How to Audit Your Google Ads Account for Wasted Spend
If you have been running Google Ads for a while but feel like you are spending more than you should, you are not alone. Many businesses waste hundreds or even thousands of dollars each month on clicks that never turn into leads or sales. A Google Ads audit helps identify exactly where your budget is leaking. It uncovers missed opportunities, inefficient targeting, and underperforming ads. In short, it gives you the clarity needed to make your campaigns more profitable. In this guide, we will walk step by step through how to audit your Google Ads account for wasted spend and how to take action once you find the problem areas.
Why You Should Regularly Audit Your Account
Google Ads is constantly evolving. Keyword match behavior changes, bidding algorithms update, and new features are introduced every year. Even well-structured accounts can drift off course over time. Auditing ensures your campaigns remain efficient. It helps you identify where your money is going, what is working, and what is draining your budget. According to Search Engine Journal, most advertisers can reduce wasted spend by ten to twenty percent simply by cleaning up their account structure and improving keyword targeting. An audit not only saves money but also improves performance by focusing your resources on what truly drives results.
Step 1: Review Account Structure
Your campaign and ad group organization directly affect performance. A messy account structure makes optimization difficult and data unreliable. Each campaign should serve a single goal or product line. Within each campaign, ad groups should contain a small, tightly related set of keywords. If you find ad groups with dozens of unrelated keywords, it is a sign of inefficiency. Split them into smaller, focused groups. To learn more about proper organization, read our post How to Structure a Google Ads Campaign for Maximum ROI, which explains how clear structure leads to better performance and lower costs.
Funny story: we once reviewed a client’s account and on the surface, their campaigns looked like they were crushing it. But when we dug a little deeper, we realized most of their ad spend was going toward people searching for their own business name—not new customers. So yes, the campaign looked high-performing… until we removed branded keywords from the mix. Once we did that, it became clear the rest of the campaigns were barely pulling their weight. Ironically, the client preferred the old structure—because it hid that uncomfortable truth.
Step 2: Evaluate Keyword Performance
Keywords are the foundation of your account, and they are often the first place to look for wasted spend. Sort your keywords by spend and conversion rate. Look for those that consume budget but rarely generate conversions. Pause or adjust these. Check for duplicate keywords across campaigns, which can cause internal competition and drive up cost per click. Also examine match types. Broad match keywords can capture too many irrelevant searches. Use phrase and exact match for greater control. This simple step can often cut wasted spend by a large margin. You can learn more about Keyword Match Types here.
Step 3: Analyze Search Term Reports
The search term report shows the actual queries that triggered your ads. It is one of the most valuable tools in your account. Review it regularly and identify irrelevant or low-intent searches. Add them as negative keywords to prevent your ads from showing for similar terms in the future. For example, if you are advertising paid digital marketing services but your ads appear for “free advertising tools,” that is wasted spend. Consistently maintaining your negative keyword list will keep your budget focused on searches that convert. You can read more about Negative Keywords and How to Save Your Budget here.
Step 4: Review Geographic and Demographic Data
Google Ads allows detailed targeting by location, age, and gender. Check which regions or demographics generate conversions and which do not. If certain locations are consuming budget without results, narrow your targeting or reduce bids there. Similarly, if your product appeals primarily to specific age groups, exclude demographics that do not perform. Fine-tuning this data ensures you are not paying for impressions or clicks from users outside your target audience.
Step 5: Inspect Ad Performance
Ads that fail to attract clicks or conversions can silently waste money. Review each ad’s click-through rate and conversion rate. Pause low-performing ads and test new variations. Check that each ad matches the keywords in its ad group and directs traffic to the correct landing page. Misalignment between ad copy and user intent reduces Quality Score and raises costs. Strong ad copy should clearly state what you offer, highlight benefits, and include a clear call to action.
