How to Improve Google Ads Performance in 2026: 15 Strategies (+ What AI Tools Miss)

Your Google Ads campaigns started strong. $45 cost per lead. 4x ROAS. Six months later, cost per lead has climbed to $85, and you're not sure why. You've tried tweaking bids, testing new ad copy, even asked ChatGPT for tips. Nothing sticks.

You're not imagining it. Google Ads performance declines over time for most accounts. Audiences fatigue. Competitors adjust. Google's algorithm shifts. The average conversion rate across Google Search Ads sits at about 7% in 2026, but most small and mid-size businesses fall well below that.

Here's the trap: you search "how to improve Google Ads performance" and get the same generic tips recycled from 2022. Or you hand your account to an AI tool that makes changes without understanding your business.

As one business owner put it: "We don't get any data from him on the Pay-Per-Click stuff. I wouldn't know if we got anything to show for it or not."

That kind of helplessness isn't acceptable. This post gives you 15 specific strategies to improve your Google Ads performance, organized by category, with benchmarks, implementation steps, and real examples. Plus, we'll cover where AI tools fall short and when it's time to bring in human expertise.

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Targeting Strategies

Getting your ads in front of the right people is the foundation of everything. Poor targeting means you're paying for clicks that will never convert.

1. Refine Your Audience Segments

What it is: Narrowing who sees your ads based on demographics, interests, and past behavior instead of casting a wide net.

Why it works: Google's 2026 data shows that in-market audiences (people actively researching your product category) convert at 2-3x the rate of broad targeting. Layering audience signals onto your campaigns lets Smart Bidding focus spend on high-intent users.

How to implement:

• Open your campaign and go to Audiences > Edit Audience Segments
• Add in-market audiences relevant to your service (e.g., "Business Services" for B2B)
• Layer custom segments using competitor URLs and relevant search terms
• Set audiences to "Observation" first to gather data, then switch to "Targeting" once you see which segments convert

Real example: A home services company added in-market audiences for "Home Renovation Services" and saw cost per acquisition (CPA) drop 28% in 60 days, with no change to ad copy or bidding.

2. Tighten Geo-Targeting

What it is: Restricting your ads to locations where your actual customers are, not just where people show "interest" in your area.

Why it works: By default, Google targets people "in, regularly in, or who've shown interest in" your location. That means someone in another province Googling your city could trigger your ad. Switching to "Presence: People in or regularly in your targeted locations" eliminates this waste.

How to implement:

• Go to Campaign Settings > Locations > Location Options
• Change from "Presence or interest" to "Presence: People in or regularly in your targeted locations"
• Review your geographic report (Insights > Locations) to see where clicks actually come from
• Exclude low-performing areas

Real example: A Calgary-based legal firm found that 22% of their clicks came from users outside Alberta showing "interest" in Calgary. Switching to Presence-only targeting saved $1,400/month in wasted spend.

3. Use Dayparting to Match Customer Behavior

What it is: Adjusting when your ads show (and how much you bid) based on the hours and days that generate the best results.

Why it works: Not every hour produces equal results. B2B services often see conversion rates drop 40-60% outside business hours. Running ads 24/7 at the same bid wastes money during low-performing windows.

How to implement:

• Go to Insights > When conversions happen (or Campaigns > Ad Schedule)
• Identify your top-performing hours and days
• Create a custom ad schedule that increases bids during peak hours and decreases (or pauses) during off-peak
• Review monthly, because seasonal shifts change the pattern

Real example: An accounting firm discovered that 78% of their conversions happened between 8 AM and 2 PM on weekdays. By reducing bids 50% after 3 PM and pausing weekends, they cut CPA by 19% without losing lead volume.

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Bidding Strategies

How you bid determines how much you pay per click and whether Google's algorithm works for you or against you.

4. Pair Smart Bidding with Broad Match (Carefully)

What it is: Using Google's automated bidding strategies (Target CPA, Target ROAS, Maximize Conversions) alongside broad match keywords to let the algorithm find converting queries.

Why it works: In 2026, Google's Smart Bidding has improved significantly. When paired with broad match, it can discover high-converting search queries you'd never find manually. Google's own data shows this combination delivers 20% more conversions at a similar CPA for mature accounts.

How to implement:

• Only use this approach on campaigns with 30+ conversions per month (the algorithm needs data)
• Start with Target CPA or Target ROAS, not Maximize Conversions (which has no cost guardrails)
• Add broad match keywords gradually. Start with 2-3 of your top-performing exact match keywords
• Monitor the Search Terms Report weekly for the first month
• Build negative keyword lists aggressively (more on this in Strategy 14)

Real example: A SaaS company moved their top campaign from manual CPC to Target CPA with broad match. After a 2-week learning period, conversions increased 34% while CPA stayed within 5% of their target.

