High costs in Google Ads: mistakes that increase your budget

Managing a business involves careful monitoring of expenses, and when you notice a high cost in Google Ads, it's normal to worry about the viability of your marketing strategy. At Sell More agency, we frequently meet entrepreneurs who see the Google platform as a source of unjustified expenses, rather than a growth engine. 

The truth is that the platform operates based on logical and predictable algorithms. Our experience, accumulated even during the time we worked directly within Google, has shown us that budgets are often wasted due to inadequate technical settings, perhaps not necessarily due to competition.

Why a high cost occurs in Google Ads and how we diagnose it

The first step in remedying the situation is to understand the mechanism behind the auctions. A high cost in Google Ads is not a punishment from the platform but a signal that the relevance of your ads is not aligned with what users are searching for or with the experience you provide on your site. Google wants to show users the best answers to their searches. If the algorithm believes your ad is not the best answer, it will charge you more to allow you to appear in results.

We at Sell More always start with a thorough technical audit. We check if the account structure allows the algorithm to learn correctly or if it blocks it. Often, the platform's default settings are optimized to spend the advertising budget, not necessarily to bring you the lowest cost per conversion. A clear understanding of how Ad Rank works is vital to stop fund leaks.

Quality Score and its direct impact on budget

The most common culprit for a high cost in Google Ads is ignoring the Quality Score. This is a score from 1 to 10 that Google assigns to each keyword in your account. This score is calculated based on three major factors: estimated click-through rate, ad relevance, and landing page experience. Mathematically speaking, the lower the score, the more you will pay for each click.

Imagine the following scenario. You and your competitor are bidding for the same keyword. The competitor has a Quality Score of 9/10, while you have 4/10. Even if you are willing to pay more, Google may favor him by offering him a much lower cost per click. Ignoring this parameter inevitably leads to cost inflation. Our team focuses on increasing relevance to reduce costs without diminishing traffic volume.

Wrong selection of keyword match types

Another fundamental mistake that generates a high cost in Google Ads is the excessive use of broad match without a solid audience strategy. When you set keywords to broad match, you allow the system to show your ad for a very wide range of searches, some of which are only vaguely related to your services.

For example, if you sell "premium tax consulting" but use broad match, you might pay for clicks coming from students searching for "definition of taxation" or "free taxation courses." These clicks will never convert into customers, but they will consume your resources. At Sell More, we prefer to start PPC campaigns with a controlled structure, using exact match or phrase match to ensure that the user's intent is commercial. Thus, we eliminate irrelevant traffic before it becomes an expense.

The importance of negative keywords in cost optimization

The lack of a robust list of negative keywords is an open invitation to a high cost in Google Ads. Negative keywords are your safety filter. They tell the algorithm exactly for which terms you do NOT want to appear. Without these filters, your budget is exposed to any curiosity of internet users that has nothing to do with your business.

In our agency practice, we build standard negative lists (such as “free”, “photos”, “forum”, “jobs”) and specific lists for the client's industry. Monitoring search terms must be a weekly activity. If you notice that you are paying for terms that do not bring you value, they must be blocked immediately. This account hygiene is essential for proper Google Ads optimization and for maintaining long-term profitability.

Automated bidding strategies and their pitfalls

Automation is the future, but incorrect use quickly leads to a high cost in Google Ads. Bidding strategies like "Maximize Conversions" or "Maximize Conversion Value" are extremely powerful, but require a historical data volume to function correctly. If you activate such a strategy on a new account, without a conversion history, the algorithm will bid chaotically in an attempt to learn what works.

During this learning phase, costs can explode. Google will test various audiences at high prices. Our recommendation, based on the experience of former Google employees on the Sell More team, is to start with manual strategies or "Maximize Clicks" with a set price limit until enough data is gathered. Only then will automation work in your favor, improving return on investment without wasting the budget during the testing phase.

Landing Page Experience and its link to cost per click

Many entrepreneurs are surprised to find that a high cost in Google Ads can be caused by their website, not the settings within the platform. Google analyzes the experience you provide to the user after they click on the ad. If the page loads slowly, is not optimized for mobile, or does not contain the information promised in the ad, you will be penalized.

