Introduction

Running Google Ads for a local service business should deliver steady leads — but most campaigns leak money long before they generate real results. After auditing hundreds of accounts, we’ve found the same mistakes hurting contractors, home service providers, and local businesses across the board.

In this guide, you’ll learn the 10 most common Google Ads mistakes local service businesses make — and more importantly, how to fix them so you can lower your cost per lead, increase job bookings, and stop wasting budget.

1. Targeting the Wrong Keywords (Or Keywords That Are Too Broad)

Many businesses target broad, high-intent-sounding keywords like “plumber,” “handyman,” or “electrician.” The problem? They trigger tons of searches — but not necessarily people ready to hire.

The Fix:

• Use service + intent keywords (e.g., “emergency plumber near me,” “tv mounting service”).

• Add exact match keywords for tighter control.

• Continuously review your search terms and remove irrelevant traffic.

2. Not Using a Single-Themed Ad Group (STAG) Structure

Most accounts lump dozens of unrelated keywords into one ad group. This tanks ad relevance, lowers Quality Score, and raises costs.

The Fix:

• Build STAGs: 1 theme = 1 ad group.

• Tailor ad copy and landing pages to each specific theme.

This structure consistently improves CTR, lowers CPCs, and boosts conversion rates.

3. Not Using Negative Keywords

This is one of the biggest money drains. Without negatives, your ads show for searches like “DIY,” “jobs,” “free,” or competitor brand names you don’t want.

The Fix:

• Create a robust negative keyword list (DIY, how-to, cheap, jobs, salary, free, tools, stores, etc.).

• Add new negatives weekly based on Search Terms.

4. Sending Traffic to the Homepage Instead of a Landing Page

Homepages are built for browsing — not converting. Local service businesses lose countless leads this way.

The Fix:
Use a dedicated, high-converting landing page with:

• Clear headline stating the service

• Local trust signals (reviews, logos, before/after)

• A simple booking form or click-to-call button

• Strong call to action

• Service area coverage

5. Ignoring Mobile Experience

Most local searches happen on mobile, yet many landing pages load slowly or are hard to navigate on phones.

The Fix:

• Ensure pages load in under 2.5 seconds.

• Make phone number a sticky button.

• Keep forms simple: name, phone, service type.

6. Using Only One Ad Per Ad Group

Google Ads performs best when it has options to optimize from. Accounts with a single RSA (responsive search ad) often see poor performance.

The Fix:

• Use 3 RSAs per ad group, each with unique angles.

• Pin only when necessary — let Google test variations.

7. Not Tracking Conversions Properly

If you’re not tracking calls, form submissions, or bookings, you’re optimizing blind. Many businesses rely on “landing page views” instead of real actions.

The Fix:

• Install Google Tag Manager.

• Track phone calls, form submissions, texts, and bookings.

• Import offline conversions when possible.

This ensures you only pay for what actually brings revenue.

8. Running Ads 24/7 (Even When You Can’t Answer the Phone)

If you don’t have someone answering calls after hours, you may be wasting budget.

The Fix:

• Check performance by hour and adjust your ad schedule.

• Run ads heavily during peak calling times.

• Use call-only ads during business hours.

9. Relying on “Maximize Clicks” or Bad Smart Bidding Strategies

Many accounts use automated bidding before collecting enough conversion data — leading to low-quality clicks.

The Fix:

• Start with Manual CPC or Maximize Conversions after at least 15–30 conversions.

• Slowly transition to Target CPA or Target ROAS.

10. Not Reviewing Search Terms Frequently

Even well-structured campaigns need optimization. Search behavior changes constantly.

The Fix:

• Review Search Terms weekly.

• Add negatives to block bad traffic.

• Add new converting search terms to exact match ad groups.

Bonus: Not Hiring an Expert When the Account Is Losing Money

Local service businesses run into trouble because Google Ads is deceptive — it looks easy, but optimizing for profitability is extremely technical.

If your campaigns are underperforming, it’s not your fault.

Most local businesses simply don’t have time to:

• Monitor search terms

• Build STAGs

• Write high-performing RSAs

• Manage landing page testing

• Track conversions

• Optimize bidding strategies

That’s where expert help pays for itself — fast.

Get a Free Google Ads Audit (Limited Spots Available)

If you’d like a professional to check your account, identify money leaks, and show you exactly where you can get more leads for less money…

Schedule your free Google Ads audit below.

No pressure. No obligation. Just actionable insights.

This audit can reveal:

• Wasted spend you can eliminate immediately

• Opportunities to reduce CPCs

• Missing conversions you should be tracking

• STAG structures you can use

• Landing page improvements

• Keyword gaps your competitors are dominating