Step 6: Check Landing Page Relevance
Even the best ads will fail if the landing page does not convert. Evaluate each landing page for clarity, speed, and mobile friendliness. The content should directly reflect the keyword and ad promise. If a user clicks on an ad for “emergency HVAC repair” and lands on a generic homepage, the chance of conversion drops significantly. At Cristanta Digital Marketing, landing page optimization is included in every paid advertising package. We use a combination of Google Analytics and heatmap software in order to gain a deeper understanding in not only overall traffic quality, but also how users are navigating the page. You can learn more about how we improve conversion rates on our Paid Advertising Services page.
Step 7: Review Conversion Tracking
Without accurate tracking, you cannot measure real success. Check that every key action—phone calls, form submissions, purchases—is properly tracked. Verify that conversion tags fire correctly on thank-you pages and that Google Analytics is linked to your Ads account. Missing or duplicate conversions can distort performance data and lead to bad optimization decisions. A complete tracking setup ensures that every dollar spent can be tied to measurable results.
Step 8: Audit Device Performance
Users behave differently on desktop, mobile, and tablet. Review your performance by device in Google Ads. If mobile clicks are high but conversions are low, your landing pages may not be fully optimized for smaller screens. In that case, consider adjusting mobile bids or redesigning pages for better usability. A balanced device strategy helps you spend efficiently and reach users where they convert best.
Step 9: Evaluate Bidding Strategies
Your bidding strategy determines how Google allocates your budget. If you are using automated bidding, such as Maximize Conversions or Target CPA, ensure you have enough conversion data to support it. Without sufficient data, automation can overspend. If you use manual bidding, review bids regularly to maintain competitiveness without overpaying. The right strategy depends on your data and goals. Testing and refining bids is a continuous process.
Step 10: Review Ad Schedule and Timing
When are your ads running? Check the performance by hour and day of the week. You might discover that clicks after 8 p.m. rarely lead to conversions. Adjust your ad schedule to focus on the most profitable times. Limiting ad display to your business hours can also improve lead quality, especially if your team answers phone calls in real time.
Step 11: Examine Quality Score
Quality Score plays a big role in both your ad rank and how much you pay per click. It’s based on three main factors: expected click-through rate (CTR), ad relevance, and landing page experience.
If you notice keywords with low Quality Scores, that’s a signal something in the chain isn’t lining up. Common reasons for low scores include:
Low expected CTR: Your ad isn’t compelling enough, doesn’t stand out from competitors, or isn’t closely aligned with what people are searching for.
Poor ad relevance: The keyword doesn’t clearly match the ad copy, or the same generic ad is being used for too many different search terms.
Weak landing page experience: The page loads slowly, isn’t mobile-friendly, lacks clear messaging, or doesn’t match the promise made in the ad.
Overloaded ad groups: Too many unrelated keywords in one ad group make it harder to write highly relevant ads.
Missing or weak keyword usage: Keywords aren’t reflected in your headlines, descriptions, or landing page content.
Poor user experience signals: High bounce rates, confusing layouts, or unclear calls to action can hurt perceived quality.
Lack of historical performance: New keywords or recently restructured campaigns may start with lower Quality Scores until Google gathers enough data.
The key is to identify why a keyword is underperforming and fix the specific issue—whether that’s rewriting ad copy, tightening ad groups, improving page speed, or aligning the landing page more closely with search intent. Improving Quality Scores doesn’t just boost visibility—it often leads to lower costs and better performance overall. For a deeper breakdown of how Quality Score impacts your campaigns, you can also reference Google Ads Help.
Step 12: Identify Budget Allocation Issues
Take a step back and look at where your ad budget is actually going. If one campaign is consistently outperforming the others, it often makes sense to shift more budget in that direction. On the flip side, campaigns that are spending money without delivering real results should be reduced—or paused altogether. Simply rebalancing your budget can improve ROI without increasing your total spend. One important thing we see all the time: some companies are already getting a positive return on their ad spend… but they choose not to increase their budget. We get it—spending more can feel risky. But here’s the truth: If you already have a positive ROI, one of the simplest and fastest ways to generate more leads is to increase your ad budget. Under these conditions, scaling spend often delivers better and quicker results than optimization alone. Optimization still matters—but it can’t always compete with the impact of putting more fuel into something that’s already working.
