Google Ads has a reputation as an expensive way to lose money, and plenty of advertisers have earned it the hard way. They switch it on, spend a fortune, get a trickle of junk leads and decide "Google does not work for us."
Google works fine. When an account bleeds, the cause is nearly always intent. Fix that and the same budget starts buying customers.
Google Ads wastes money when you pay for searches from people who aren't ready to buy, then send them to a page that doesn't match what they typed. The fix has three steps. Target high-intent searches. Block the wrong ones. Match every ad to a page built for that exact search.
Not all searches are created equal
Someone typing "what is cold plunge therapy" is curious. Someone typing "cold plunge tub buy near me" is reaching for a wallet. Pay the same to reach both and you are setting money on fire. A leaky account pours budget into the curious searches, then blames the platform for the empty pipeline.
You are not buying clicks on Google. You are buying intent. Buy the wrong intent and every click is a small donation.
Sort your searches into three buckets.
- Learning searches. "What is," "how does," "ideas for," "why is my." These people want information. They might buy one day, but not today, and content and SEO serve them better than paid clicks.
- Comparing searches. "Best," "vs," "reviews," "cost of." These people are weighing options. Bid on them selectively, with a page built to win the comparison.
- Buying searches. "Near me," "buy," "book," "quote," "hire," "emergency," a specific product name. These people have a problem and money to fix it. Most of your budget belongs here.
We look at how search habits are shifting, and what that does to intent, in fewer people are searching, the ones left are ready to buy.
Where the money leaks
The obvious leaks first. You bid on "what is" searches when you should be bidding on "quote" and "near me" ones. You have no negative keywords, so you pay for searches that will never turn into a sale. Every click lands on the homepage. The campaign is tuned for cheap clicks instead of customers. And nothing ties together what the person searched, what your ad promised and what the page delivers.
Two more don't show up until you look.
- Loose match types left running unchecked. With broad match, Google says your ads can show on searches that are related to your keyword, including ones that don't contain it. That can surface good searches you'd never have thought of. It can also match you to rubbish. Without a weekly look at the search terms report, you won't know which is happening.
- Counting the wrong conversions. Google bids toward whatever you mark as a primary conversion action. If that's a page view or a newsletter sign-up, Google will happily find you more of those. Your dashboard looks healthy while your sales team starves.
How to find the leak in your own account
You don't need to be a Google Ads specialist for this. Block out one hour.
- Open the search terms report for the last 30 days. It lists the searches that triggered your ads, which are often a long way from the keywords you chose. Sort by cost.
- Mark every search as buy, compare, learn or irrelevant. Be honest. "Free," "jobs," "DIY," "course," "salary" and "how to" are usually red flags for a business selling a service.
- Add up the spend on learn and irrelevant searches. That's your leak, in dollars.
- Check your conversion settings. Under Goals, look at what counts as a conversion. If it's anything short of a real enquiry, call or sale, fix that first.
- Check where each ad sends people. Use Google's Ad Preview and Diagnosis tool so you don't rack up impressions on your own ads, then open the landing page. Does it answer what the searcher asked for before they have to scroll?
For a version of this audit that covers every channel, see the audit that finds your wasted ad spend.
The fix is intent, end to end
Winning on Google means chasing buyers and letting the browsers go. Do it at every link in the chain and your cost per customer can drop sharply on the same platform and the same budget.
- The keyword. Built around buying language and specific services, grouped tightly so each group covers one intent.
- The negatives. Negative keywords are the words and phrases you never want to pay for. Keep a living list and add to it every week from the search terms report. They don't cover close variants, so add plurals and synonyms yourself.
- The ad. Repeats the searcher's words back to them, then gives one reason to choose you over the other ads on the page.
- The landing page. Continues the promise of the ad. Same words in the headline, proof close by, and a single action to take. Our breakdown of a landing page that prints money covers what goes on it.
- The conversion. A real enquiry or a purchase, ideally with sales outcomes fed back into Google so it learns which clicks became customers.
A worked example: the emergency plumber
Say you run a plumbing business in Adelaide spending $4,000 a month on Google Ads. You're bidding on "plumber," "plumbing," and "blocked drain" on broad match. Every ad goes to your homepage. Conversions are counted as "any visit to the contact page." Google reports plenty of conversions. Your phone doesn't ring much.
The search terms report shows money going to "plumber salary," "plumbing apprenticeship," "how to unblock a drain yourself" and "plumbing supplies near me." None of those people want to hire you.
