Strategy

Top 10 Google Ads Mistakes Small Businesses Make

Learn the most common pitfalls that waste ad spend—and how to avoid them for better performance.

By Casaccio Media8 min read

Running Google Ads can be one of the fastest ways to grow your business—but only when your campaigns are structured correctly. Small mistakes compound quickly, draining budgets without producing meaningful leads or sales.

After managing campaigns across dozens of industries—from restaurants and salons to e-commerce, home services, and hospitality—we've seen the same errors made over and over again.

Here are the Top 10 Google Ads Mistakes Small Businesses Make and how you can avoid them.

1Using the Wrong Campaign Type

Many businesses launch with the default "Smart" or "Performance Max" campaign without understanding what they do. These automated formats can work, but they need:

  • Proper tracking
  • Strong creative assets
  • Clean audience signals
  • Accurate conversion goals

Without these, Google ends up optimizing for the wrong outcome—usually clicks, not conversions.

Better approach:

Start with Search campaigns built around intent-based keywords. Add PMax only after tracking and assets are dialed in.

2Targeting Keywords That Are Too Broad

Keywords like "marketing," "restaurants," or "lawyer" are guaranteed budget-burners.

Broad terms attract:

  • Unqualified users
  • High cost-per-click
  • Low-quality leads

Better approach:

Focus on high-intent, specific searches:

  • "Italian restaurant private dining"
  • "roof repair near me"
  • "Google Ads agency for e-commerce"

Tighter intent = lower costs + better results.

3Not Using Negative Keywords

This is a silent killer. Without negatives, Google will match your ads to irrelevant searches like:

  • "free"
  • "jobs"
  • "DIY"
  • "reviews"
  • "how to do it yourself"

These clicks never convert—but they still cost you.

Better approach:

Add a negative keyword list at launch and update it weekly.

At Casaccio Media, we review search terms every week for all clients to prevent budget leaks.

4Sending All Traffic to the Homepage

This is one of the biggest mistakes small businesses make.

Your homepage is not built to convert paid traffic. It's cluttered, unfocused, and full of distractions.

Better approach:

Build custom landing pages that match the keyword intent.

If someone searches "wash and fold laundry service," send them to:

  • Pricing
  • Benefits
  • Hours
  • CTA to book now

Never to the homepage.

5Not Tracking Conversions Properly

Without accurate tracking:

  • Google has no idea what a conversion looks like
  • You can't optimize bids or ads
  • Your decisions are guesses

Many small businesses rely only on form submissions, ignoring:

  • Phone calls
  • Direction requests
  • Add-to-carts
  • Lead form extensions
  • Booking system events

Better approach:

Install GA4, Tag Manager, and call tracking (CallRail or at minimum Google's native call reporting).

Casaccio Media builds full tracking systems so every conversion is accounted for.

6Using Only Broad Match

Broad match can work—but only with strong conversion data and a fully optimized account.

For beginners, it often leads to wasted spend.

Better approach:

Start with:

  • Phrase match for control
  • Exact match for precision
  • Test broad match later once Google understands your audience

7Ignoring Ad Extensions

Ad extensions improve:

  • CTR
  • Quality Score
  • Ad rank
  • Click volume
  • Conversion rates

Yet many small businesses forget to set them up.

Use these at minimum:

  • Sitelinks
  • Callouts
  • Structured snippets
  • Call extensions
  • Location extensions
  • Pricing or promotion extensions if applicable

Extensions cost nothing and increase visibility.

8"Set It and Forget It" Campaign Management

Google Ads is not a crockpot.

Small business owners often launch a campaign and then don't touch it for months. Google will gladly keep spending your money—even if results drop.

Better approach:

Optimization should happen weekly:

  • Add negative keywords
  • Test new ads
  • Adjust bids
  • Improve landing pages
  • Update extensions
  • Review search terms

Weekly reporting and optimization are part of every Casaccio Media plan.

9Using Only One Ad Per Ad Group

One ad = no data to compare.

Google favors advertisers who provide variety.

Better approach:

Use 3–5 ads per ad group:

  • 2 Responsive Search Ads
  • 1–3 variations focusing on different angles

This gives Google the ability to learn what messaging converts best.

10Ignoring the Landing Page Experience

You can have the best keywords and ads in the world—but if the landing page loads slowly or doesn't match the user's intent, your results will tank.

Common issues include:

  • Slow mobile performance
  • No clear CTA
  • Walls of text
  • No trust signals
  • No proof of quality
  • No offer or incentive

Better approach:

Your landing page should be:

  • Fast
  • Mobile-first
  • Clear
  • Benefit-driven
  • Keyword-aligned
  • Loaded with social proof

At Casaccio Media, we often rebuild a client's landing pages as part of campaign optimization—and results improve immediately.

Final Thoughts

Most small businesses waste 30–60% of their Google Ads budget due to avoidable mistakes. The good news? When your campaigns are structured properly, Google Ads becomes one of the most predictable, scalable growth channels available.

If you need help fixing or improving your current Google Ads performance, we'd love to take a look.

Get a Free Google Ads Performance Audit

Casaccio Media will analyze your account and send you a short video covering:

  • What's working
  • What's wasting money
  • Which metrics actually matter
  • How to improve your ROI immediately