Last week, I sat down with Sarah, a plumbing company owner who'd spent $4,200 on Google Ads over three months. Her result? Exactly two phone calls. Neither became customers.
"I thought Google Ads were supposed to work," she told me, frustration evident in her voice. "I'm basically just donating money to Google at this point."
Here's the thing: Google Ads do work. But not when you're making these five critical mistakes that I see small business owners make over and over again.
I've audited hundreds of Google Ads accounts for small businesses, and I can tell you right now—if your ads aren't working, it's probably not Google's fault. You're likely doing at least one (or all) of these budget-killing mistakes.
Let me show you what's going wrong and how to fix it.
Mistake #1: You're Using Broad Match Keywords Like They're Confetti
This is the big one. The budget killer. The reason Sarah was getting clicks from people searching "how to unclog a drain with baking soda" instead of "emergency plumber near me."
When you use broad match keywords in Google Ads, you're basically telling Google, "Hey, show my ad for anything you think is kinda related to this word." And Google will take you up on that offer—enthusiastically.
Why This Hurts Your Results
Let's say you bid on the broad match keyword "plumber." You think you're reaching people who need a plumber, right?
Wrong. Google might show your ad for:
- "plumber salary" (job seekers, not customers)
- "plumber meme" (people looking for laughs, not leaks)
- "plumber's crack" (do I even need to explain?)
- "Mario the plumber" (video game fans)
You're paying for every single one of those clicks. And none of them are calling you for business.
According to WordStream's 2024 industry benchmarks, businesses using broad match keywords waste an average of 76% of their ad spend on irrelevant clicks. That's three out of every four dollars going down the drain.
How to Fix It
Switch to phrase match or exact match keywords. Here's what that looks like:
Broad match: plumber
Phrase match: "emergency plumber"
Exact match: [emergency plumber near me]
Phrase match gives you some flexibility while keeping you relevant. Exact match is ultra-specific but can limit your reach. I usually recommend starting with phrase match and using exact match for your highest-performing keywords.
Also, and this is crucial: add negative keywords. These tell Google what searches you DON'T want to show up for.
For Sarah's plumbing business, I added negative keywords like: salary, jobs, career, DIY, how to, Mario, meme, and video. Her irrelevant clicks dropped by 81% in the first week.
Mistake #2: You're Sending Everyone to Your Homepage
I get it. Your homepage is beautiful. You spent good money on it. But it's not a landing page, and that's costing you conversions.
When someone clicks your ad for "emergency water heater repair," they don't want to land on your homepage with its generic "Welcome to Joe's Plumbing!" headline. They want to see a page about emergency water heater repair—immediately.
Why This Hurts Your Results
Think about how you shop online. You click an ad for "men's running shoes size 11," and you land on the homepage of a sporting goods store. What do you do?
If you're like 73% of people (according to a 2024 Unbounce study), you bounce. You hit the back button and try the next result.
Every bounce is money wasted. You paid for that click, and the person left without even considering your service.
Google also tracks your bounce rate and uses it to determine your Quality Score. High bounce rate = low Quality Score = higher costs per click = more wasted budget. It's a vicious cycle.
How to Fix It
Create dedicated landing pages for each service you're advertising. If you're running ads for emergency plumbing, water heater repair, and drain cleaning, you need three landing pages.
Each landing page should:
- Match the headline of your ad (if your ad says "24/7 Emergency Plumber," your landing page headline should too)
- Have ONE clear call-to-action (usually a phone number or form)
- Remove navigation menus that distract people from converting
- Include trust signals like reviews, years in business, and guarantees
- Load fast (under 3 seconds or people bounce)
When I helped Sarah create service-specific landing pages, her conversion rate jumped from 0.6% to 8.2%. Same budget, 13x more customers.
Mistake #3: You're Not Tracking Conversions (So You're Flying Blind)
This one blows my mind every time I see it, but it's shockingly common. I've audited accounts spending $5,000+ per month with zero conversion tracking set up.
