73% of businesses waste 40% of their Google Ads budget on hidden inefficiencies. Google Ads can be an incredible revenue driver—when used correctly. But even experienced advertisers unknowingly waste ad spend on silent budget killers lurking in their campaigns. If you’ve ever wondered, “Why am I losing money on Google Ads?” or “How do I stop wasting money on Google Ads?”, this guide is for you.
There could be many reasons for losing money in Google Ads. Let’s dive into four common mistakes that cause advertisers to bleed cash in Google Ads, plus actionable fixes to make your campaigns more profitable.
1. Accidentally Opting into the Google Partners
By default, when you create a search campaign, Google automatically opts for you to join the Google Search and Display Network (GDN). The problem? Display placements often have lower intent than search queries, leading to wasted spend on users who are just browsing rather than ready to convert.
How to Fix It
Go to your campaign settings. Under “Networks,” uncheck “Display and Search Network.”
Run separate Display campaigns if you want GDN placements, ensuring better targeting and control over spend.
Bottom Line: Keep your search and display campaigns separate to avoid wasting money on low-intent traffic.
2. Ignoring Device Performance Data
Not all devices perform equally. Some campaigns thrive on mobile, while others do better on desktop. Failing to analyze device performance can lead to unnecessary spending where conversions are weak.
How to Fix It
Go to Audience Reports > Devices in Google Ads.
Identify which device types (Mobile, Desktop, Tablet) underperform.
Adjust bids accordingly with
- Use Bid Modifiers to increase/decrease bids by device.
- Set -100% bid adjustments to exclude poor-performing devices.
- It’s time to regularly analyze and optimize device performance to maximize conversions.
3. Bidding on Low-Volume, No-Conversion Keywords
Low-volume keywords with zero conversions accumulate silent costs. Many advertisers overlook low-volume, low-conversion keywords that slowly drain their budget. These keywords don’t get flagged as major spenders, but over time, they add up.
How to Fix It
In Google Ads > Keywords, filter for:
- High spending but zero conversions
- Keywords with low impressions and clicks over 90 days
- Filter Keywords: Conversions = 0 + Cost > $50 over 90 days.
- Pause or remove these keywords to reallocate your budget to better performers.
Go for periodic audit keyword performance and eliminate silent budget drainers.
4. Not Using Negative Keywords
Google’s expanded match types mean your ads might show for irrelevant searches. Broad match lets irrelevant searches trigger ads (e.g., “free CRM” for paid software). Without negative keywords, you’re paying for clicks that will never convert.
How to Fix It
- Regularly review your Search Terms Report under Insights & Reports.
- Identify irrelevant or unqualified search terms.
- Add them as negative keywords at the ad group, campaign, or account level.
- Run N-Gram analysis to find patterns of non-converting words.
Keep refining your negative keyword list to prevent wasted spend on irrelevant searches and exclude any irrelevant traffic with brand competitors’ keywords.
3 Advanced fixes to major ad leaks
- To block fraudulent clicks try using ClickCease or Optmyzr.
- Audit Auto-Apply Recommendations because 60% of Google’s suggestions prioritize spend over ROI.
- Exclude regions in geo-targeting with high clicks but low conversions.
Losing money with Google Ads? Let’s see if we can help.
Find out if your Google Ads account is leaking money by requesting a free audit of your campaign. Contact us to request pricing or book a calendar link directly for our monthly SEM management services.
