks don’t tell you much. You need to know what people actually do after they arrive.

If you’re not tracking form fills, calls, or bookings, you’re missing key information – and Google can’t optimise without it.

Make sure you:

  • Use GA4 to track real actions (like form submissions or calls)
  • Set up Google Tag Manager to handle event tracking
  • Connect your conversions to your Google Ads account

Why Google Ads Budgets Get Wasted (Checklist)

MistakeWhy It Wastes BudgetQuick Fix
Broad keyword targetingBrings in people who won’t convertUse phrase/exact match
Smart mode / default settingsPrioritises spend, not resultsUse expert mode and manual setup
Generic landing pagesNo clear next step for the visitorBuild focused, fast landing pages
No conversion trackingCan’t measure or improve anythingTrack events with GA4 + GTM
Ignoring negative keywordsAds show up in the wrong searchesAdd and maintain a blocklist

FAQs About Google Ads Waste

Why is my Google Ads campaign not converting?
Usually because you’re targeting too broadly, using weak landing pages, or not tracking conversions properly.

Is Smart Mode in Google Ads a bad idea?
Smart Mode can work for simple campaigns, but it often lacks the control needed to get good returns – especially for service-based businesses.

Should I use broad match keywords in Google Ads?
Broad match can work if you’re using strong exclusions and have a large budget – but most small businesses see better results with phrase or exact match.

Take Action

Google Ads can absolutely work – but only if you control who sees your ads, what happens after they click, and whether those clicks lead to anything useful.

We help small businesses avoid common pitfalls and make better use of their ad spend.

Written by Ash at Outfox SEO
Last updated: 1 April 2025
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