How We Lost $8,700 on Google Ads Before Discovering This One Targeting Mistake
A tiny setting was responsible for months of wasted spend.
Ran Google Ads for my home services business for four months, paying $60-90 per lead when it should've been $25-35. Had a freelancer managing it who kept saying "the algorithm needs time." I believed him.
By month four: $8,700 spent, maybe 40 real leads. Before killing the channel entirely, I finally audited the account myself.
Found it: location targeting was set to "Presence or Interest" instead of "Presence." That default setting shows your ads to anyone interested in your area, not just people actually there. I was paying for clicks from people across the country who'd never become customers.
Switched it to "Presence" only. Two weeks later, cost per lead dropped to $31. Spend basically got cut in half while lead quality went up.
Parted ways with the freelancer, manage it myself now. Lesson: check your location targeting manually, don't trust "it just needs time," and ask whoever runs your ads to actually show you the settings, not just performance reports.
If you're running Google Ads, go check this setting right now. Takes two minutes.
In Google Ads:
1)Go to your Campaign
2)Click Settings (left-hand menu)
3)Scroll to Locations
4)Click Location options (it's a small link/dropdown, easy to miss)
5)Under "Target," you'll see:
# Presence: People in or regularly in your targeted locations this is what you want
# Presence or interest: People in, regularly in, or who've shown interest in your targeted locations this is the default, and the problem
# Presence or interest (search) vs Search interest variations of the same issue depending on campaign type