The Top 5 Reasons Google Ads Can Waste Money for SaaS

Google Ads has proven to be a powerful tool for generating valuable leads. 

However, it’s all too common to see accounts wasting precious ad dollars due to certain settings, targeting issues, and campaign types. 

In fact, some accounts end up squandering up to 30% of their monthly budget! 😮

Let’s take a closer look at the top five most common issues we often come across:

1) Broad Location Settings

Here’s a sneaky one. By default, Google sets your location targeting to “Presence and Interest,” which means people from anywhere in the world with an interest in the U.S. can see your ads. 

Not exactly ideal if you’re aiming for a U.S.-only audience.

2) Using Broad Match Types

Be cautious when selecting your match types. These determine how closely Google matches your keywords. Even “Exact Match” is no longer truly exact.

Start with Exact Match, then try Phrase match. 

Only consider using Broad match when you have an established account and a robust set of negative keywords.

3) Negative Keywords

This one is crucial. A significant amount of wasted spending ends up here. Even with Exact Match, Google might show your ads for irrelevant searches. 

Stay vigilant and regularly add negative keywords to your Negative Lists. 

It will help reduce wasted spending, improve performance, and allow you to explore broader match types.

4) Using PMAX wrong 

Proceed with caution. Unless you have an experienced account, it’s best to avoid starting with PMAX. Based on our experience, it has about a 50/50 success rate in B2B. 

We recommend utilizing PMAX only if you have a mature account, a stellar website, solid audience signals, and outstanding creative.

5) Automated Bidding

Over the years, automated bidding has improved significantly, but understanding how it works is crucial for success. 

Google typically requires around 15 conversions per campaign per month for automated conversion strategies to work effectively. 

That’s why we suggest starting with Manual CPC, gathering data, and then progressing to Max Conversion and Target CPA (for B2B campaigns).

(Bonus) Auto-Apply – 

These might seem appealing, allowing you to set and forget your settings. However, we strongly advise against using them, except for the “Upgrade your conversion tracking” feature.

Google Ads remains one of the best tools for capturing and driving qualified leads for your business. 

However, it’s essential to be mindful of the potential pitfalls that can quickly deplete your budget. 

By understanding and implementing these strategies, you can navigate the Google Ads landscape with confidence, unlocking the true potential of this powerful advertising platform and maximizing your lead generation efforts.

Michael Schroder

Michael Schroder

Michael Schroder is a Google Ads and SaaS marketing consultant. Grow your SaaS with his support today!