10 Ways You’re Wasting Money on Google Ads (And How to Fix Them)

Google Ads can be one of the most effective marketing platforms available. When managed properly, it delivers highly targeted traffic from people actively searching for your products or services. However, many advertisers unknowingly waste significant amounts of money due to poor campaign settings, misplaced trust in automation, and misunderstood optimisation tactics.

In this article, we’ll break down the top 10 ways businesses lose money on Google Ads and explain what you should do instead to improve performance and maximise return on investment.

1. Leaving the Display Network Enabled on Search Campaigns

One of the most common mistakes happens during campaign setup.

When creating a Search campaign, Google automatically ticks the option to include the Display Network. Many advertisers leave this enabled without fully understanding what it does.

The issue is that Search and Display campaigns serve very different purposes:

• Search campaigns target users actively searching for your services
• Display campaigns focus more on awareness and reach across websites and apps

By combining the two, you dilute your targeting and budget.

Why This Wastes Money

Search traffic is typically high-intent and bottom-of-funnel. These users are ready to take action. Display traffic is often much colder and less likely to convert immediately.

If your goal is lead generation or direct sales, splitting your budget across both networks can reduce efficiency.

What to Do Instead

• Keep Search campaigns focused exclusively on Search
• Create separate Display campaigns with their own targeting and objectives
• Allocate separate budgets for awareness campaigns

This gives you better control over performance and reporting.

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2. Using the Search Partner Network

Google also enables the Search Partner Network by default in many campaigns.

This extends your ads beyond Google Search to partner websites and search engines.

While it sounds beneficial in theory, the traffic quality is often much lower.

Common Problems With Search Partners

Advertisers frequently report:

• Lower conversion rates
• Poor lead quality
• Higher levels of suspicious or fraudulent clicks
• Reduced visibility into where traffic is coming from

Many experienced advertisers disable Search Partners entirely unless data proves otherwise.

Best Practice

Test it cautiously. If performance is poor compared to standard Google Search traffic, switch it off.

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3. Over-Budgeting Campaigns

A bigger budget does not automatically mean better results.

Many advertisers increase budgets dramatically even when there isn’t enough search volume to support the spend.

The Hidden Problem

If you use Smart Bidding strategies, Google will aggressively try to spend your allocated budget.

When demand is limited, Google may:

• Increase CPCs significantly
• Enter more expensive auctions
• Lower targeting precision

This often leads to inflated costs without additional conversions.

Example

If your campaign consistently spends £100 per day effectively, setting the budget to £500 per day does not magically create more customers.

Instead, Google may simply bid more aggressively for the same traffic.

What to Do Instead

• Scale budgets gradually
• Monitor CPC increases carefully
• Base budget decisions on actual search demand

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4. Relying Too Heavily on Broad Match Keywords

Google strongly encourages advertisers to use Broad Match keywords. While Broad Match can work in some situations, it is often overused.

Why Broad Match Can Be Dangerous

Broad Match gives Google significant freedom in deciding which searches trigger your ads.

Without enough conversion data, this can result in:

• Irrelevant clicks
• Poor-quality traffic
• Higher acquisition costs

When Broad Match Works Best

Broad Match tends to perform better when:

• Accounts have large amounts of conversion data
• Smart Bidding is well-trained
• Campaigns already perform consistently

For smaller accounts, it often creates unnecessary waste.

A Better Alternative

Start with:

• Phrase Match
• Exact Match

Then test Broad Match carefully and compare results using real data.

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5. Excluding Devices Based on Performance

Many advertisers remove mobile or desktop traffic because one device shows a higher cost per conversion.

This can actually reduce overall performance.

Why Device Exclusions Can Hurt Results

With Smart Bidding, Google already adjusts bids dynamically based on device performance.

Even if mobile conversions are slightly more expensive, they may still contribute positively to overall campaign profitability.

Removing devices completely often reduces:

• Conversion volume
• Reach
• Data quality

Focus on Overall Performance

Instead of judging individual devices in isolation, evaluate:

• Total return on ad spend (ROAS)
• Overall CPA
• Total conversion value

If the campaign as a whole is profitable, device variations are normal.

