Google Ads is one of those tools that looks deceptively simple. You toss in a few keywords, pick a radius around your shop, write something vaguely persuasive, and boom, customers, right? Not quite. For local businesses, the difference between “running ads” and “running ads that work” is like the difference between owning a hammer and knowing how to build a house. Same tool; wildly different results.
Let’s talk about the most common missteps local businesses make with Google Ads, and how to fix them without losing your mind, or your budget.
Location targeting: more than just a map pin
A lot of businesses think setting a five-mile radius around their store is enough. It’s not. Google gives you more nuanced options, like targeting people who are physically in your area or people who are just interested in it. That second group might include someone 400 miles away planning a trip, which could be useful, or totally irrelevant, depending on what you sell.
If you’ve got a brick-and-mortar location and you want actual foot traffic, stick with “Presence: People in or regularly in your targeted locations.” It’s buried in the settings, but it makes a big difference.
Broad match keywords: the budget drain you didn’t see coming
“Pasta” sounds like a reasonable keyword for an Italian restaurant. But then your ad shows up for “how to make pasta at home,” and suddenly you’re paying for clicks from people looking for recipes, not ravioli. That’s broad match in action.
Instead, use phrase match or exact match keywords. They give you more control and keep your ads from wandering into weird territory. Also, peek at the Search Terms Report regularly. It’s where you’ll catch those “why did we show up for that?” moments before they eat your budget.
Ad extensions: the free real estate you’re not using
Ad extensions are like the bonus fries at the bottom of the bag. They don’t cost extra, and they make everything better. Location extensions, callouts, structured snippets—they all give your ad more room to breathe and more reasons for someone to click.
Location extensions especially matter for local businesses. They show your address and a map pin, which is basically a neon sign saying “We’re nearby.” Use them. Use them all.
Conversion tracking: guessing with money isn’t a strategy
If you’re not tracking what happens after someone clicks your ad, you’re guessing. And guessing with money is a hobby, not a business model. Whether it’s calls, contact forms, or people asking for directions, you need to know what’s working.
Set up conversion tracking through Google Tag Manager or directly in Google Ads. Yes, it takes a little setup time. But once it’s running, you’ll know which clicks turn into customers, and which ones are just noise.
Negative keywords: your quiet budget savers
Here’s a fun one. A local plumber shows up for “plumbing jobs near me” and gets flooded with resumes instead of repair calls. Why? No negative keywords.
Negative keywords tell Google what you don’t want. Think of them as a polite “no thanks” to irrelevant searches. Build a list, update it often, and don’t be shy about excluding stuff that doesn’t
convert.
Local Services Ads: the top spot you’re probably ignoring
Local Services Ads (LSAs) sit above regular Google Ads and work on a pay-per-lead model. That means you’re paying for actual leads, not just clicks. Plus, they come with a shiny Google Guarantee badge that builds trust fast.
If you’re a service-based business and LSAs are available in your area, get in there. It’s not a replacement for regular ads, but it’s a strong complement, especially for high-intent local searches.
Your ad copy sounds like everyone else’s
“We’re the best in town!” Great. So is everyone else, apparently. Generic ad copy doesn’t grab attention, and it definitely doesn’t convert. Local businesses often miss the chance to sound, well, local.
Mention your neighborhood. Reference the coffee shop across the street or the fact that you’ve been there for 20 years. Hyper-local details make your ad feel real. And real wins clicks.
Smart Bidding isn’t magic, especially when you’re short on data
Google’s Smart Bidding tools like Target CPA or Maximize
Conversions sound great. But they rely on data to work properly. If you’ve only got a handful of conversions, Smart Bidding can get twitchy, like a GPS that keeps recalculating.
Start with manual CPC or Enhanced CPC. Once you’ve got at least 30 conversions in a 30-day window, then consider switching to Smart Bidding. Until then, keep a steady hand on the wheel.
Mobile optimization: still not optional
Most local searches happen on phones. If your landing page takes forever to load or your ad isn’t mobile-friendly, you’re basically waving customers away. People won’t wait. They’ll just tap the next result.
Make sure your ads are mobile-preferred, your site loads in under three seconds, and your call-to-action is thumb-friendly. A
click-to-call button isn’t a luxury. It’s a lifeline. Here’s why.
Google Ads isn’t a crockpot. You can’t just set it and forget it
This one’s the heartbreaker. So many local businesses launch a campaign, then never touch it again. No updates, no reviews, no testing. That’s how you end up paying $6 a click for someone who bounces in five seconds.
Check your campaigns weekly. Test new ad copy. Adjust bids. Update keywords. Use Google Ads Editor if you want to make bulk changes without losing your mind. The point is, stay involved. Google Ads rewards attention.
So yes, Google Ads can work wonders for local businesses. But only if you treat it like a living system, not a vending machine. Get the settings right, track what matters, and talk like a human. Better results start with better habits.
That’s one more tool in the belt.
We’ll be back soon with more you can use.
Until then, keep building.
– Perfect Sites Blog