5. Set Bid Adjustments by Device

What it is: Increasing or decreasing bids for mobile, desktop, and tablet based on which devices actually convert for your business.

Why it works: Average conversion rates differ dramatically by device. For many B2B services, desktop converts 2-3x higher than mobile. But mobile might drive phone calls that don't show up in standard conversion tracking (see Strategy 12).

How to implement:

• Go to Campaigns > Devices to see performance by device
• If mobile converts at half the rate of desktop, apply a -30% to -50% bid adjustment for mobile
• If mobile drives phone calls, set up call tracking first (Strategy 12) before reducing mobile bids
• Review quarterly as mobile behavior shifts

Real example: A commercial insurance broker found that mobile clicks cost the same as desktop but converted at one-third the rate. A -40% mobile bid adjustment saved $2,100/month while maintaining the same number of qualified leads.

6. Create Automated Rules for Budget Protection

What it is: Setting up rules that automatically pause campaigns, adjust bids, or send alerts when performance hits certain thresholds.

Why it works: Google Ads can burn through budget quickly if something breaks. A landing page goes down. A competitor drives up CPCs. An irrelevant query starts eating spend. Automated rules catch these problems before they get expensive.

How to implement:

• Go to Tools > Bulk Actions > Rules
• Create a rule that pauses any keyword with a CPA 3x above your target and 0 conversions in the last 14 days
• Create an alert rule that emails you when daily spend exceeds 150% of your average
• Set a rule that lowers bids by 15% on keywords with CPA above target for 7 consecutive days

Real example: A dental practice set up a rule to pause keywords spending more than $200 with zero conversions over 14 days. In the first month, the rule caught three high-spend, zero-conversion keywords that were wasting $640/month.

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Creative Strategies

Your targeting and bidding can be perfect, but weak ad creative still kills performance. In 2026, Google's responsive formats reward advertisers who give the algorithm more (and better) options to work with.

7. Run Structured A/B Tests on Ad Copy

What it is: Testing one variable at a time (headline, description, CTA) with enough data to know which version actually wins.

Why it works: Most advertisers "test" by running multiple ad variants simultaneously without controlling variables. That's not testing. That's guessing. Structured A/B tests with clear hypotheses and statistical significance give you reliable answers.

How to implement:

• Test one element at a time: start with headlines (they have the biggest impact on CTR)
• Run each test for at least 2-4 weeks or until you have 100+ clicks per variant
• Use Google Ads Experiments (Campaign > Experiments) for clean split tests
• Document every test and result so you build a library of what works for your audience

Real example: A roofing company tested "Free Estimate" vs. "Get Your Quote in 24 Hours" as the primary headline. The specific timeline version increased CTR by 23% and conversion rate by 11%. Specificity beats vagueness every time.

8. Maximize Responsive Search Ad Potential

What it is: Providing Google with 15 headline options and 4 description options so the algorithm can find the best combinations for each query.

Why it works: Responsive search ads (RSAs) now deliver about 12% higher CTRs than standard ads. But most advertisers only fill in 5-8 headlines and 2 descriptions, leaving performance on the table. Ads rated "Excellent" for ad strength see 15% more conversions on average.

How to implement:

• Fill all 15 headline slots and all 4 description slots
• Include your target keyword in at least 3 headlines
• Use pin positions sparingly. Pin your brand name to Position 1 if needed, but let Google test the rest
• Include different value propositions: price, speed, quality, trust, outcomes
• Review the "Combinations" report monthly to see what Google is actually showing

Real example: An HVAC company went from 6 headlines ("Good" ad strength) to 15 headlines with varied angles ("Excellent" ad strength). Impressions increased 22% and CPA dropped 14% over 45 days.

9. Use All Relevant Ad Extensions (Assets)

What it is: Adding sitelinks, callouts, structured snippets, call extensions, and location extensions to your ads. Google now calls these "assets."

Why it works: Ad extensions increase your ad's visual footprint in search results and give users more reasons to click. Sitelinks alone can increase CTR by 10-15%. Google now factors extension quality into your Quality Score, so this directly impacts your ad rank and CPC.

How to implement:

• Sitelinks: Add 4-6 sitelinks with descriptions pointing to your most important pages (pricing, case studies, contact, specific services)
• Callouts: Add 4-6 short phrases highlighting differentiators ("No Setup Fees," "24/7 Support," "15% Flat Fee")
• Structured snippets: Use "Services" or "Types" headers to list what you offer
• Call extensions: Show your phone number (essential for mobile)
• Location extensions: Connect your Google Business Profile
• Review extension performance monthly and replace underperformers

Real example: A plumbing company added sitelinks, callouts, and call extensions to their campaigns. CTR increased from 4.2% to 5.8% (a 38% improvement), and the increased engagement improved Quality Scores across the account.