So you rebuild. Campaigns get split by intent: emergency searches ("emergency plumber Adelaide," "burst pipe plumber now") and planned work ("hot water system replacement quote"). In go negatives for salary, jobs, apprenticeship, DIY, how to and supplies. You build two landing pages. The emergency page has a big tap-to-call button and your response time front and centre. The hot water page has pricing guidance and a quote form. Last, you change what counts as a conversion to submitted quote forms and phone calls that run past a minimum call length you set.
Same $4,000. Fewer clicks, most likely, because you've stopped paying for the junk. But every click now comes from someone with a problem you fix, landing on a page that fixes it. (The business and figures here are hypothetical. The levers are the ones you'd pull in a real account.)
How to measure whether it's working
Most Google Ads reports lead with clicks, impressions and click-through rate. Those tell you whether people noticed your ad. They can't tell you whether you made money. Once intent is fixed, judge the account on these instead.
- Cost per qualified lead. Total spend divided by the enquiries your team would want to take. Leave out the junk form fills.
- Cost per customer. Total spend divided by the people who paid you. This is the number that matters most, and it needs your sales records as well as the Google dashboard.
- Value versus cost. What a new buyer is worth to you over the first year, set against what it cost to win them. A buyer worth $2,000 who costs $300 to acquire is a machine. One worth $400 who costs $500 is a hobby.
To get there, you need a way to connect ad clicks to sales. The basic version is asking every new enquiry "how did you find us?" and logging it in a spreadsheet. The thorough version sends closed sales from your CRM back into Google, which it calls enhanced conversions for leads. Either beats trusting the default dashboard, and the second gives Google's bidding real customers to learn from. (The dollar figures above are illustrations. Yours depend on your margins.)
What about Google's AI campaigns?
Google keeps moving advertisers toward campaign types that decide more of the targeting for you. The latest step is upgrading Dynamic Search Ads to AI Max. Automation isn't the enemy. Automation pointed at the wrong goal is. If your conversions are junk and your landing pages are generic, the machine will get very efficient at buying you junk.
Feed it real conversion data and send the traffic to pages built around buyer intent, and it has something worth optimising toward. We explain what's changing, and how to protect yourself, in Google is moving your campaigns to AI Max.
Common mistakes after the fix
- Cutting budget the moment clicks drop. Fewer, better clicks is the goal. Judge on cost per customer.
- Setting negatives once and forgetting them. New junk searches keep turning up. The search terms report is a weekly habit.
- Building one landing page for everything. One page per intent is the minimum. One per service is better.
- Not answering the phone. It sounds obvious, but a person searching "emergency plumber" calls the next business if you don't pick up. Your ad spend is only as good as your response time.
- Judging too early. Give the rebuilt account a few weeks of clean data before you call it.
You don't have a Google problem
We rebuild Google campaigns around intent, so every dollar chases someone with their wallet already half out. That's how our advertising team approaches every account: find the leak, fix the conversion data, rebuild around buying searches and match every ad to a page that closes.
If Google feels like a money pit, you do not have a Google problem. You have an intent problem. Let's fix it.
Frequently asked questions
Why am I getting clicks but no sales from Google Ads?
Clicks without sales usually mean you're paying for the wrong searches, sending people to a page that doesn't match what they searched, or counting the wrong actions as conversions. Check the search terms report for irrelevant or research-only searches, add negative keywords, point each ad at a matching landing page and make sure Google only counts real enquiries or sales.
What are negative keywords in Google Ads?
Negative keywords are words or phrases you tell Google not to show your ads for. If you sell a plumbing service, adding "salary," "jobs," "DIY" and "course" as negatives stops you paying for people looking for work or free instructions. Build the list from your search terms report and add to it every week, because new irrelevant searches keep appearing.
Should I send Google Ads traffic to my homepage?
Usually not. Your homepage speaks to everyone, so it rarely answers the specific search that triggered the ad. A dedicated landing page that repeats the searcher's words, shows relevant proof and offers one clear next step is the better bet. Build at least one page per intent, such as emergency work versus planned quotes.
How much should a small business spend on Google Ads?
Start with what you can afford to test for a couple of months without panic, then let cost per customer guide you. A smaller budget focused on high-intent searches can beat a big budget spread across everything. Once you know what a customer costs and what one is worth, scaling becomes a maths decision.