5 Ways Google Ads Fail for Small Business & How To Make It Work

December 18, 2024

Google ads fail for small businesses when: 

  • Conversions are not tracked, and keywords that drive results are not measured 
  • The campaign has a bad or improper structure 
  • The landing page is poorly designed or doesn't match the ad 
  • The keywords used in campaigns are too broad or irrelevant 
  • You just "set and forget" campaigns and don't regularly monitor them 
  • Google ads fail when conversions are not tracked because you wouldn't know which keywords/ads are driving results. Bad landing pages lead to low conversion rates. Improper campaign structure limit optimization. Using broad keywords can waste your budget on unqualified leads. Not using negative keywords brings irrelevant traffic. Not optimizing campaigns leads to wasted spend and missed opportunities. 

    For Google Ads to work, small business owners should bid on keywords relevant to their industry. This ensures that their ads are shown to potential customers searching for their products/services. The advertiser should know how to choose the right keywords for their campaigns. They should focus on specific, long-tail keywords relevant to their niche. Advertisers should also use negative keywords to exclude irrelevant searches. 

    I used Google ads in the past. Although I got instant traffic from it, I realized it was just short-term. I explored other business models and found one that leverages organic traffic, and realized that it's more sustainable. This article explores the five ways Google ads fail for small businesses. I'll also explain how to make it work. Whether you're a small biz owner or an advertiser, this article will help you avoid common Google ad mistakes so you can focus on the ones that work. 

    1. Google Ads Fail When Conversions Are Not Tracked 

    Without conversion tracking, businesses waste up to 76% of their ad budget on ineffective keywords. Businesses that don't track might duplicate conversions. They could overestimate the result of the campaign by as much as 50%. 

    You do not know which campaigns are driving sales, leads, and sign-ups of you don't track conversions. For example, a local plumbing company running ads, but doesn't track conversions can't tell if their ads are getting calls from customers.

    If you don't track conversions:  

    • You'll waste money on underperforming ads and keywords
    • Automated bidding strategies like Target CPA or ROAS can't function effectively
    • You'll track the wrong events as conversions or count duplicate conversions
    • You'll miss opportunities for continuous improvement
    • You can't calculate the return on investment of your advertising efforts

    2. Google Ads Fail When You're Using Bad or Improper Campaign Structure

    Campaigns with overly broad structures have 50% lower click-through rates compared to well-organized ones. A poorly structured Google campaign leads to wasted ad spend and suboptimal performance. Poorly structured campaigns waste up to 76% of ad budgets on irrelevant clicks and impressions. 

    For example, a small online clothing retailer might create a single campaign for all their products instead of separating them into logical categories like "Men's Shirts," "Women's Dresses," etc. This makes it difficult to create targeted ads and optimize bids effectively.

    Poorly structured Google ad campaigns have:

    • Fragmented ad groups that have too many unrelated keywords
    • Ads are not properly themed and have overlapping targeting goals 
    • Misuse or ignore different keyword match types
    • Don't align business goals with specific objectives
    • Include ad groups that direct traffic to poorly optimized landing pages

    This Reddit commenter said structure sets boundaries that prevent mishandled campaigns. 

    Ad groups should be separated by theme and keyword value. 

    3. Using a Poorly Designed Landing Page

    Even if your ads are getting clicks, a poorly designed landing page can kill conversions. Pages that load within 2 seconds have an average bounce rate of 9%, while pages that take 5 seconds to load have a 38% bounce rate. Your landing page is poorly designed if:  

    • It takes more than 3 seconds to load
    • Doesn't have clear CTAs 
    • Has too many elements, navigation patterns, and content
    • Doesn't have reviews, awards, client logos, or media mentions
    YouTuber Wes McDowell-cropped

    To avoid poorly designed landing pages, Wes McDowell suggests creating an impactful top section. It should clearly state the transformative benefit of your offer and describe the product or service that provides this transformation. There should also be a logical anchor to the emotional headline. Use an image of a person experiencing the benefit of your offer. Visuals make the offer feel tangible and help users connect emotionally.