Step 13: Review Audience Targeting and Exclusions
Google Ads allows targeting by in-market audiences, affinity groups, and remarketing lists. Review who you are targeting and make sure your ads are reaching the right people. Exclude irrelevant audiences that are unlikely to convert. For instance, if you sell B2B software, you can exclude consumer entertainment interests that do not align with your market.
Step 14: Examine Account Settings and Automation Rules
Not all performance issues come from keywords or ads—sometimes the problem is hiding in your settings and automation. Automated rules, scripts, and smart features can be helpful, but if they’re poorly configured or left unchecked, they can quietly work against your goals. Start by reviewing all automated rules and scripts. Make sure they still align with your current objectives. For example, rules that automatically increase bids, pause keywords, or adjust budgets might be based on outdated performance thresholds or past goals that no longer apply. What once made sense can easily become a liability over time. Next, take a close look at campaign-level settings, including:
Networks: Search campaigns should usually run on Search only. Turning off Display Network placements within Search campaigns often reduces wasted impressions and low-quality clicks.
Ad rotation: Ensure ads are rotating in a way that supports testing and optimization, rather than favoring one ad prematurely.
Delivery method: Accelerated or overly aggressive delivery can burn through budgets too quickly without improving results.
Location and language settings: Broad or incorrect targeting can send traffic from areas that don’t convert.
Bid strategies: Automated bidding works best with enough clean conversion data. If tracking is off or data is limited, these strategies can underperform.
Automation should support your strategy—not replace oversight. Regularly auditing these settings helps prevent silent budget drain, improves efficiency, and ensures your account is running exactly the way you intend.
Step 15: Prepare an Action Plan
After completing your audit, summarize your findings in a clear action plan. List which campaigns, keywords, and ads need to be paused, adjusted, or optimized. Assign timelines and priorities. If you are unsure how to implement certain improvements, it may be time to bring in an expert. At Cristanta Digital Marketing, we specialize in helping businesses recover wasted ad spend through detailed audits and ongoing management. You can schedule your personalized review through our Paid Advertising Services page.
How Often You Should Audit
At a minimum, audits should be done once every quarter, and even more frequently for high-spending or fast-moving accounts. The digital landscape changes quickly—competition shifts, search behavior evolves, and what worked a few months ago may not work today. Regular checkups help ensure your campaigns stay aligned with your business goals and continue performing efficiently. It’s also important to audit any time a campaign is flopping. If performance suddenly drops, costs spike, or leads dry up, waiting until the next scheduled audit can waste budget. A timely audit can uncover issues like tracking problems, structural mistakes, budget misallocation, or changes in the market that need immediate attention. In short, audits aren’t just a routine maintenance task—they’re a troubleshooting tool. The sooner you review a struggling campaign, the faster you can identify what’s broken and get performance back on track.
Common Mistakes When Auditing
Ignoring historical performance data
Making too many changes at once
Focusing only on clicks instead of conversions
Overlooking landing page experience
Forgetting to review account-level settings
Avoiding these mistakes ensures your audit produces actionable insights rather than confusion.
Why Professional Audits Deliver Better Insights
While you can perform a basic audit on your own, professional audits uncover deeper inefficiencies. Agencies use advanced tools to analyze keyword performance, competitor activity, and conversion tracking accuracy. They also bring experience from managing multiple industries, helping you benchmark your results effectively. An experienced partner can help you not only identify wasted spend but also turn that wasted budget into profitable conversions.
Conclusion
A Google Ads audit is not about pointing out mistakes; it is about finding opportunities. By analyzing account structure, keywords, targeting, and tracking, you can quickly uncover where your money is going and where improvements can be made. Even small adjustments can lead to significant savings and better results. If you are ready to see exactly where your Google Ads budget is being wasted and how to fix it, schedule your personalized audit with Cristanta Digital Marketing today.