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Tracking Strategies

You can't improve what you can't measure. And in 2026, tracking is both more important and more complex than ever due to privacy changes and attribution challenges.

10. Audit Your Conversion Tracking Setup

What it is: Verifying that your Google Ads account is correctly tracking the actions that matter to your business (form fills, phone calls, purchases, bookings).

Why it works: Broken or incomplete conversion tracking is the single most common issue in underperforming accounts. If Google's algorithm doesn't know which clicks convert, Smart Bidding can't work. And you can't calculate real ROAS.

A common finding during account audits: "Glaring inconsistencies in the setup... 90% of the budget is funneled toward inappropriate keywords" because tracking wasn't feeding the algorithm the right signals.

How to implement:

• Go to Tools > Conversions and verify each conversion action fires correctly
• Use Google Tag Assistant (Chrome extension) to test tags on your landing pages
• Check that "Include in conversions" is set correctly. Phone calls and form fills should be included. Page views should not
• If you're using Google Analytics 4 (GA4), verify that imported conversions match Google Ads conversion counts
• Test every form and landing page quarterly. Forms break after website updates more often than you'd think

Real example: An e-commerce store discovered that their purchase conversion tag had been broken for 3 weeks after a website redesign. During that time, Smart Bidding was operating blind, spending aggressively on non-converting traffic. Fixing the tag and re-training the algorithm recovered performance within 10 days.

11. Choose the Right Attribution Model

What it is: Deciding how credit for a conversion gets distributed across the clicks and touchpoints that led to it.

Why it works: Google's default attribution model is now data-driven attribution (DDA), which uses machine learning to assign credit across multiple touchpoints. This gives Smart Bidding a more accurate picture of which keywords and ads contribute to conversions, even if they weren't the final click.

How to implement:

• Go to Tools > Conversions > Select a conversion action > Attribution model
• Use data-driven attribution if your account has enough conversion volume (50+ conversions in 30 days)
• If you don't have enough data, use time-decay or position-based as alternatives
• Avoid last-click attribution. It gives all credit to the final touchpoint and starves upper-funnel keywords of data

Real example: A B2B software company switched from last-click to data-driven attribution and discovered that branded keywords were getting 90% of the conversion credit while generic keywords (which actually introduced prospects) got none. After the switch, Smart Bidding increased bids on high-funnel keywords, and overall lead volume increased 18%.

12. Set Up Call Tracking

What it is: Using dynamic number insertion (DNI) to track which Google Ads keywords, ads, and campaigns generate phone calls.

Why it works: For service businesses, phone calls are often the most valuable conversion. Without call tracking, you're missing 30-50% of your conversions. That means Smart Bidding is undervaluing your best keywords and over-bidding on keywords that only generate form fills.

How to implement:

• Enable Google Ads call tracking (free) in your call extension settings
• For deeper tracking, use a third-party tool (CallRail, CallTrackingMetrics) with dynamic number insertion on your landing pages
• Set a minimum call duration for counting conversions (60-90 seconds filters out wrong numbers and quick hang-ups)
• Import call conversions into Google Ads so Smart Bidding can use the data

Real example: A law firm added call tracking and discovered that their "accident lawyer" campaign was driving 3x more phone call leads than their form-focused "personal injury" campaign. Before call tracking, they were about to pause the "accident lawyer" campaign because form fills looked low.

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Structure Strategies

Campaign structure is the backbone of your account. Poor structure creates data fragmentation, limits the algorithm, and makes your account harder to manage.

13. Simplify Your Campaign Architecture

What it is: Restructuring your campaigns around business goals and conversion types rather than creating dozens of micro-campaigns.

Why it works: In 2026, Google's Smart Bidding works better with consolidated campaigns that have more conversion data. Splitting your budget across too many campaigns starves each one of the data it needs. Google recommends at least 30 conversions per campaign per month for optimal Smart Bidding performance.

How to implement:

• Group campaigns by conversion type (leads vs. sales vs. bookings) and budget priority
• Aim for 3-7 campaigns for most small and mid-size accounts, not 20+
• Use ad groups to organize themes within campaigns (this is where your keyword grouping lives)
• Each ad group should contain tightly themed keywords (5-15 keywords per ad group)

Real example: A home renovation company had 24 campaigns with an average of 8 conversions each per month. After consolidating into 6 campaigns (organized by service type), average conversions per campaign hit 32 per month. Smart Bidding performance improved within 3 weeks, and CPA dropped 21%.

