How to Reduce Wasted Ad Spend in Google Ads

Google Ads is one of the most powerful digital advertising platforms, but without a well-optimised strategy, businesses often waste a significant portion of their budget on irrelevant clicks, unqualified leads, and inefficient campaigns. To maximise return on investment (ROI), it’s essential to identify and eliminate wasted ad spend.

Here’s how to fine-tune your Google Ads campaigns and ensure every pound is spent wisely.

1. Use Negative Keywords to Filter Out Irrelevant Traffic

One of the biggest reasons for wasted ad spend is irrelevant clicks. Many businesses fail to add negative keywords, leading to their ads appearing for unrelated searches.

How to Fix This:

• Regularly review the Search Terms Report in Google Ads to identify irrelevant searches.
• Add negative keywords to prevent ads from showing for low-intent queries.
• Use match types strategically – Broad Match can drive traffic but may attract irrelevant searches, so consider Phrase Match or Exact Match for better control.

For example, if you’re selling luxury watches, adding “cheap” or “free” as negative keywords ensures you’re not paying for clicks from people looking for budget alternatives.

2. Optimise Ad Targeting & Audience Segmentation

Many advertisers waste money by targeting too broad an audience or failing to use Google’s advanced targeting options effectively.

How to Fix This:

• Use location targeting to show ads only in relevant areas. If you’re a local business, exclude locations outside your service area.
• Refine audience segmentation using demographics, interests, and in-market audiences.
• Implement remarketing campaigns to target users who have previously interacted with your website.

For example, if you run an online clothing store, you can target users who have visited your site but haven’t completed a purchase, increasing the chances of conversion.

3. Improve Quality Score to Reduce Cost-Per-Click (CPC)

Google assigns a Quality Score (1-10) to your ads based on ad relevance, expected click-through rate (CTR), and landing page experience. A low Quality Score results in higher CPCs and wasted ad spend.

How to Fix This:

• Ensure your ad copy matches user intent and includes relevant keywords.
• Improve landing page experience with faster load times, mobile optimisation, and clear CTAs.
• Write engaging ad headlines and descriptions that encourage clicks from the right audience.

A well-optimised ad with a high Quality Score can lead to lower costs and better ad placements.

4. Avoid Broad Match Keywords Without Proper Control

While Broad Match can increase reach, it often leads to unqualified traffic and wasted spend.

How to Fix This:

• Use Phrase Match or Exact Match for more control over who sees your ads.
• Combine Broad Match with Smart Bidding strategies to let Google optimise based on intent.
• Monitor and refine keywords regularly to ensure they align with user behaviour.

For instance, instead of bidding on “running shoes” (Broad Match), you might use “best running shoes for marathon training” (Phrase Match) to attract high-intent customers.

5. Use Smart Bidding to Automate & Optimise Performance

Manual bidding can result in wasted spend if bids are too high or too low. Google’s Smart Bidding uses AI to optimise bids in real time.

How to Fix This:

• Use Target CPA (Cost-Per-Acquisition) to maximise conversions at an efficient cost.
• Try Maximise Conversions if you want Google to prioritise getting more sales.
• Test different bidding strategies to find what works best for your business goals.

Smart Bidding helps reduce manual guesswork and improves overall campaign efficiency.

6. Track Conversions Properly & Adjust Budget Allocation

Many businesses waste ad spend because they fail to track conversions properly, leading to poor budget allocation.

How to Fix This:

• Set up Google Ads conversion tracking to measure actual sales or leads.
• Use Google Analytics 4 (GA4) to track user behaviour and refine ad targeting.
• Shift budget from underperforming campaigns to high-converting ones based on real data.

For example, if you notice that mobile users convert better than desktop users, allocate more budget to mobile-optimised campaigns.

7. Regularly Review & Optimise Underperforming Ads

A common mistake is setting up ads and forgetting about them. Continuous monitoring and testing are essential for reducing wasted spend.

How to Fix This:

• Conduct A/B testing on ad copy, images, and CTAs.
• Pause or remove low-performing ads and keywords.
• Review performance metrics weekly to adjust bidding, targeting, and budgets accordingly.

Conclusion

Reducing wasted ad spend in Google Ads requires proactive management, data-driven optimisation, and strategic targeting. By implementing negative keywords, refining audience segmentation, optimising ad copy, and leveraging Smart Bidding, businesses can significantly improve ROI and reduce unnecessary costs.

If you need an expert PPC ad agency to maximise your ad budget, Finsbury Media can help optimise your Google Ads strategy for better performance and higher conversions.