Google Ads management guide /
How the auction works, and where a small budget gets wasted.
We look at what your ads are being triggered by and where the clicks land, and send you back where the budget is leaking.
By Reece Rainer
spareday, Newcastle NSW
Last updated
25 August 2026
Read time
7 minutes

Google Ads puts your business at the top of a search result for as long as you are paying. You are charged when somebody clicks, not when they see you.
It is the fastest channel to switch on and the easiest to waste money on. What follows is how the auction actually decides who appears, where a small Newcastle budget leaks, and what to have in place before you spend anything.
You choose the searches you want to appear for and what a click is worth to you. Google runs an auction each time somebody searches, and how relevant your ad and page are affects what you pay as much as your bid does.

The part owners find surprising is that the highest bid does not simply win. Google weighs how relevant your ad is to the search and how well your page answers it, so a more relevant advertiser can appear above a higher bidder and pay less for it.
That last one is why paid and unpaid search are less separate than they look. A good page makes advertising cheaper as well as ranking better.
When people are already searching for what you sell, when a job is worth enough to absorb a few clicks, and when the page you send them to actually asks for something.

Search advertising buys you people who were already looking. That makes it the most direct channel there is, and the most expensive per person for the same reason.
Loose keyword matching, no negative keywords, advertising outside your area, and sending every click to the home page. Those four account for most of the waste we find in small accounts.
Almost every small account we are asked to look at is leaking in the same places, and all four are visible from one report.
The search terms report is where all of this becomes obvious. It lists the actual searches people typed before clicking, and reading a fortnight of it usually explains where the money went.
Which clicks became enquiries. Without that, the account optimises towards clicks, which is the thing you are paying for rather than the thing you want.
This is the step that gets skipped and it is the one that makes everything afterwards possible. Google can steer an account towards a result, and only if it is told what a result is.
Google's own guidance on conversion tracking covers the setup, and it is worth doing before the first day of spending rather than in month two.
Set up the counting first, choose a small list of exact searches, write the negatives, send each ad to a matching page, then read the search terms report every week.

Forms and calls, recorded as results, before a dollar is spent. Everything after this depends on it.
A short list of searches you are certain about, matched tightly. Widening is easy later. Recovering a wasted first month is not.
Free, cheap, jobs, courses, DIY, and every service you do not offer. This list keeps growing and that is normal.
Not the home page. The page that answers the search you paid for.
People in your area, not people interested in it. This one setting quietly spends a lot of money.
The actual searches that triggered your ads. Ten minutes, and it is where the next negative keywords come from.
Clicks arrive the day it is switched on. Knowing whether it works takes longer, because you need enough enquiries to tell a pattern from a good week.
It also stops the day you stop paying, which is the honest difference between this and search work. Both are reasonable and they are not the same purchase.
Ask whose account the advertising runs in, what is being counted as a result, whether you can see the search terms report, and what the management fee is separate from the spend.

We do this work in Newcastle, so we are not neutral. These are the questions we would want asked of us.
A small budget is often better spent on the free half first. Advertising gets cheaper once the pages and the listing are working, so the order is worth arguing about before the spending starts.
If you do one thing after reading this, open your search terms report and read a fortnight of the actual searches you paid for. On most small Newcastle accounts we look at, that report explains the whole bill.
No. Google weighs how relevant your ad and your page are to the search, so a more relevant advertiser can appear higher and pay less.
Loose keyword matching, a missing negative keyword list, location settings that reach people outside your area, and every click landing on the home page.
The list of words that should never trigger your advertisement. Free, jobs, DIY, and the names of services you do not offer.
No. It should land on the page about the thing that was searched for, which is also part of what decides your cost per click.
It is faster and it stops when you stop paying. Search work is slower and it holds. Most businesses end up running both, in that order.
One monthly fee that covers everything, month to month, with no lock-in contract. The number depends on what your business needs, so we give it to you on the call.
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This is one part of what else we look after.