That's like driving cross-country with a blindfold on. Sure, you might eventually get somewhere, but you'll crash a lot and waste a ton of gas along the way.
Why This Hurts Your Results
Without conversion tracking, you don't know:
- Which keywords are bringing you customers (vs. tire kickers)
- Which ads are actually generating phone calls
- What time of day your best leads come in
- Whether your budget is going to the right campaigns
You're making decisions based on gut feeling instead of data. And I can promise you, your gut is wrong more often than it's right.
Google's own data shows that advertisers who track conversions see a 30% higher ROI than those who don't. Why? Because they can optimize what's working and kill what isn't.
How to Fix It
Set up conversion tracking today. Not tomorrow. Today.
Here's what you need to track:
- Phone calls: Use Google's call tracking or a service like CallRail
- Form submissions: Track contact form completions as conversions
- Live chat initiations: If you have chat on your site, track it
- Direction requests: For local businesses, people clicking for directions is valuable
Once tracking is set up, you'll start seeing which keywords actually make your phone ring. Then you can shift budget from the duds to the winners.
Fair warning: setting up conversion tracking can be technical. If you're not comfortable with Google Tag Manager and tracking pixels, hire someone to do it right. It's worth every penny.
Mistake #4: You're Ignoring Your Search Terms Report
Your Search Terms Report is like a treasure map that shows you exactly where people are finding you. And most business owners never even look at it.
This report shows you the actual phrases people typed into Google before clicking your ad. It's different from your keyword list—it's reality vs. your assumptions.
Why This Hurts Your Results
When I pulled Sarah's Search Terms Report, here's what I found:
- "plumber salary in Tennessee" - 47 clicks, $94 wasted
- "how to become a licensed plumber" - 23 clicks, $51 wasted
- "plumber game online free" - 18 clicks, $36 wasted
- "plumber job openings" - 31 clicks, $68 wasted
That's $249 in one month on searches that had ZERO chance of becoming customers. Over a year, that's $2,988 straight into the garbage.
And these are just the obvious ones. There were dozens more that were less obviously wrong but still unlikely to convert.
How to Fix It
Check your Search Terms Report every week. Here's how:
- Log into Google Ads
- Click on a campaign
- Click "Keywords" in the left menu
- Click "Search Terms" at the top
- Look for irrelevant searches getting clicks
When you find irrelevant terms, add them as negative keywords immediately. Be ruthless about this.
I also look for opportunities. Sometimes you'll see search terms you didn't think to bid on that are converting well. Add those as new keywords!
This 15-minute weekly habit has saved my clients tens of thousands of dollars. It's the highest-ROI activity you can do in your Google Ads account.
Mistake #5: You're Competing on Price Instead of Value
"Cheapest plumber in Nashville!"
"Lowest prices guaranteed!"
"We'll beat any competitor's quote!"
If this is how you're positioning yourself in your ads, you're training customers to shop on price alone. And you can't win that game.
Why This Hurts Your Results
When you compete on price, you attract price shoppers. These are the people who:
- Call 10 different companies looking for quotes
- Never actually book (they're "just getting prices")
- Take forever to make a decision
- Complain about every charge
- Leave bad reviews if you're not the absolute cheapest
Plus, there's always someone willing to go cheaper than you. Someone less experienced, less insured, less qualified. You don't want to compete with them.
According to a 2024 study by Duct Tape Marketing, small businesses that compete on value instead of price have a 54% higher customer lifetime value and 38% better profit margins.
How to Fix It
Shift your messaging to focus on value, not price. Talk about:
- Speed: "Same-day emergency service" beats "cheap plumber"
- Reliability: "20+ years in business, A+ BBB rating"
- Guarantee: "100% satisfaction guarantee or your money back"
- Expertise: "Licensed, bonded, and certified in all 50 plumbing specialties"
- Results: "Fixed right the first time—98% first-visit resolution rate"
When Sarah changed her ad copy from "Affordable plumbing services" to "24/7 emergency plumber—licensed, guaranteed, same-day service," her cost per lead dropped by 42%. Why? Because she was attracting serious buyers instead of price shoppers.
