Why is my Google Ads account not spending? 6 things it could be

Launching a Google Ads campaign is an exciting step toward growing your business, but it can be frustrating when your account doesn’t seem to be spending its allocated budget. If you’re scratching your head wondering why, don’t worry—you’re not alone. 

Today we’re covering some of the most common reasons your Google Ads account may not be spending, along with tips to address them.

1. Your campaign is new

When you launch a new campaign, Google doesn’t immediately show your ads to a wide audience. Instead, Google’s algorithms take some time to evaluate your campaign’s quality and relevance. This is often referred to as the “learning phase,” during which Google determines whether your campaign meets the criteria to be shown to the majority of searchers.

What You Can Do:
Be patient and allow your campaign to run for a few days. In the meantime, ensure your ad copy, keywords, and landing pages are optimised for relevance and quality. If you’ve given it some time and your campaign still isn’t spending, return to this list!

2. Low maximum bids or budget

If your maximum bid (the amount you’re willing to pay per click) is too low, your ad may not be competitive enough to appear in search results. Similarly, if your daily budget is too small and you’re in a niche with high costs per click (CPC), your ads may barely run.

What You Can Do:

• Research your industry’s average CPC using tools like Google’s Keyword Planner.
• Adjust your bids and budget to align with market expectations.
• Start with a slightly higher bid to gain initial traction and lower it gradually as your campaign gains performance data.

3. Your targeting is overly narrow

Highly specific targeting—whether by location, demographic, or interest—can limit your ad’s reach. While it’s important to define your audience, going too narrow can result in low search volume and, consequently, minimal ad spend.

What You Can Do:

• Broaden your targeting criteria. For example, consider expanding your location radius or loosening demographic restrictions, if that’s something that is possible for your business.
• Use Google’s audience insights to identify untapped segments that align with your goals.

4. It has a low click-through rate (CTR)

Google prioritises ads with higher CTRs because they indicate relevance and popularity with users. If your ad isn’t engaging enough compared to competitors targeting similar search terms, it may struggle to gain visibility and over time your account will spend less.

What You Can Do:

• Rewrite your ad copy to make it more compelling and relevant. Highlight unique selling points, include a strong call-to-action (CTA), and align your messaging with the search intent.
• Experiment with different ad formats, such as responsive search ads, to increase engagement.
• Regularly review your search terms report to identify and exclude irrelevant queries with negative keywords.

5. You’re using an incorrect bid strategy for your situation

Certain bid strategies, like Target CPA or Target ROAS, require historical conversion data to work effectively. If your account lacks this data, these strategies may underperform or cause your ads to be shown infrequently.

What You Can Do:

• If you’re just starting out, use simpler bidding strategies such as Manual CPC or Maximise Clicks.
• Transition to performance-based strategies once you’ve accumulated enough conversion data.

6. You don’t have conversion tracking in place

Google rewards advertisers who provide clear performance metrics, such as conversions, because it helps optimise campaigns. Without conversion tracking, Google’s algorithms may limit your ad exposure as they cannot gauge your campaign’s effectiveness.

What You Can Do:

• Set up conversion tracking in Google Ads or Google Analytics. This involves tracking actions like form submissions, purchases, or calls.
• Test your tracking setup to ensure it’s functioning correctly. Once active, your account is more likely to gain visibility over time.

A Google Ads campaign not spending its budget can be a sign of optimisation opportunities rather than failure. By reviewing your campaign settings, targeting, and bidding strategies, you can identify and address the root cause. Remember, Google Ads is an ever-evolving platform that rewards continuous learning and adjustment, so persistence and strategic changes are key.

Need help with Google Ads? Our specialists combine strategy, insight and a deep understanding of the platform to deliver optimal performance for businesses in a range of industries. Get in touch today to talk about how we can help you.