TLDR;
- Your Google Ads aren't failing because of bids or match types. They're failing because you don't understand your customer's real, career-threatening 'nightmare'.
- Stop guessing your budget. The key to profitable scaling is calculating your Customer Lifetime Value (LTV). Our interactive calculator inside will show you exactly how much you can afford to spend.
- The "Request a Demo" button is killing your conversions. You must offer instant, undeniable value *before* asking for a meeting.
- Targeting broad, informational keywords is a waste of money. Focus exclusively on high-intent keywords that signal a user is ready to buy, not just browse.
- This guide includes a troubleshooting flowchart to help you diagnose the real reason your campaigns are underperforming, from low CTR to high cost-per-lead.
If your Google Ads are burning cash faster than a startup with a new round of funding, I can almost guarantee it's not for the reasons you think. You've probably spent hours tweaking bids, obsessing over Quality Score, and A/B testing button colours. You've read all the blogs, followed the 'best practices', and your cost-per-click might even look decent. But the leads are rubbish, the sales aren't happening, and you're no closer to profitable growth.
Here's the uncomfortable truth: you're fixing the wrong problem. Poor Google Ads performance is almost never about the tactics. It’s a symptom of a much deeper issue with your strategy. It's a failure to understand who you're selling to, what they're actually buying, and how much they are truly worth to your business. Let's fix that.
So, why are my ads *really* failing?
Forget everything you've read about optimising for clicks. The foundational mistake most businesses make is defining their Ideal Customer Profile (ICP) with sterile, useless demographics. "Companies in the UK finance sector with 50-200 employees" tells you absolutely nothing of value. It leads to generic ads with generic messaging that get ignored by everyone.
To stop wasting money, you must redefine your customer not by who they are, but by the specific, urgent, and expensive nightmare that keeps them up at night. Your customer isn't a job title; they're in a state of professional pain, and your product or service is the aspirin.
Think about it. The Head of Sales at a tech firm isn't just a 'decision maker'. She's a leader terrified of missing her quarterly target and having to explain it to the board. For a legal tech SaaS, the nightmare isn't 'needing better document management'; it's a partner missing a critical filing deadline, exposing the firm to a million-pound malpractice suit. For B2B SaaS companies in the UK, this is the entire game. Your ICP isn't a person; it's a problem.
Once you've isolated that nightmare, your entire approach changes. You stop targeting broad industry keywords and start hunting for the digital footprints of their pain. What niche podcasts do they listen to on their commute from Canary Wharf? Which industry newsletters do they actually open? What specific software tools (like Salesforce or HubSpot) do they already pay for? This intelligence is the blueprint for your entire targeting and messaging strategy. If you haven't done this work, you have no business spending another pound on Google Ads.
Ad Copy: "Get Our Marketing Software"
Result: Ignored. Speaks to no one's urgent problem. Wasted spend.
Ad Copy: "Tired of reporting poor MQL numbers to your boss?"
Result: Clicks from people with a real, painful problem you can solve.
How much can you actually afford to pay for a click?
The second question that sinks most campaigns is "what should my budget be?". This leads to chasing low Cost Per Leads (CPLs) without any context, celebrating cheap leads that never convert, and starving the campaigns that actually produce valuable customers. This is a particularly common trap for UK startups trying to make Google Ads work without a clear financial model.
The real question isn't "How low can my CPL go?" but "How high a CPL can I afford to acquire a fantastic customer?" The answer is found in its counterpart: Customer Lifetime Value (LTV).
Before you spend another penny, you must know this number. Let's break it down.
- Average Revenue Per Account (ARPA): What do you make per customer, per month?
- Gross Margin %: What's your profit margin on that revenue? (Not revenue, *profit*).
- Monthly Churn Rate: What percentage of customers do you lose each month?
The calculation is simple: LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
Let’s run an example. Say your software costs £300/month (ARPA), your gross margin is 70%, and you lose 5% of your customers each month (Churn).
LTV = (£300 * 0.70) / 0.05
LTV = £210 / 0.05 = £4,200
In this example, each new customer is worth £4,200 in gross margin over their lifetime. This number changes everything. Suddenly, you're not just buying clicks; you're making investments. For many businesses, this is the single insight that explains why their Google Ads are not converting; they're bidding for £10 leads when their real customers are worth thousands.
