The short version
- 01Smart Bidding learns from your conversions, so feed it actions that make money, not page visits.
- 02Read your search terms weekly while a campaign is new, then block irrelevant queries monthly after.
- 03Do not raise your budget until you know what converts, which searches ran and which pages got clicks.
Google Ads spends your money well when you feed it good information, and very quickly when you don't. Most advertisers still bring the old instinct to it: control. Single keyword ad groups. Granular everything. Every query steered by hand.
That instinct now works against you. AdWords is now Google Ads, the platform runs on machine learning, and Google's own guidance says you don't need to split keywords by match type when you use broad match with Smart Bidding. Performance Max decides where your ads show across Google's inventory. AI Max for Search can match your ads to searches you never added as keywords and write headlines on the fly.
The mistakes have changed with it. Here are the ones we find most often when we open a small business account.
Mistake 1: Feeding the machine bad conversions
It's the most expensive mistake in any automated account, because automated bidding learns from whatever you tell it is a conversion.
If your conversion action is "visited the contact page," Google will find you lots of people who visit the contact page. If it counts every form fill, including spam and job seekers, Google will happily find you more spam and job seekers. Smart Bidding is only as smart as the conversions you feed it.
Fix it this week. Make your primary conversions the actions that make money: purchases, booked appointments, qualified calls over a set length. Turn on enhanced conversions. If you sell offline, send your qualified and closed leads back into Google Ads so bidding can learn which clicks became customers. And if you have customers in the EEA, make sure your consent setup passes the signals Google now expects.
Mistake 2: Fighting broad match with a 2015 playbook
We'll own this one. Single keyword ad groups made sense when you bid manually and match types meant what they said. Today they starve automated bidding of data, splitting a small budget into dozens of ad groups that never collect enough conversions to learn.
Google recommends broad match only with Smart Bidding (Maximize conversions, Maximize conversion value, Target CPA or Target ROAS), and strongly advises against pairing it with manual bids. That is the right instinct. Broad match with manual CPCs is a fast way to buy a lot of irrelevant clicks.
What works now: fewer campaigns, tightly themed ad groups, broad match where conversion tracking is solid, and phrase or exact match where you need to hold the line on cost.
Mistake 3: Never reading the search terms
Negative keywords still matter. Read your search terms report, find the queries that don't fit, and exclude them. A hot dog stand should block "veggie hot dogs." The idea hasn't changed. There are just more places to look now.
Performance Max used to be a black box here. That changed in 2025, when Google rolled out campaign-level negative keywords for Performance Max to all advertisers and added a source column to search term insights. AI Max adds its own match type to the search terms report, plus a column showing whether a query came from broad match expansion or keywordless matching.
So there is no excuse left. Block irrelevant queries weekly while a campaign is new, then monthly once it settles.




