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Advertising intermediate 45-60 minutes

How to Optimise Your PPC Budget for Maximum ROI

Learn how to stop wasting ad spend and focus your budget on the keywords and campaigns that actually drive revenue for your Australian business.

Sarah 18 January 2026

For many Australian small business owners, running a Pay-Per-Click (PPC) campaign can feel like pouring money into a black hole. However, when managed correctly, platforms like Google Ads and Meta Ads are the most powerful tools available to drive immediate leads and sales. Optimising your budget isn't just about spending less; it’s about ensuring every dollar you invest delivers a measurable return on investment (ROI).

Prerequisites

Before we dive in, ensure you have the following ready:
  • An active Google Ads or Meta Ads account.
  • Conversion tracking installed (e.g., Google Tag Manager or Meta Pixel).
  • At least 30 days of historical campaign data (if possible).
  • A clear understanding of your profit margins per product or service.

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Step 1: Audit Your Conversion Tracking

You cannot optimise what you cannot measure. Many businesses make the mistake of tracking 'clicks' instead of 'actions.' Ensure you are tracking high-value actions like form submissions, phone calls (via call tracking), or e-commerce purchases. What you should see: In Google Ads, navigate to Goals > Conversions. You should see a list of active conversion actions with a status of 'Recording conversions.' If this is empty, your budget is being spent blindly.

Step 2: Identify and Cut 'Bleeding' Keywords

Navigate to your Search Terms report. Look for keywords that have high spend but zero conversions over the last 30 days. These are 'bleeder' keywords that are draining your Australian marketing budget. Pro Tip: Look for terms that are too broad. For example, if you are a Brisbane plumber, you don't want to pay for someone searching 'how to fix a leaky tap' (DIY intent); you want 'emergency plumber Brisbane' (hiring intent).

Step 3: Implement a Robust Negative Keyword List

Negative keywords prevent your ads from showing for irrelevant searches. This is the fastest way to save 20-30% of your budget instantly. Add terms like 'jobs,' 'free,' 'cheap,' or 'course' if they don't align with your premium service offering. Common Mistake: Forgetting to check your negative keyword list regularly. Set a calendar reminder to review search terms every fortnight.

Step 4: Optimise for Peak Performance Times (Ad Scheduling)

Not all hours of the day are created equal. Use your data to see when your customers are most likely to convert. If you are a B2B service provider in Perth, you might find that your ads perform best between 8:00 AM and 5:00 PM, Monday to Friday. Action: Go to Ad Schedule in your campaign settings. You can decrease bids by 50% or turn ads off entirely during low-performing hours (like 2:00 AM) to preserve budget for high-intent daytime traffic.

Step 5: Leverage Geo-Targeting for Local Relevance

If you only service South East Queensland, make sure your ads aren't showing in Sydney or Melbourne. Use 'Location Groups' or specific postcodes to narrow your focus. What you should see: In the Locations tab, you'll see a map showing where your clicks are coming from. If you see high spend in areas you don't service, exclude them immediately. Ensure your setting is 'Presence' (people in your location) rather than 'Presence or Interest' (which targets people searching about your location from elsewhere).

Step 6: Focus on High-Performing Devices

Review whether your customers convert better on desktop or mobile. Often, service-based businesses see higher phone call volumes from mobile, while e-commerce or complex B2B services see higher conversion rates on desktop. Action: Adjust your 'Bid Adjustments' by device. If mobile is driving 80% of your leads, consider increasing your mobile bid by 10-20% and decreasing your desktop bid.

Step 7: Improve Your Quality Score

Google rewards relevance. A higher Quality Score (out of 10) leads to a lower Cost Per Click (CPC). You improve this by ensuring your ad copy matches your keywords and your landing page provides a great user experience. Pro Tip: Use the 'Ad Strength' indicator as a guide, but focus more on the 'Landing Page Experience' metric within your keyword report.

Step 8: Reallocate Budget to 'Winners'

Once you’ve identified which campaigns or ad groups have the lowest Cost Per Acquisition (CPA), move budget away from underperforming campaigns and into the winners. This sounds simple, but many business owners leave budgets 'even' across all campaigns out of habit.

Step 9: Use Remarketing to Close the Gap

Most people won't buy on the first visit. By allocating a small portion of your budget (around 10-15%) to Remarketing, you can show ads to people who have already visited your site. This usually results in a much higher ROI as the audience is already 'warm.'

Step 10: Test Automated Bidding Strategies

Once you have at least 30 conversions per month, experiment with Google’s AI-driven bidding strategies like 'Target CPA' (Cost Per Acquisition) or 'Maximise Conversions.' This allows the algorithm to bid more aggressively when it thinks a conversion is likely.

Warning: Don't switch to automated bidding too early. The AI needs data to learn. If you switch with zero conversion history, it will likely overspend on poor-quality traffic.

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Troubleshooting Common Issues

  • My ads aren't showing at all: Check if your daily budget is too low for your target CPC. If your CPC is $5 and your daily budget is $10, Google may struggle to enter auctions. Also, check your ABN verification status in the 'Billing' section, as Google now requires this for Australian advertisers.
  • High clicks, no conversions: This usually indicates a 'disconnect' between the ad and the landing page. Is your landing page mobile-friendly? Does it have a clear 'Call to Action' (CTA)?
  • Budget is exhausted by 10:00 AM: This means your keywords are too broad or your bids are too high. Try narrowing your geographic targeting or using 'Phrase Match' instead of 'Broad Match' keywords.

Summary Checklist

  • [ ] Conversion tracking is verified and working.
  • [ ] Negative keywords have been added this week.
  • [ ] Location targeting is restricted to your service area.
  • [ ] Budget has been shifted from low-ROI to high-ROI campaigns.
  • [ ] Ad scheduling is active for peak business hours.

Next Steps

Optimising your PPC is an ongoing process, not a 'set and forget' task. If you're finding the technical side of Google Ads overwhelming, or you're worried your budget is being wasted, we can help.

Our team at Local Marketing Group specialises in helping Australian businesses squeeze every drop of value out of their ad spend. Contact us today for a free PPC audit and let's get your ROI back on track.

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