Use the calculator below to find your own LTV. Don't guess. Use real data from your business.
Now that you have your LTV, you can make intelligent decisions. A healthy business model often aims for a 3:1 LTV to Customer Acquisition Cost (CAC) ratio. So, with a £4,200 LTV, you can afford to spend up to £1,400 to acquire a new customer. If your sales process converts 1 in 10 qualified leads into a paying customer, you can afford to pay up to £140 per qualified lead. See how this changes things? That £75 CPL that seemed terrifying last week now looks like a bargain. This is the maths that unlocks aggressive, intelligent growth.
Are you targeting searchers or actual buyers?
The next piece of the puzzle is keyword intent. Not all keywords are created equal. Most accounts I audit are full of broad, informational keywords that attract tyre-kickers and researchers, not buyers. You're paying for clicks from people who are months away from making a decision, if they ever do.
You need to ruthlessly prioritise keywords that signal commercial or transactional intent. These are searches made by people who have their wallets out, metaphorically speaking. This is about finding the search terms people use when their 'nightmare' has become so acute they are actively looking for a paid solution.
Let's take a hypothetical sales outreach tool:
- Informational Intent (Low Value): "how to write cold emails", "what is sales outreach". These people are learning, not buying. You might write blog posts for them, but you shouldn't be paying to put ads in front of them.
- Commercial Intent (Medium Value): "best sales outreach tools", "apollo.io alternatives", "outreach.io vs salesloft". These people are comparing solutions. They are problem-aware and solution-aware. This is a good place to be.
- Transactional Intent (High Value): "apollo.io pricing", "sign up for salesloft". These are bottom-of-the-funnel searches. They often have lower search volume but much higher conversion rates.
Your job is to build your campaigns around the commercial and transactional intent keywords. You need to become an expert in the language your customers use when they are ready to solve their problem *now*. This is especially true in competitive spaces like paid ads for Fintech, where every click is expensive and must be qualified. The impact of focusing on high-intent users can be transformative. I remember one client, a medical job matching SaaS platform, who came to us with a £100 Cost Per User Acquisition. By focusing their Google Ads and Meta Ads campaigns on only the most motivated users, we were able to reduce that cost down to just £7.
Why does your landing page get clicks but no conversions?
So you've nailed your ICP's nightmare, you know your LTV, and you're targeting high-intent keywords. The clicks are rolling in... and then, nothing. This is the most common and frustrating failure point, and it almost always comes down to one thing: your offer.
The "Request a Demo" button is quite possibly the most arrogant, high-friction, and conversion-killing Call to Action ever invented. It presumes that your prospect, a busy decision-maker, has nothing better to do than schedule a 30-minute meeting to be sold to. It offers them zero immediate value and positions you as just another commodity vendor clamouring for their time. It's no wonder so many businesses find their ads get traffic but fail to convert; the landing page is a dead end.
Your offer's only job is to deliver an "aha!" moment. It must provide a piece of undeniable value, for free, that makes the prospect sell themselves on your solution. It has to solve a small, real part of their problem right then and there.
What does this look like in practice?
- For SaaS Founders: The gold standard is a free trial or a freemium plan (no credit card required). Let them use the actual product. Let them feel the transformation from their current painful state to a better one. When the product itself proves its value, the sale becomes a formality. This is how you generate Product Qualified Leads (PQLs) who are already convinced, instead of Marketing Qualified Leads (MQLs) your sales team has to chase.
- For Service Businesses: You must bottle your expertise into a tool or asset. For a marketing agency, it might be a free, automated SEO audit that finds their top 3 keyword opportunities. For a data analytics platform, a 'Data Health Check' that flags issues in their database. For us, as an ad consultancy, it's a free 20-minute strategy session where we audit their failing campaigns. You must solve a small problem for free to earn the right to solve the big one.
Ditch the demo request. Replace it with an offer of immediate value. Your conversion rate will thank you for it.
Is your ad copy speaking their language, or yours?
