Top 5 Common Mistakes Small Businesses Make with Google Ads (and How to Fix Them)

Google Ads can be a powerful tool for small businesses to reach new customers, drive traffic, and increase sales. However, many small business owners find themselves frustrated with their Google Ads campaigns, often due to common mistakes that lead to wasted budget and poor results. If you’re not seeing the return on ad spend (ROAS) that you hoped for, it could be because of one or more of these errors.

In this blog, we’ll break down the top 5 common mistakes small businesses make with Google Ads and show you how to fix them, so you can maximize your ad spend and get better results from your campaigns.

1. Poor Keyword Targeting

Keyword targeting is at the heart of any Google Ads campaign. It’s how you tell Google what searches should trigger your ads. However, poor keyword targeting is one of the most common mistakes small businesses make. There are two major issues that often come up: using keywords that are too broad and using keywords that are too narrow.

Using Keywords That Are Too Broad

If your keywords are too broad, you’re going to attract a lot of traffic, but much of it will be irrelevant. For example, let’s say you own a small coffee shop in New Jersey, and you’re bidding on the keyword “coffee.” While this might seem like a logical choice, it’s way too broad. You’ll get clicks from people who are looking for information about coffee beans, coffee makers, or even coffee shops on the other side of the country. That means wasted clicks and wasted budget.

Solution:

The key is to find a balance between broad keywords that drive too much irrelevant traffic and long-tail keywords that might be too specific. Start by using tools like Google Keyword Planner to find keywords that are relevant to your business and have a healthy search volume. Aim for long-tail keywords (phrases that are 3-4 words long) that indicate purchase intent, like “buy coffee beans in New Jersey” or “best coffee shop in Hoboken.”

Using Keywords That Are Too Narrow

On the flip side, some businesses go too narrow with their keywords. This often happens when companies are trying to be ultra-specific to avoid irrelevant traffic, but they end up limiting their reach so much that their ads barely show.

For example, targeting a keyword like “handcrafted organic small-batch coffee beans in Montclair, NJ” is very specific, but there might only be a handful of people searching for that exact phrase. While it’s good to be specific, you don’t want to narrow your reach to the point where you’re not getting enough impressions or clicks.

Solution:

Use a mix of short and long-tail keywords to cast a wider net while still targeting the right audience. You can also use Google’s match types (Broad Match, Phrase Match, Exact Match) to control how wide or narrow your targeting is. Broad Match gives you the widest reach, while Exact Match limits your ads to searches that match your keyword exactly.

Real-Life Example:

A local HVAC company was initially targeting the broad term “HVAC services,” which led to a lot of irrelevant traffic from users looking for information on how to repair their own HVAC systems. By shifting to more specific terms like “emergency HVAC repair in [City]” and “AC installation in [City],” they were able to increase their qualified leads by 50% while reducing wasted ad spend by 30%.

2. Weak Ad Copy

Your ad copy is your first impression with potential customers, and weak copy is a common mistake that can lead to low click-through rates (CTR) and poor performance. Many small businesses create ad copy that is vague, generic, or fails to communicate a clear benefit to the customer. Even with the right keywords, if your ad doesn’t capture attention, you’re going to struggle.

Crafting Ad Copy That Speaks to the Customer

Your ad copy needs to be clear, concise, and compelling. This means focusing on the benefits of your product or service and addressing your customer’s pain points. Many businesses make the mistake of simply listing features instead of focusing on what the customer stands to gain.

Solution:

When writing ad copy, think about your ideal customer and what they’re looking for. Use language that speaks to their needs and include a strong call to action (CTA). Instead of saying “We offer home cleaning services,” say “Get your home sparkling clean today with our affordable, professional cleaning services.” Focus on the result that the customer wants.

Adding Urgency and Specificity

Another common mistake is failing to include a sense of urgency or specificity in your ad copy. Ads that are vague or passive don’t compel users to click. You want your ad to create a sense of “I need to do this now.”

Solution:

Use numbers and time-sensitive language in your ad copy to create urgency. For example, instead of saying “Our product is on sale,” say “Save 20% today, offer ends soon!” Numbers and deadlines make your ad stand out and give users a reason to take immediate action.

Real-Life Example:

A small e-commerce business saw their CTR double after changing their ad copy from “Shop our women’s clothing” to “Shop summer dresses: 20% off, ends this weekend!” The new ad provided a specific product and a time-sensitive offer, which encouraged users to click and take action.

