Isidore Mikorey-Nilsson
Agentic dev and SaaS distribution expert: he builds the acquisition tools he deploys for SaaS founders.
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Key takeaways
- What burns your budget is not the price of the click, it is the off-target traffic you let through.
- A first campaign is pure Search, 3 to 5 exact queries, a dedicated landing page, and conversion tracking set up before launch.
- The only number that matters is not CPC, it is your cost per useful customer.
You have a product that works, a trickle of traffic that never shows up, and the urge to open the tap. Google Ads promises exactly that: be at the top of the results by tomorrow morning. The catch is that the tool is set up by default to spend, not to make you win. According to a WordStream study of more than 15,000 accounts, the average Google Ads account wastes 1,127 dollars a month, more than a third of a typical budget.
So the question is not "does Google Ads work", it is "will YOUR campaign go find customers or feed the machine". Building a clean first campaign comes down to a handful of decisions made in the right order, before you put a single euro in.

What actually burns your budget
The beginner reflex is to look at the cost of the click and panic. Yes, the click is expensive: the average Google Ads CPC rose to 5.42 dollars in 2025, up in 87% of the industries analyzed, according to the benchmarks reported by Search Engine Land. But the price of the click is not your problem. Your problem is the number of clicks you pay for from people who will never buy from you.
The leak hides in the queries that trigger your ads without you really choosing them. A Doctor Ads analysis of 5.2 million zero-conversion search terms found that the most expensive 10% of terms concentrate a median of 48.8% of the wasted spend on their own. A few badly filtered queries are enough to eat half your money.
$1,127
wasted per month by the average Google Ads account
$5.42
average cost of a Google Ads click in 2025
48.8%
of waste concentrated in 10% of queries
The good news is that these leaks are settings, not fate. The same WordStream study notes that 29% of accounts recorded zero conversions over 90 days: in the vast majority of cases, it is not the market that is dead, it is the campaign that was never structured to convert. If you are still wondering whether paid is the right bet at your stage, start with our guide on paid search for SaaS, which settles that question before you do.
How to structure your first Google Ads campaign
A Google Ads campaign that works is not a "bigger" campaign. It is a narrower one. You want a scope so tight that you control who sees your ad, what they read, and where they land. Here is the sequence to run.
Choose Search, nothing else
One ad group = one query theme
Start on 3 to 5 queries in exact match
Add your negative keywords right away
Send traffic to a dedicated landing page
This structure looks austere, and that is the point. Every euro spent must be traceable to a query you chose, an ad you wrote, and a page you prepared. The moment you lose that thread, you are funding half the internet.

The default settings working against you
The trap in Google Ads is not the users' queries. It is the boxes already ticked when you arrive. They are designed to maximize spend across all advertisers, not the profitability of your beginner account. Here are the four settings to take back control of before launch.
| Default setting | What Google does with it | What you do instead |
|---|---|---|
| Performance Max suggested | Spreads your budget across Search, Display, YouTube, Gmail | Search campaign only, until you have data |
| Broad match | Triggers on close but off-target queries | Exact or phrase + negative keywords |
| Display Network included | Shows your banners on random sites | Turn off the Display Network and Search partners |
| Auto-applied recommendations | Changes your campaign without your consent | Disable auto-apply on recommendations |
The rule behind this table: as long as you have no conversions to feed the algorithms, Google's automation works blind with your money. Take back manual control at the start, let the machine take over later, once you have reliable signals to give it. For a broader framing of your paid options beyond Search, see our guide on online advertising for SaaS.
The test budget, and the math that counts
The real question is not "how much do I put into Google Ads", it is "how much does it cost me to get a customer". And that number appears nowhere in the interface: it is calculated.
Take a concrete example. If your click costs 5 euros and 1 visitor in 25 signs up, each signup costs you 125 euros. If 1 signup in 5 becomes a paying customer, your real acquisition cost is 625 euros. That number is neither good nor bad in absolute terms: it only means something relative to what a customer brings you over time. That is why you need to know your LTV/CAC ratio before you even talk budget.

On the amount, think learning budget, not cruising budget. Set aside a sum you can afford to lose entirely (often 300 to 500 euros over two to three weeks) whose only role is to tell you which queries convert. You scale nothing during this phase: you are buying information. Once you know which keyword brings a useful signup and which brings a tourist, you cut the second and reinforce the first.
Tracking before the click
Install conversion tracking BEFORE launching, never after. Without it, you do not know which query brings you customers and which brings you the curious. You then optimize by guesswork, and that is exactly where budgets melt. Remember: nearly 3 accounts in 10 see no conversion over a quarter, often because tracking was never set up properly.
The traps that drain your account
Beyond the settings, three mistakes come up again and again with founders launching their first Google Ads campaign. They do not crash the campaign at once, they drain it slowly.
The first is to confuse clicks with results. A campaign that "generates traffic" is not a campaign that works. As long as a query does not produce a useful signup under your test budget, it must stop, full stop. Google Ads rewards those who cut dead branches fast, not those who hope it will eventually pay off.
The second is to try to create demand by CPC. If no one is searching for your type of solution yet, no budget will manufacture that intent. Paid transforms demand that already exists, it does not invent it. In that case, a channel like sales prospecting or content will serve you better, and for less.
The third is to forget the people who already came. A visitor who clicked your ad, saw your landing page and did not convert is not lost: they are warm. Dropping a pixel and re-engaging them costs a fraction of the price of a first-visit click. That is the whole point of SaaS retargeting, to wire up as soon as your first campaign sends traffic.
Before launching your first campaign
0 / 7Where to start without spreading yourself thin
A Google Ads campaign is never the first channel to launch blind. It is an accelerator: it shines when demand already exists on your market and a page converts that traffic, and it wastes your money everywhere else. Before you touch a keyword, cross what you just read with your real situation: your average deal size, the maturity of your demand, the state of your landing page.
If you want an overview of your paid options, start with online advertising for SaaS, settle the deeper question with paid search for SaaS, then plan retargeting to catch warm visitors. Search finds its real value inside that plan, not alone in its corner.
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