Finally, let's talk about the ad itself. Most ad copy is terrible. It's full of features, jargon, and self-congratulatory claims. It talks all about the company and its product, and not at all about the customer and their nightmare.
To write copy that converts, you need to use a proven framework that connects directly to the pain you identified in the first step.
For a B2B SaaS Product (Before-After-Bridge): You don't sell a "FinOps platform"; you sell relief.
- Before: Your AWS bill just landed. It’s 30% higher than last month, and your engineers have no idea why. Another fire to put out.
- After: Imagine opening your cloud bill and smiling. You see exactly where every pound is going, and waste is automatically eliminated.
- Bridge: Our platform is the bridge that gets you there. Start a free trial and find your first £1,000 in savings today.
For a High-Touch Service Business (Problem-Agitate-Solve): You don't sell "fractional CFO services"; you sell a good night's sleep.
- Problem: Are your cash flow projections just a shot in the dark?
- Agitate: Are you one bad month away from a payroll crisis while your competitors are confidently raising their next round?
- Solve: Get expert financial strategy for a fraction of a full-time hire. We build dashboards that turn uncertainty into predictable growth.
This isn't about being clever; it's about being clear. It's about showing the customer you understand their specific pain better than anyone else. When your ad copy reflects their internal monologue, the click is almost inevitable.
How do I put this all together? A troubleshooting framework
It's easy to get lost in the data. Here’s a simple flowchart to diagnose your campaigns based on the principles we've discussed. Start at the top and work your way down. Dont jump to conclusions, follow the process.
Fix: Rewrite ads using Problem-Agitate-Solve / Before-After-Bridge.
Fix: Create a value-first offer (free trial, tool, audit).
Fix: Ensure page headline mirrors the ad's promise.
Fix: Calculate your LTV. Your affordable CAC might be higher than you think.
Fix: Pause broad keywords. Focus budget on commercial/transactional terms.
So, what's the plan?
Troubleshooting Google Ads isn't about finding a secret button to push. It's about stepping back and fixing the broken strategy that underpins the entire effort. It requires honesty about who your customer is, what they value, and what they're worth to you. Stop tweaking and start rebuilding from a foundation of customer insight and solid maths. It's not the easy way, but it's the only way that actually works.
I've detailed my main recommendations for you below:
| Step | Action | Why It Matters |
|---|---|---|
| 1. Define the Nightmare | Interview your best customers. Identify the single, urgent, expensive problem you solve for them. Ditch demographics. | This is the foundation for all your messaging and targeting. Without it, your ads will be generic and ineffective. |
| 2. Calculate Your LTV | Use the calculator in this guide. Input your ARPA, Gross Margin, and Churn Rate to find your true Customer Lifetime Value. | This tells you exactly how much you can afford to spend to acquire a customer, turning bidding from guesswork into a strategic investment. |
| 3. Hunt for Intent | Audit your keywords. Pause anything with purely informational intent. Focus all budget on commercial and transactional keywords. | You stop paying for clicks from researchers and start paying only for clicks from potential buyers, drastically improving lead quality. |
| 4. Fix Your Offer | Delete the "Request a Demo" button. Replace it with a high-value, low-friction offer like a free trial, a useful tool, or an automated audit. | This gives the prospect an immediate "aha!" moment, proving your value upfront and dramatically increasing your landing page conversion rate. |
| 5. Rewrite Your Ads | Use the 'Before-After-Bridge' or 'Problem-Agitate-Solve' frameworks to write ad copy that speaks directly to your customer's nightmare. | This makes your ad resonate on an emotional level, ensures it stands out from the competition, and drives higher-quality, more motivated clicks. |
Implementing this framework takes work, discipline, and a willingness to challenge your own assumptions. It requires you to operate less like a campaign manager and more like a business strategist. If that feels daunting, or if you simply don't have the time to dismantle and rebuild your strategy from the ground up, it might be time to bring in an expert.
We specialise in this exact process. We help businesses uncover the strategic flaws that are holding their paid advertising back and implement systems that drive predictable, profitable growth. If you'd like an expert pair of eyes on your campaigns, consider booking a free, no-obligation strategy session with us. We'll audit your current setup and give you a clear, actionable plan to fix what's broken.