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6. Enabling Auto-Apply Recommendations

Google heavily promotes automated recommendations inside accounts.

Many advertisers accept these suggestions automatically without reviewing them properly.

Why This Is Risky

Google’s recommendations often encourage:

• Broader targeting
• Increased budgets
• More automation
• Additional keywords
• Extra campaign types

While these changes may increase conversion volume, they frequently increase costs much faster than profitability.

The Real Issue

Google’s goal is often increased ad spend, not necessarily improved efficiency.

What You Should Do

Disable auto-apply recommendations and maintain manual control over campaign changes.

Review recommendations individually instead of accepting everything automatically.

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7. Allowing Dynamic Assets to Run Unchecked

Dynamic Assets allow Google to generate ad content automatically using your website content.

This includes:

• Images
• Callouts
• Headlines
• Descriptions

The Problem With Dynamic Assets

Google’s automatically selected assets are often:

• Irrelevant
• Poorly formatted
• Off-brand
• Low quality

For example, Google may pull random website images that do not support the ad properly.

Best Practice

Create your own assets manually:

• Upload high-quality images
• Write custom callouts
• Control your messaging

This ensures consistency and relevance.

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8. Obsessing Over Optimisation Score

Google Ads displays an “Optimisation Score” prominently throughout the platform.

Many advertisers assume that achieving 100% means perfect campaigns.

That is not true.

What Optimisation Score Really Means

The score simply measures how closely your account aligns with Google’s recommendations.

It does not measure:

• Profitability
• Lead quality
• Revenue
• Business success

Why Chasing 100% Can Be Expensive

Trying to improve optimisation score often leads advertisers to:

• Add unnecessary keywords
• Expand targeting too broadly
• Launch campaign types they do not need
• Increase automation unnecessarily

The Right Approach

Focus on:

• Real business metrics
• Conversion quality
• Return on investment
• Profitability

Not a platform-generated score.

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9. Restricting Ad Schedules Too Aggressively

Many businesses only run ads during office hours.

While this sounds logical, it often limits valuable traffic.

Why This Can Be a Problem

Potential customers search at all times:

• Evenings
• Weekends
• Early mornings

If your ads are offline, competitors capture those searches instead.

This Matters Especially for Lead Generation

Even if your business is closed, users can still:

• Submit contact forms
• Send enquiries
• Leave voicemail messages

You can follow up later during business hours.

Recommended Strategy

Unless data proves otherwise:

• Run campaigns 24/7
• Analyse performance by hour
• Optimise based on real conversion data

Avoid assumptions about when customers search.

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10. Starting With Performance Max Instead of Search

Performance Max campaigns are heavily promoted by Google and its support teams.

However, many advertisers use them too early.

Why Search Should Come First

Search campaigns target users actively searching for your products or services right now.

This makes Search the highest-intent traffic source inside Google Ads.

Performance Max spreads ads across:

• YouTube
• Display
• Gmail
• Discover
• Search
• Shopping

This broader approach can work, but it requires strong data and strategy.

When Performance Max Makes Sense

Performance Max is usually more effective when:

• You already have successful Search campaigns
• Your Search campaigns have plateaued
• You operate an eCommerce business
• You have a well-optimised product feed

Best Practice

Start with Search campaigns first.

Master your:

• Keywords
• Conversion tracking
• Landing pages
• Bidding strategies

Then expand into Performance Max once you have reliable performance data.

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Final Thoughts

Google Ads can generate incredible results, but only when campaigns are managed strategically.

Many of the platform’s default settings and automated recommendations are designed to encourage more spending, not necessarily better performance.

To reduce wasted ad spend:

• Maintain control over your campaigns
• Question Google’s recommendations
• Prioritise data-driven decisions
• Focus on profitability rather than automation

Small changes in campaign structure and settings can dramatically improve return on investment over time.

The advertisers who consistently succeed with Google Ads are usually the ones who stay actively involved rather than handing complete control to automation.