Why Your Google Ads Cost So Much (And How to Fix It)

I hear this every week: "We tried Google Ads but it was too expensive." When I dig into the account, I find the same mistakes over and over. Not complicated mistakes. Basic setup problems that are burning through budget.

The frustrating part? These are fixable. Most service businesses can cut their cost per lead by 30-50% without spending a dime more. They're already paying for the traffic. They're just wasting it.

Here's what's actually going wrong and how to fix it.

The #1 Budget Killer: Bidding on Everything

The most expensive Google Ads mistake isn't a setting. It's a mindset.

Most service businesses set up campaigns like this: "We do plumbing, so let's bid on plumbing keywords." Then they target every plumbing-related search in their area.

The problem: not all searches are equal.

High-intent searches (worth paying for): - "emergency plumber near me" - "water heater repair phoenix" - "plumber 85028"

Low-intent searches (usually a waste): - "how to unclog a drain" - "average cost of plumbing repair" - "plumber salary"

That last category? People looking for DIY solutions, doing research, or looking for jobs. They're not hiring you today. But if your campaign targets broad keywords, you're paying for those clicks.

The fix: Build campaigns around intent, not just services. Separate emergency searches from research searches from informational searches. Bid aggressively on "burst pipe plumber now" and don't bid at all on "how much do plumbers charge."

Negative Keywords: The Setting Everyone Ignores

Here's a real example from a Phoenix HVAC company's search term report:

• "hvac technician jobs phoenix": $4.20 click
• "free ac repair": $3.80 click
• "hvac training programs": $2.90 click
• "diy ac repair": $2.40 click

They were spending $400/month on clicks from people who would never hire them. Not because those people were bad. They just weren't customers.

