Published on 6/30/2025 Staff Pick

Solved: Google Ads Spend Too High, Poor Geo-Targeting Accuracy

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Hi, im looking into our google ads setup for a small local service business. We have 2 campaigns focusing on heating and plumbing but the budget seems to be getting eaten up quick. Can you please suggest ways we can reduce spend? The daily spend is roughly £22 for each campaign but its about £650/month which is too high as we arent getting enough conversions. Are there any advanced tips for local service industries? Also what other location targeting options are there? We are already using location targeting (people physically in the area) and all exact match keywords.

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Hi there,

Thanks for reaching out, I'm happy to give you some initial thoughts and guidance on your Google Ads campaigns for your heating and plumbing business. It sounds like you're on the right track with exact match keywords and location targeting, but there are a few other tweaks we can explore to really tighten things up and make sure every penny is well spent.

We'll need to look at negative keywords...

First thing I'd look at is your negative keyword list. You mentioned targeting a specific geographical area. One thing I've seen work well is adding a comprehensive list of locations outside your service area as negative keywords. Think of every town, city, and even county that you don't want to target and add them as negative keywords at the campaign level. You'd be suprised how much this helps!

Google sometimes shows ads to people just outside your target area if it thinks they're "interested" in your services, even if they are not actually in the location you want. Having those negative keywords act as a safety net, preventing your ads from showing to irrelevant traffic.

Don't just think about location either. What about terms related to DIY repairs? If you're solely focused on professional installs and repairs, add keywords like "DIY boiler repair", "how to install a boiler myself", etc., to prevent clicks from people who aren't looking to hire a professional. These are unlikely to turn into paying customers, so you're better off filtering them out.

I'd say you should use location insertion...

Another thing I've found is location insertion. Do you have location insertion set up in your ad copy? Dynamic keyword insertion is great, but for local businesses, location insertion can be a real winner. This is were you’d use Google Ads to automatically insert the user's city or town into your ad copy, again it bolsters relevance and can deter clicks from outside your service area.

For example, if someone in Bristol searches "boiler repair", your ad could read "Boiler Repair Bristol - Call Now!". It's a simple tweak, but it makes your ad far more appealing to local searchers and signals to people outside the area that your services are not for them. We've found it really effective to make the search feel more personal and relevant.

You probably should use ad scheduling...

Let's talk about ad scheduling. Are there specific times of day or days of the week when you receive the most calls and form submissions? If you notice a pattern, adjust your ad schedule to show ads more frequently during those peak times and less frequently (or not at all) during slow periods. What times are your phones manned? Are you an emergency service or more 9-5?

You can also experiment with bid adjustments based on time of day. For example, if you notice that leads from evening searches tend to be less qualified, you could decrease your bids during those hours to reduce wasted spend.

You'll need to check your match types...

I know you're using exact match keywords, which is good, but it's worth double-checking that they're truly *exact*. Google's definition of "exact match" has become a bit broader over time, and they may still show your ads for close variants or related searches.

Also, have you thought about using broad match modifier keywords and phrase match? This would allow you to see other areas and keywords that you have been missing, but only once you've got a good negative keywords list first, otherwise I'd not bother. It's an ongoing process, not a "set and forget" job so don't feel like it's a failure if you need to tweak it!

One other thought, how good is your Quality Score? A higher Quality Score can lead to lower costs and better ad positions. You can improve your Quality Score by making sure your keywords, ads, and landing page are all highly relevant to each other. Sounds obvious, but it’s something that’s easily overlooked.

Another approach is to look at your conversion tracking - you mentioned you're tracking form fills and calls, which is essential. But are you tracking *all* relevant conversions? For example, if you have a live chat feature on your website, make sure you're tracking those interactions as conversions as well. And what about the quality of these conversions?

Also, think about the user journey on your website. Is it as smooth as possible for potential customers? Is it easy for them to find the information they need and contact you? We've often seen a lift in conversion rates just from tidying up a website, making it look more professional, and making it easier to navigate. This is particularly important for mobile users, as many people will be searching for your services on their phones.

This is the main advice I have for you:

Recommendation Action
Negative Keywords Add a comprehensive list of locations outside your service area as negative keywords.
Location Insertion Use location insertion in your ad copy to dynamically insert the user's city or town.
Ad Scheduling Adjust your ad schedule to show ads more frequently during peak times and less frequently during slow periods.
Match Types Double-check that your exact match keywords are truly exact and consider using broad match modifier keywords and phrase match (with caution).

I hope this has given you a few things to think about and implement. Getting Google Ads right for a local business can be challenging, but with a bit of tweaking and optimisation, you can definitely improve your results and reduce wasted spend. It sounds like you're new to the business, don't be afraid to ask for help and don't feel overwhelmed.

If you find yourself needing more in-depth assistance, you might consider working with an experienced ads specialist, like ourselves. We've helped loads of businesses in your area improve their campaigns and get a better return on their investment. We'd be happy to offer you a free consultation to discuss your specific needs and see how we can help. Just let us know if you’re interested and we can book you in.

Regards,
Team @ Lukas Holschuh

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