Yes, you'll get fewer clicks. But the clicks you get will be WAY more likely to convert into paying customers.
How to Fix All Five Mistakes (Your Action Plan)
I know that's a lot. If you're feeling overwhelmed, here's what I'd do if I were you:
This week:
- Set up conversion tracking (or hire someone to do it)
- Check your Search Terms Report and add negative keywords
- Change at least one keyword from broad to phrase match
This month:
- Create a dedicated landing page for your top service
- Rewrite your ad copy to focus on value, not price
- Set a weekly reminder to review your Search Terms Report
This quarter:
- Create landing pages for all your major services
- Build a comprehensive negative keyword list
- Test different value propositions in your ads
You don't have to do everything at once. But you do need to start. Every day you're running ads with these mistakes is another day you're handing Google money you could be keeping as profit.
Frequently Asked Questions
How much should I spend on Google Ads as a small business?
It depends on your industry and goals, but I generally recommend starting with at least $1,000-$1,500 per month. Anything less and you won't get enough data to optimize effectively. That said, I've seen businesses succeed with as little as $500/month if they're in a less competitive market and have their targeting dialed in perfectly.
The better question is: what's a customer worth to you? If your average customer is worth $2,000 and you can get customers for $100 each through Google Ads, you'd want to spend as much as possible!
Should I hire someone to manage my Google Ads or do it myself?
Honest answer? If you're spending under $2,000/month, try doing it yourself first (while avoiding these five mistakes). Use the money you'd pay an agency to test and learn.
If you're spending $2,000-$5,000/month, consider hiring a freelance specialist. The right person will pay for themselves in savings and improved results.
If you're spending $5,000+/month, hire a professional agency or full-time person. At that spend level, amateur mistakes cost you thousands per month.
How long does it take to see results from Google Ads?
You should see clicks within hours of launching your first campaign. But meaningful results? Give it 4-6 weeks.
Here's why: you need time to gather data, identify what's working, and optimize. In week one, you're learning. By week four, you're improving. By week eight, you should have a profitable campaign (if Google Ads is right for your business).
If you're not seeing any positive results after 8 weeks, something's fundamentally wrong with either your strategy or your business's fit for Google Ads.
What's a good conversion rate for Google Ads?
For service businesses, I like to see 5-10% conversion rates on dedicated landing pages. If you're below 3%, something's broken (usually one of the five mistakes I mentioned).
But here's the thing: conversion rate doesn't matter as much as cost per acquisition. If you're getting a 2% conversion rate but each customer is worth $5,000 and costs you $100 to acquire, you've got a gold mine. If you're getting 15% conversion rate but each lead costs $500 and customers are only worth $300, you're losing money.
Focus on the economics, not just the percentages.
Stop Wasting Money on Google Ads That Don't Work
Look, I'm not going to tell you that fixing these five mistakes will magically make you rich overnight. Google Ads is still competitive, still complex, and still requires ongoing optimization.
But I can tell you this: every single client I've worked with who fixed these mistakes saw immediate improvement. Usually within the first two weeks.
Sarah, the plumber I told you about at the beginning? After we fixed her broad match keywords, created service-specific landing pages, set up conversion tracking, cleaned up her search terms, and shifted to value-based messaging, her results completely changed.
Three months later, she'd spent $3,800 on ads and generated 47 qualified leads. She closed 19 of them. Her average job value was $850, meaning she made $16,150 in revenue from $3,800 in ad spend.
That's a 325% return. Not bad for fixing five mistakes.
If your Google Ads aren't working, don't give up. Just stop making these mistakes.
Need help auditing your Google Ads account to find (and fix) these budget-killing mistakes? Get a free account audit from our team. We'll show you exactly where you're wasting money and how to fix it—no commitment required.
Because you didn't start your business to donate money to Google. You started it to grow. Let's make your ads actually work for you.