How much money are businesses wasting on Google Ads? More than they realise.

Google Ads can work. For some businesses, it’s a growth engine.

But for many, it’s become something else: a monthly line item that feels like marketing… without reliably delivering results.

The problem isn’t “ads are bad”. The problem is that a lot of PPC spend is treated like a vending machine:

Put money in → get leads out. Real life isn’t that clean. The uncomfortable question most businesses avoid when they look at their PPC campaigns is the following:

How many clicks are genuine, high-intent, and actually lead to revenue? Not “How many clicks did we get?” Not “What’s the CPC?”

But:

  • How many became qualified enquiries?

  • How many became real conversations?

  • How many became customers?

  • And at what true cost per outcome?

Because “traffic” is not a KPI. It’s a raw ingredient.

Why PPC can quietly burn budgets

1) Clicks are not customers

A click can be:

  • curiosity

  • comparison shopping

  • accidental taps

  • bots and automated traffic

  • competitors

  • low-intent browsing

If you pay attention without validating intent, you’ll find a lot of noise.

2) You’re competing in an auction, not buying a fixed asset

PPC is rented attention. Costs rise as competition increases. Stop spending, and the tap turns off.

Meanwhile, many businesses neglect channels that build compounding value (trust, reputation, organic discovery).

3) Tracking often lies by omission

A campaign can “look good” in-platform but fail in reality because

  • Conversion tracking is incomplete

  • Attribution is overly optimistic

  • Leads aren’t qualified

  • Sales teams can’t contact prospects

  • “Conversions” are micro-actions, not outcomes

What to investigate this month (practical checks)

If you’re spending meaningful money on PPC, do these checks:

  1. Lead quality audit
    Pick 50 leads from the last 60–90 days.
    How many were real? How many are qualified? How many progressed?

  2. Outcome-based CPA
    Calculate the cost per

  • qualified lead

  • sales meeting

  • proposal

  • closed deal
    Not just cost per “conversion”.

  1. Search term: reality check
    Review actual search terms triggering ads.
    You may find you’re paying for irrelevant intent.

  2. Invalid/low-quality traffic signals
    Look for patterns like the following:

  • High clicks, low time on site

  • Low engagement, high bounce

  • Odd geo/time spikes

  • Repeated clicks with no downstream action
    (You don’t need paranoia — you need basic hygiene.)

  1. Landing page and intent match
    If your ad promise and landing page don’t match perfectly, you buy clicks that never convert.

The bigger point: not everything should be bought

A lot of PPC waste happens because businesses are trying to buy what they should be building:

  • Trust (PR, thought leadership, credible proof)

  • Engagement (content people actually want)

  • Authority (SEO/GEO, so you’re found organically)

  • Community (email/newsletter with permission)

  • Conversion infrastructure (better landing pages, offers, follow-up)

Ads are a tool. Not a strategy. If PPC is your primary growth engine, you’re vulnerable to rising costs, competition, algorithm changes, and shifts in tracking.

A healthier approach

Use Google Ads where it’s strongest:

  • high-intent search terms

  • clear offers

  • tight targeting

  • strong landing pages

  • measurable outcomes

And invest the rest into assets that compound: SEO/GEO content, PR, case studies, email, partnerships, and brand credibility.

Because the most efficient lead is the one you don’t have to pay for every single time.

About the Author

Steve Gardiner (exec MBA) is a senior marketing and commercial leader at Lighthouse PR, bringing global experience from Accenture, Electronic Arts, Virgin Media, Telekom, and Etisalat. Latterly, as VP Business at Etisalat, he was responsible for $1.8B in revenue.

Today, Steve applies his strategic, marketing, and growth expertise to support Lighthouse PR clients as part of the agency’s service offering.

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