As someone who's spent over 20,000 hours building and optimising websites and running SEO and SEM campaigns, I've seen it all when it comes to Google Ads. One thing that stands out repeatedly is how businesses often burn through their ad budgets without realising it. They target irrelevant keywords, don't track their leads properly, and ultimately miss out on the real value that Google Ads can deliver.
In this blog, I'll discuss key lessons I've learned about ensuring your Google Ads spend is well-spent. These insights are based on my experiences running campaigns and some valuable best practices I've encountered.
The Hidden Dangers of Low-Cost Clicks
Time and again, I've logged into Google Ads accounts and seen click costs of $0.01, $1, or $2. Sure, low-cost clicks sound appealing but meaningful clicks that could lead to conversions usually start at $5 and up in any somewhat competitive space. In competitive markets, especially in dense areas like Melbourne and Sydney, valuable clicks often begin around $10. If you're paying less than that, you're probably attracting irrelevant traffic.
Let me give you an example. One of my clients—a roofing company—was baffled by the number of job inquiries they received. Why? Their ad showed up for people searching for things like "roof tile Bunnings," which led to irrelevant calls from people looking for a job or even trying to buy materials, not those needing roofing services. The low cost per click initially felt like a win, but in reality, it was burning their budget on irrelevant leads.
The DIY Trap: Setting Up Google Ads Without Knowing the Details
I've seen this repeatedly—business owners get excited when setting up their Google Ads. They pick a few keywords, launch their campaign, and wait for the traffic to roll in. But they don't realise that Google is often more than happy to take their money for clicks that don't matter. When you set up your campaign without fully understanding how keyword targeting works, you're more likely to throw in broad keywords that don't match the intent of your ideal customer.
There are dozens of different ways people might search for something online. Some queries might be purely informational—like "What is a roof tile?" or "How to become a roofer." While these keywords might sound relevant, they won't lead to sales. Instead, you need to focus on the specific, high-intent terms that indicate someone is ready to buy.
Why Tracking Your Leads is Essential
It's not enough to get clicks—you need to know where those clicks are going. One of the biggest problems I see is that businesses don't properly track their leads, so they have no idea whether their ads are actually working. You should ask your agency (or yourself, if you're managing the campaign): How are we tracking leads? What is considered a lead? Are all clicks leading to genuine inquiries?
One way to ensure proper lead tracking is to set up unique phone numbers or contact forms for each campaign. This allows you to track which ads bring in inquiries accurately and, more importantly, which leads to conversions. In my experience, businesses that don't track this information end up wasting money on clicks that don't translate into sales.
The Importance of Keyword Relevance
One of the most common issues I encounter is the use of overly broad keywords. These keywords might get you traffic, but it's not necessarily the right traffic. It would help if you were strategic about the keywords you're targeting. Broad Match keywords are often too wide-reaching, bringing in irrelevant queries and wasting your ad spend.
Instead, I always recommend using Phrase Match or Exact Match keywords. These match types give you much more control over which search queries trigger your ads. This ensures that your ad is shown only to people more likely to convert. In short, paying a little more for a high-quality lead is better than wasting money on low-cost clicks that don't convert.
Scaling What Works
Don't hesitate to scale when you find that sweet spot—when your Google Ads campaigns generate leads at $20 or $30 per inquiry in a competitive market. If you're converting one in every five leads and your average order value is high, say $1,000 or more, you're looking at a great return on ad spend.
The challenge is ensuring those leads are genuinely interested in your product or service. If they are, you should increase your budget. For instance, I often tell clients that if you're getting good-quality leads at $30 per lead and you convert one in every three or four, go ahead and put $5k or $10k into that campaign. You've already got the data proving that the campaign works—now it's time to scale.
How to Ensure You're Not Overpaying for Useless Clicks
Google and Bing have made it increasingly difficult to see where your money is going. They hide some of the more detailed reports on what specific queries are triggering your ads, which can lead to wasted spending on irrelevant clicks. This is why it's critical to keep asking questions. You need to understand exactly where your ad spend is going and whether the clicks you're paying for are turning into meaningful leads.
Every time I look at a client's ad account, I ask: Are we spending money on queries that matter? What kind of calls or inquiries are we getting due to our ads? You should also ensure you have a clear picture of how the cost per action (CPA) is calculated. Some agencies will track CPA based on a click-to-call button or a thank-you page, but if there's no follow-up on whether those actions turn into real leads, you're not getting the full picture.
Wrapping Up: Don't Be Afraid to Ask Questions
At the end of the day, the most important thing you can do when running Google Ads is to stay involved. Don't be afraid to ask your agency tough questions, or if you're running the ads yourself, dive deep into the reports. Understand where your money is going, track your leads carefully, and make sure you're using your budget wisely on relevant clicks.
If you see low click costs in a competitive market, it's time to ask questions. Are these clicks driving value? If not, adjust your strategy. Focus on high-intent keywords, track every lead, and when you find a winning campaign—don't be afraid to scale it.
By following these strategies, you can ensure that every dollar you spend on Google Ads delivers the value you expect, leading to more meaningful clicks, higher conversions, and a better return on investment.