Negative keywords I add to every service business account:

``` -job -jobs -career -careers -hiring -salary -wage -free -cheap -diy -how to -youtube -training -course -school -degree -certification -[competitor names] -repair manual -parts -diagram ```

The maintenance that matters: Check your search term report weekly. Not monthly. Weekly. Every week you'll find 3-5 new irrelevant terms burning budget. Add them as negatives immediately.

One plumber I work with reduced his cost per lead from $85 to $47 in six weeks purely through negative keyword management. Same budget, same ads, same landing page. Just stopped paying for garbage clicks.

Quality Score: The Hidden Tax on Bad Campaigns

Google charges you more when your ads perform poorly. It's called Quality Score, and it's a 1-10 rating on every keyword.

Here's the math that matters:

| Quality Score | Cost Impact | |---------------|-------------| | 10 | Pay 50% less than average | | 7 | Pay average | | 5 | Pay 25% more | | 3 | Pay 67% more | | 1 | Pay 400% more |

A keyword with Quality Score 5 literally costs 25% more per click than the same keyword with Quality Score 7. Most service business accounts I audit have average Quality Scores of 4-5. They're paying a tax on every click.

What affects Quality Score:

1. . Expected CTR: How often people click your ad vs competitors
2. . Ad relevance: How closely your ad matches the search term
3. . Landing page experience: Does your page deliver what the ad promised

The fastest fixes:

• Include the keyword in your headline. Searching for "ac repair phoenix"? The ad should say "AC Repair Phoenix" not "HVAC Services."
• Send traffic to specific pages, not your homepage. Someone searching for water heater repair should land on your water heater page.
• Match the language. If people search "emergency" put "emergency" in your ad.

I've seen Quality Score improvements from 4 to 7 drop cost per click by 40% on the same keywords.

Landing Pages That Leak

You're paying $15-30 per click for a service search. That visitor lands on your website. Then what?

For most service businesses, they land on the homepage. The homepage has navigation to 8 different pages, talks about your company history, shows a stock photo of a wrench, and has the phone number in 12-point font in the footer.

That $25 click just bounced. They're now clicking on your competitor's ad.

What a converting landing page needs:

1. . Headline that matches the search: "Emergency Plumber Phoenix" not "Welcome to ABC Plumbing"
2. . Phone number visible without scrolling: Giant, tappable, top of page
3. . One clear action: Call or form. Not "explore our services"
4. . Trust signals above the fold: License number, reviews, "Serving Phoenix since 2008"
5. . No navigation menu: Remove the temptation to click away

Test this yourself: Search your main keyword. Click on the top 3 ads (yes, including yours). Which landing page makes it easiest to call in the next 10 seconds? That's winning.

I've seen landing page improvements double conversion rates. Same traffic, same spend, twice the leads.

Geographic Targeting That Costs You Money

A Chandler plumber shouldn't pay for clicks from people in Surprise. But Google's default targeting includes people "interested in" your area, not just people physically there.

The setting that matters: Location Options.

Change from "Presence or interest: People in, regularly in, or who've shown interest in your targeted locations" to "Presence: People in or regularly in your targeted locations."

That one setting can eliminate 15-20% of wasted spend for local service businesses.

Radius targeting trap: A 25-mile radius from Phoenix covers a huge area with wildly different intent. Someone in Paradise Valley has different needs (and budgets) than someone in Mesa. Consider separate campaigns for different zones, especially if your pricing varies.

Phoenix-specific tip: Exclude areas you don't want to serve. If you don't go to Apache Junction, exclude it. If Fountain Hills is outside your range, exclude it. Every click from areas you won't serve is pure waste.

The Scheduling Blind Spot

When do people search for emergency plumbers? Not 9-5 Monday through Friday.

When are your ads running? If you're using Google's default settings, probably 24/7 with equal bids.

The data from service businesses I've managed:

• Emergency searches peak 6 PM - 10 PM on weekdays
• Weekend afternoon searches convert at 2x the weekday morning rate for home services
• Monday morning has high volume but low conversion (people researching from work)

What to do:

1. . Look at your conversion data by hour and day (in Google Ads under "Day & Hour")
2. . Increase bids 20-30% during high-conversion times
3. . Decrease bids (or pause) during low-conversion times
4. . If you can't answer calls after hours, don't run ads after hours

One HVAC company I worked with was running ads 24/7 with most conversions happening between 4 PM and 8 PM. We shifted 60% of their budget to those hours. Cost per lead dropped 35%.

Ad Copy That Doesn't Differentiate

I just searched "plumber phoenix" and looked at the top 5 ads. Here's what they all say:

• "Licensed Plumber"
• "24/7 Service"
• "Free Estimates"
• "Family Owned"

Cool. So does everyone else.

Differentiation that actually works:

• Specific response time: "On Site in 60 Minutes or Less"
• Specific geography: "North Phoenix's Highest-Rated Plumber"
• Specific social proof: "4.9 Stars | 847 Reviews"
• Specific offer: "$49 Diagnostic (Waived with Repair)"

The testing reality: Most service businesses have never tested their ad copy. They wrote something once and left it. Meanwhile, you can run 3-4 different headlines simultaneously and see which gets more clicks and conversions.

I recommend testing: - Urgency-focused ("Same-Day Service") vs benefit-focused ("Fixed Right the First Time") - Price-focused ("$49 Service Call") vs trust-focused ("Licensed & Insured Since 2008") - Review-focused ("4.9 Stars") vs response-focused ("60-Minute Response")

Run each for 2-3 weeks with enough traffic to get statistical significance. The winner often outperforms by 30-40%.

The Compound Effect of Fixing All of This

None of these fixes work in isolation. But stack them:

• Better keywords = more qualified traffic
• Negative keywords = less wasted spend
• Higher Quality Score = lower cost per click
• Better landing pages = more conversions from same traffic
• Better targeting = less geographic waste
• Better scheduling = budget focused on converting hours
• Better ad copy = more clicks, better Quality Score

A typical service business account with these issues is leaking 40-60% of budget to waste. Fix them all and your cost per lead can drop dramatically, without spending another dollar.

Where to start: 1. Pull your search term report right now. Add negative keywords for obvious junk. 2. Check your location settings. Switch to "Presence only." 3. Look at your landing page. Is the phone number huge and tappable?

Those three changes take 30 minutes and will save most accounts 20-30% immediately.

Running ads but not sure what's working? [Let's audit your account](/contact). I'll tell you exactly where you're wasting money.