Learn more about call-to-actions from Alex Hormozi by clicking here.

3. Not Utilizing Negative Keywords

Negative keywords are an essential part of any successful Google Ads campaign, yet many small businesses either don’t use them or underutilize them. Negative keywords tell Google which searches you don’t want your ad to show up for. Without them, your ad might appear in irrelevant searches, leading to wasted clicks and budget.

The Importance of Negative Keywords

Let’s say you run an upscale restaurant in New Jersey, and you’re bidding on the keyword “restaurant in New Jersey.” Without negative keywords, your ad could show up for searches like “cheap restaurants in New Jersey” or “fast food restaurants in New Jersey.” Since these users are looking for something different from what you offer, they’re unlikely to convert, and their clicks will just waste your ad budget.

Solution:

Regularly review your search terms report and identify any irrelevant queries that triggered your ads. Add these as negative keywords to prevent them from happening again. Negative keywords are especially useful for filtering out traffic that’s looking for free or discounted products when you’re offering premium services.

Real-Life Example:

A luxury landscaping company was receiving traffic from users searching for “cheap landscaping services” and “DIY landscaping tips.” By adding “cheap” and “DIY” as negative keywords, they reduced irrelevant traffic by 25% and increased conversions by focusing on users looking for high-end landscaping services.

4. Ignoring Google Ad Extensions

Ad extensions are often underutilized by small businesses, but they’re a simple way to enhance your ad’s visibility and performance. Ad extensions give users more information about your business and provide additional ways for them to engage with your ad. When used correctly, they can significantly improve your ad’s click-through rate.

Types of Ad Extensions

There are several types of ad extensions you can use, and each serves a different purpose:

• Sitelink Extensions: These allow you to promote specific pages on your website, such as product categories or special offers.

• Call Extensions: These allow users to call your business directly from the ad.

• Location Extensions: These show your business’s address, helping drive foot traffic to your physical location.
  

Solution:

Make use of all relevant ad extensions to improve your ad’s performance. Sitelink extensions are particularly useful for driving traffic to specific landing pages, while call extensions can make it easy for potential customers to get in touch with you directly. Location extensions are perfect for businesses with a physical storefront or service area.

Real-Life Example:

A local fitness studio saw a 35% increase in conversions after adding call extensions and sitelink extensions to their Google Ads. The call extension made it easy for users to contact the studio directly from the ad, while the sitelink extension drove traffic to their class schedule page, which encouraged more sign-ups.

5. Not Monitoring and Adjusting Campaigns (but give it time)

One of the most costly mistakes small businesses make with Google Ads is setting up their campaigns and then leaving them on autopilot. Google Ads campaigns need to be monitored and optimized regularly to ensure they’re performing at their best.

The Importance of Monitoring Performance

Even a well-structured campaign can go off track if you’re not keeping an eye on your performance metrics. Click-through rates, conversion rates, and cost per conversion can all fluctuate over time, and without regular monitoring, you could end up wasting your ad spend on underperforming keywords or ads. However, it is super important to let Google learn your bidding strategy, target audience, and which headlines and other copy perform the best. So, it is truly all in a balancing act. You want to monitor and adjust, but don't change things everyday, Google will never learn and optimize that way.

Solution:

Make a habit of checking your campaign performance at least once a week. Look for trends in your data, such as which keywords are driving the most conversions and which ones are underperforming. Use this information to make adjustments, like increasing bids on high-performing keywords or pausing ads that aren’t getting results.

Real-Life Example:

A small retail business was running Google Ads but wasn’t seeing the return they expected. After several months of lackluster results, they started actively monitoring their campaigns and making adjustments. They tested new ad copy, added negative keywords, and increased bids on high-performing keywords. Within three months, their cost per conversion dropped by 20%, and their ROAS improved significantly.

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Conclusion

Google Ads offers tremendous potential for small businesses, but it’s easy to fall into common traps that can hurt your performance. By avoiding these mistakes—poor keyword targeting, weak ad copy, not using negative keywords, ignoring ad extensions, and neglecting to monitor your campaigns—you can create campaigns that are far more effective and deliver a higher return on your ad spend.

The key to success is to continually optimize, test, and adjust your campaigns based on performance data. With careful management, Google Ads can become one of the most powerful tools in your small business marketing arsenal.

If you're ready to supercharge your Google Ads campaign or need help getting started, reach out for a free SEO and ad strategy consultation. Let’s make your ads work harder for your business!

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