    4. Using Overly Broad or Irrelevant Keywords

    Targeting overly broad keywords can quickly deplete your budget without bringing in qualified leads. Irrelevant keywords won't bring in the right audience. SEMrush reports that irrelevant search terms waste up to 76% of a company's PPC budget. 

    Overly broad keywords are general, non-specific terms that target a wide audience. It often lacks focus on a particular niche, intent, or demographic. Since they're broad, they attract a lot of competition. This makes it challenging to rank well in search engine results. 

    For example, a specialty coffee shop targeting the broad keyword "coffee" might get a lot of clicks from people looking for instant coffee or large chain cafes. This is wasting the budget on unqualified traffic.

    The ideal search volume for a keyword used in Google ad campaigns is between 100 and 1,000 monthly searches. This range is effective because: 

    • It captures a well-defined audience in your area
    • It is more cost-effective than high-volume keywords
    • Less competitive and cheaper than high-volume, generic keywords
    •  Those who search local keywords have a strong purchasing intent 

    5. "Setting and Forgetting" Campaigns Without Regular Monitoring

    Many small businesses set up campaigns and then neglecting them. However, advertisers who optimize their Google Ads accounts at least once every two weeks get 14% more conversions. Regular monitoring and optimization are essential for maintaining campaign performance. 

    For example, a small B2B software company might set up a campaign for their new product launch but fail to regularly review and adjust their bids, ad copy, and keywords based on performance data. This could cause declining performance and wasted ad spend. Monitoring ad campaigns lets you:

    • Identify underperforming areas and make data-driven optimizations 
    • Identify and fix budget leaks 
    • Measure ROI 
    • Spot sudden changes or anomalies in performance
    • Lower costs and improve your ad position 
    • Identify changes in search volume, competition, and user behavior 

    Metrics for monitoring ad campaigns

    • Click-Through Rate: Measures the percentage of people who click on your ad after seeing it.
    • Conversion Rate: Tracks the percentage of clicks that lead to a desired action. 
    • Cost Per Click (CPC): Shows the average cost for each click.
    • Impressions: The number of times your ad is displayed. 
    • Return on Ad Spend (ROAS): Measures the revenue generated per dollar spent on ads.
    • Cost Per Conversion (CPA): The amount spent to acquire a single conversion.

    How To Make Google Ads Work For Small Businesses

    • Start with search campaigns. These often provide better ROI for beginners than display or video ads. Search ads have an average conversion rate of 3.17% compared to 0.46% for display ads, according to WordStream.
    • Focus on specific, long-tail keywords. These are typically less competitive and cheaper than broader terms. Ahrefs found that long-tail keywords make up to 91.8% of all search queries. It offers a great opportunity for targeted and cost-effective advertising.
    • Use negative keywords. This lessens budget wastage on unqualified clicks by excluding irrelevant searches. WordStream reports that using negative keywords can improve CTR by up to 100%. 
    • Concentrate your ads where your target audience is. Google reports that 76% of people who search on their smartphones for something nearby visit a business within a day.
    • Set up ad scheduling. Run your ads when your target audience is most active. A WordStream study found that the highest average conversion rates occur between 9 PM and 12 AM.
    • Improve ad relevance and landing page experience to lower costs per click. According to Google, ads with higher-quality scores have better ad options.
    • Use ad extensions in your campaigns. These free additions improve your ad's visibility and click-through rate. Google reports that ad extensions can increase CTR by 10% to 15% on average.
    • Set a conservative daily budget. Start small and gradually increase as you learn what works best for you. You can start with as little as $5 per day.
    • Use conversion tracking. According to Google, advertisers who use conversion tracking get 30% better ROI.
    • Consider automated bidding strategies. Once you have enough data, you can start optimizing budget allocation. Advertisers who switch to automated bidding see an average of 20% more conversions at a similar cost per acquisition.

    Bean Heath believes Google ads can work for small businesses. Google Ads enables small businesses to compete with larger companies by allowing precise targeting, regardless of budget size. Google Ads provides detailed data on ad performance. This allows businesses to optimize their campaigns based on actual performance metrics. Even with a small budget, businesses can gather enough data to make informed decisions. They can use this to improve their campaign. 

