Remedy.

THE JOURNAL · 2026-06-15 · 6 min read

Why your Google Ads account is bleeding 40% of its budget

Open the search terms report of almost any unmanaged Google Ads account and you'll find the same thing: a long tail of queries that have nothing to do with what the business sells, quietly eating 40 to 60% of the budget. Not because Google is broken. Because nobody is watching.

Here are the four leaks that account for most of it.

1. Search terms nobody reviewed

Your keywords are not your search terms. A plumber bidding on "water heater repair" can end up paying for clicks on "water heater repair yourself," a searcher who will never call. The fix is boring and it works: review the search terms report weekly, and add negatives ruthlessly. An account with fewer than a hundred negative keywords has almost certainly never been maintained.

2. Conversion tracking that counts the wrong things

If "conversions" in your account includes page views, button clicks, or time-on-site, your bidding algorithm is optimizing toward those, not toward customers. Google's smart bidding is genuinely good, but it does exactly what you tell it. Tell it a page view is valuable, and it will find you the lowest-cost page views on earth.

3. Location settings on the default

The default location setting shows ads to people who have shown interest in your area, not people in it. For a local business, that means paying for clicks from other states and countries. One dropdown ("presence only") fixes it. Most accounts never touch that dropdown.

4. The landing page that undoes it all

This is the leak nobody audits, because it lives outside the ads account. A perfect click at a fair price still converts at zero if the page it lands on is slow, generic, or doesn't repeat the promise of the ad. The ad and the page are one system. That's why running the ads without touching the page is only half a job.

Finding your number

Every one of these is checkable in an afternoon: search terms report, conversion settings, location settings, and one honest click on your own ad. Or the free audit does it for you, with an exact number for what your account is leaking.

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