14. Build a Negative Keyword Strategy

What it is: Proactively identifying and blocking search queries that waste your budget because they're irrelevant, low-intent, or attract the wrong audience.

Why it works: Studies show that proper negative keyword management reduces wasted spend by 20-40%. In 2026, this is even more critical because broad match and Smart Bidding expand your reach into queries you didn't explicitly target. Without negative keywords as guardrails, the algorithm feeds on noisy data.

Google also increased the Performance Max negative keyword limit to 10,000 per campaign in 2025, acknowledging how essential this is.

How to implement:

• Review your Search Terms Report weekly (minimum) for the first 3 months, then bi-weekly
• Build a master negative keyword list organized by category: competitors, irrelevant services, job seekers ("hiring," "salary," "careers"), DIY intent ("how to," "tutorial," "free")
• Apply account-level negatives for universally irrelevant terms
• Apply campaign-level negatives for terms that are relevant to other campaigns but not this one
• For Performance Max campaigns, add negative keywords through Google Ads support or the new interface option

Real example: A commercial cleaning company found that 35% of their clicks came from residential cleaning searches ("house cleaning," "maid service," "home cleaning"). Adding these as negative keywords saved $3,200/month and improved conversion rate from 4.1% to 6.8%.

15. Focus on Quality Score

What it is: Improving the three factors Google uses to determine your ad quality: expected CTR, ad relevance, and landing page experience. Quality Score is rated 1-10 for each keyword.

Why it works: A Quality Score of 8 or higher can reduce your CPC by up to 43% compared to a score of 5 or below. Only 12% of advertisers achieve scores of 8+, which means improving Quality Score gives you a real competitive advantage.

As one industry report noted, "Nearly 50% of advertisers report PPC management is more complex today than two years ago." Quality Score is one area where focused effort still produces outsized returns.

How to implement:

• Expected CTR: Write compelling ad copy with your target keyword in the headline. Use ad extensions. Test aggressively (Strategies 7-9).
• Ad relevance: Ensure your ad groups are tightly themed. The keyword, ad copy, and landing page should all speak the same language.
• Landing page experience: Fast load times (under 3 seconds), mobile-friendly design, clear CTA, content that matches the ad's promise. Don't send all traffic to your homepage.
• Check Quality Scores in the Keywords tab > Columns > Quality Score. Filter for keywords scoring 5 or below and prioritize those.

Real example: A financial advisor improved Quality Scores from an average of 5 to 7 across their account by creating dedicated landing pages for each ad group (instead of sending all traffic to the homepage). Average CPC dropped from $8.40 to $5.60, saving $2,800/month on the same click volume.

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When DIY Optimization Hits Its Limit

These 15 strategies work. But there's a point where doing it yourself stops making sense.

Here are the signs:

• You're spending $3,000+/month on ads and can't point to a clear ROI
• You've tried multiple optimizations but results are inconsistent month to month
• You don't have time to review Search Terms Reports weekly
• Your conversion tracking is a mess and you're not sure what's accurate
• You've been running the same campaign structure for 6+ months without a major audit

What AI tools do well

AI-powered tools like Google's automated recommendations, Performance Max, and third-party platforms handle certain tasks effectively. Bid adjustments. Pattern recognition. 24/7 monitoring. Running combinations at scale. These are real advantages.

What AI tools miss

AI tools don't understand your business context. They can't tell you that your best customers come from a specific industry. They don't know that your phone leads are worth 3x your form fills. They can't build a negative keyword strategy based on your specific competitive landscape. And they definitely can't spot that your landing page copy doesn't match what your sales team actually says on calls.

This is what we mean by Human-First AI. At Catmo, we use AI to work faster, not to replace strategic thinking. Our AI agents monitor campaigns 24/7 and flag issues in real time. But humans make the strategic decisions: which audiences to target, how to structure campaigns, what your messaging should say, and when to pivot.

If your in-house team is stretched thin and your marketing strategy needs expert support, the answer isn't more AI automation. It's the right combination of technology and human judgment.

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Your Next Step

You now have 15 specific strategies to improve your Google Ads performance. Some you can implement today. Others take more time and expertise.

If you want an expert set of eyes on your account, here's what we offer:

Get a Free Google Ads Audit. We'll review your campaign structure, targeting, bidding, creative, and tracking setup. You'll get 3-5 quick wins you can implement immediately, plus a long-term roadmap. No sales pitch. Just a clear assessment of where your money is going and where it should be going.

Get Your Free Google Ads Audit

Want to start optimizing right now? Download our 27-Point Google Ads Optimization Checklist and work through it at your own pace.

Not ready for an audit but have a specific question? Talk to a strategist. 15 minutes. No commitment. Just answers.

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