The system wants satisfied users. If you send traffic to a general “Home” page instead of a dedicated page for the promoted service, the conversion rate will drop, and costs will rise. A relevant, fast, and clear landing page helps increase the Quality Score, which automatically leads to a lower cost per click. We always analyze the complete user journey, not just the ads, to ensure that the target audience has a smooth experience.

Account structure and message relevance

An unorganized account significantly contributes to a high cost in Google Ads. If you have a single campaign with one ad group in which you have thrown 50 different keywords, it's impossible to write an ad that is relevant to all those searches. Low relevance again means high costs.

The solution is granular segmentation. At Sell More, we use very tight thematic group structures. This allows us to write ads that contain exactly the keyword searched by the user. When the user sees in the ad the exact term they typed, the probability of clicking increases, the CTR (click-through rate) goes up, and costs go down. It is a method that requires more time to implement, but protects the budget in the long run.

Neglecting ad extensions

Omitting ad extensions is a subtle mistake that can lead to a high cost in Google Ads. Extensions (site, call, location) provide more screen space and more information to the user before they click. The more space your ad occupies and the more informative it is, the higher the click-through rate will be.

Google favors ads that use all available formats. A “blank” ad without extensions will perform worse and have a higher cost to maintain the same position. Adding these elements is free and is one of the simplest ways to improve campaign performance. Make sure you provide users with all the necessary details to make an informed decision.

Lack of correct conversion tracking

It may seem counterintuitive, but the lack of measuring results leads to a high cost in Google Ads. If you don't know which keywords bring sales and which just consume money, you cannot optimize. You will continue to invest in unprofitable areas of the account.

Setting up conversion tracking correctly is mandatory. You need to know not only how many people clicked, but also how many completed a form, called, or purchased. At Sell More, we use advanced tools to connect data from Google Ads with the client's CRM. Only by having a clear view of the data can we eliminate waste and focus the budget exclusively on what generates real profit.

Competitor analysis and adjusting bids

Sometimes, a high cost in Google Ads is the result of a very competitive market. If all your competitors are bidding aggressively, the market price will increase. However, you shouldn't enter a price war that you can't win.

Our strategy involves identifying opportunities that the competition ignores. It may involve “long-tail” keywords (longer and more specific phrases) that have a lower cost and a higher purchasing intent. Instead of fighting for generic and expensive terms, we focus on those niche areas where you can dominate with a reasonable budget. Flexibility and adaptability are the keys to success in a dynamic market.

Applied solutions by Sell More to reduce costs

Reducing a high cost in Google Ads requires a systematic approach and patience. There is no magic button, but there are clear procedures that we have refined over years of experience.

The key elements that we implement include:

• Restructuring campaigns for maximum relevance.

• Implementing automated scripts to monitor cost anomalies.

• Continuous A/B testing of ads to increase click-through rate.

• Consultation for improving landing pages.

Our approach is transparent. We do not hide behind complicated technical terms. We want our partners to understand where their money is going and how every leu invested works for the growth of the business.

Frequently Asked Questions (FAQ) about high costs in Google Ads

Why does the cost per click increase from month to month?

The cost can increase due to new competitors entering the market, seasonality, or a decline in your account's Quality Score. It is essential to monitor these factors constantly.

Is a small budget a cause for poor performance?

Not necessarily. A well-managed small budget can deliver better results than a large budget spent chaotically. Efficiency is more important than the gross volume of expenses.

How long does it take for costs to decrease after optimization?

Typically, the first effects are seen within 2-4 weeks. The algorithm needs time to recalibrate the new settings and reevaluate the quality of your ads.

Can I manage the account myself to reduce costs?

You can, but the risk of making technical mistakes remains. The time you invest in learning the platform could be better spent managing your business, leaving experts to handle the technical side.

Turn a high cost in Google Ads into a profitable investment

You do not have to accept the situation where a high cost in Google Ads erodes your profit. The platform is an exceptionally powerful tool if set up correctly, with solid business logic behind it. The difference between a campaign that loses money and one that scales the business lies in the technical details and the overall strategy.

At Sell More, we bring the expertise gained at the source, from inside Google, to transform your campaigns. We know how the algorithm thinks and we know how to make it work in your favor, not against you. 

Do you need a fresh and informed perspective on your account to stop the waste?