    According to this Reddit commenter, Google ads work if managed right. It's a short-term fix before you establish credibility online. 

    This commenter argues that Google ads work in general. However, it's up to you to ensure you get traffic from it. New advertisers are prone to mis-configuring ads and campaigns. Without experience, they might waste budget on unqualified traffic. 

    Google Ads Expert Shares Strategies For Running Google Ads with Small Budget

    Google Ads expert Aaron Young shares three strategies on how to run Google ads with a limited budget. He suggests setting a budget enough to gather data. This is crucial for Google’s algorithm to work effectively. According to Aaron, the bare minimum is to aim for at least ten clicks a day. Advertisers should target at least 200 impressions daily and set the maximum to 10,000 impressions monthly. He suggests starting with one service or product, ideally the most popular one. This approach avoids spreading the budget too thin across multiple services/products. It also increases the likelihood of a successful campaign. Aaron also suggests including a clear price in the ad headline. This eliminates those who cannot or will not pay your asking price.

    How to Compete with Big Spenders in Google Ads as a Small Business? 

    • Focus on local shopping ads and emphasize the local availability of your products. This strategy attracts nearby customers looking for immediate purchases. Local shopping ads increase foot traffic and eliminate the need for shipping and delivery. 
    • Create concise, persuasive ad copies that directly address customer needs. Use extensions like call buttons and location maps to enhance relevance and engagement.
    • Optimize budget by scheduling ads during peak times. Analyze customer behavior and traffic patterns to determine the best times for ad display.

    What Google Ads Can Do to Small Businesses

    • Google Ads level the playing field between small businesses and larger competitors. However, it can be expensive, especially in highly competitive industries. The platform operates on a bidding system, so ad spend can quickly increase. Small businesses with lower budgets might be pressured to spend beyond their means for visibility. 
    • Google Ads increases the reach and visibility of the small business. But to effectively run Google ads, you need a solid understanding of keyword research, ad copywriting, bidding strategies, and analytics. Otherwise, you'll waste money on ineffective campaigns. 
    • Google Ads drive immediate traffic, but it may not be sustainable long-term. Small businesses could benefit more from organic SEO strategies because clicks do not always convert into leads or sales. It's hard to gauge ROI and conversion rates range from only 1 to 10 percent. 
    • Google Ads allows businesses to re-target past visitors. However, managing and optimizing Google Ads campaigns can be time-consuming. You need to constantly monitor and adjust your ad campaigns. 

    Google Ads Courses

    Joey Babinaeu’s 30-Day Google Ads Challenge is an online program that teaches how to be profitable with Google Ads for CPA affiliate marketing. It is hosted by Powerhouse Affiliate. The program focuses on leveraging Google Ads for affiliate marketing, creating entry-point income pages for quick traffic, and  CPA strategies. It targets beginners in affiliate marketing and online entrepreneurship.

    Google Ads Masters is a comprehensive online workshop by Oliver Pestalozzi, a former Google digital strategist. The course teaches participants how to start, manage, and optimize Google Ad campaigns. Pestalozzi has a background in multi-million dollar paid ad campaigns for Google clients. It covers essential strategies for building keyword lists, creating effective ads, and selecting optimal bidding strategies. 

    I Make $50K Monthly Passive Income Without Paying For Ads

    I make $50K monthly passive income without paying for ads through a business model called local lead generation. This biz generates organic traffic by building simple websites for local service providers. I tried paid traffic before but it's only short-term. Organic visitors are more likely to convert since they're actively looking for the products and services you offer. SEO efforts provide data on user behavior and preferences. This will help you understand your audiences better. 

    conclusion-digital-marketing

    I turned to local lead generation to achieve sustainable and long-term free traffic. Organic traffic is free once your site is ranking on Google. This method is more cost-effective long-term instead of ongoing paid advertising expenses. I've been in this business for over a decade. I'm one of Dan Klein's original students. Now, I coach over 7,000 local lead gen students with him. 

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    Ippei Kanehara
    Founder/CEO

    $52K per month providing lead generation services to small businesses

    Ippei.com is for digital hustlers, industry leaders and online business owners.

    His #1 online business recommendation in 2025, is to build your own lead generation business.

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