Smarter Bidding: How to Stop Google Overspending on the Wrong Clicks
Introduction
Bidding is where strategy meets spend.
Left unchecked, Google’s algorithm will happily overpay for clicks. Without guardrails, accounts suffer from runaway CPCs, margin-blind strategies, and default approaches that quietly drain profit.
The fix is not complicated. It starts with asking the right questions.
3 Common Bidding Leaks in Google Ads
1. Runaway CPCs
Do we cap CPCs, or can Google bid without limits?
In many audits, we see keywords costing five to ten times the account average. Without controls, Google chases conversions at any cost.
2. Margin-blind bidding
Are bids aligned with margin and stock levels, or does Google optimise only for revenue?
If margin is not included in bidding decisions, spend flows toward products that look good in reports but hurt the bottom line.
3. Untested strategies
When was the last time bidding approaches were tested?
Many retailers stick with defaults like target ROAS or Max Conversions for years without structured experiments, even as performance changes.
Case in Point: The £8 Clicks
One retailer had an average CPC of £1.09.
A closer look revealed individual clicks costing over £8. With no caps in place, Google was chasing conversions regardless of margin.
After introducing CPC guardrails and aligning bids with profit per click, wasted spend dropped immediately. Reported ROAS dipped slightly, but contribution profit rose, proving that controls protect margin.
The Founder’s Checklist: Bidding
Do we have CPC caps in place?
Are bids aligned with margin and stock levels, not just revenue?
Have we tested alternative bidding strategies in the last six months?
Do we review high-CPC outliers regularly?
Is our bidding strategy designed to grow profit, not just conversions?
Closing Note
Smart bidding is about balance.
Guardrails ensure every pound spent has a clear path to profit, rather than chasing volume at any cost.
