The Problem: You’re Paying More to Get the Same Customer
If you’ve been running Google Ads for your Brisbane business for more than a year, you’ve probably noticed something frustrating. That lead that used to cost you $40 is now costing you $80. Your phone isn't ringing any more than it used to, but your credit card is getting hit twice as hard every month.
I see this constantly with local businesses, from electricians in Coorparoo to law firms in the CBD. Most business owners assume it’s just "inflation" or that Google is getting greedy. While Google definitely wants your money, the real reason your costs have doubled is usually more logical—and more fixable—than you think.
In this guide, I’m going to break down the cold, hard numbers behind why your ads are getting more expensive and show you the exact moves we use at Local Marketing Group to drive those costs back down.
1. The "Set and Forget" Tax
Most Brisbane business owners treat Google Ads like a toaster: you plug it in, push the button, and expect it to work forever. But Google isn't a toaster; it’s an auction. Every day, new competitors enter the market.
If you haven't touched your account in six months, you are paying a "laziness tax." Your competitors are likely using newer settings that tell Google exactly who their best customers are, while you’re still targeting everyone with a pulse.
When you target everyone, you win the wrong auctions. You pay for clicks from people looking for DIY advice, people looking for jobs, or people outside your service area. Every one of those clicks costs you money but results in zero sales. To fix this, you need to be brutal with your data. Look at what people actually typed into Google before they clicked your ad. If it wasn't a "buy now" or "book now" phrase, you shouldn't be paying for it.
2. Your Website is Losing You Money
Google doesn't just look at how much you’re willing to pay for a click. They look at what happens after the click. If someone clicks your ad, lands on your site, and leaves immediately because it doesn't work well on their phone or takes too long to load, Google notices.
They call this a bad experience. To punish you for it, they charge you more. It’s their way of keeping their users happy.
Think of it like this: if two plumbers are bidding for the same keyword, but Plumber A has a site where 50% of visitors call him, and Plumber B has a site where only 5% call him, Google has to charge Plumber B ten times more to make the same amount of money.
If your lead costs have doubled, look at your website first. Does it load in under three seconds? Is the phone number the first thing people see? Does it work perfectly on a cracked iPhone screen? If the answer is no, you are throwing money away.
3. The "Smart" Campaign Trap
Google loves to push small business owners toward "Smart" campaigns. They promise it’s easy and automated. For a busy business owner, it sounds like a dream.
In reality, it’s often a way for Google to spend your budget on the cheapest, lowest-quality traffic available. We’ve audited accounts where 40% of the budget was being spent on "Display" ads—those little banners you see on gaming apps or news sites. While you can get in front of thousands for a low cost this way, it rarely results in a phone call for a local service business.
You want people who are actively searching for what you do right now. If your lead cost has spiked, check if Google has "automatically" opted you into their partner networks. Turning these off and focusing only on the search results page is often the fastest way to cut your costs in half overnight.
4. You Aren't Blocking the Junk
Every day, people search for things that are related to your business but will never result in a sale.
- If you’re a high-end renovator, you don't want people searching for "cheap bathroom tiles." - If you’re a commercial lawyer, you don't want "free legal aid." - If you’re a mechanic, you don't want "how to change my own oil."
If you don't actively block the wrong searches, Google will happily take your money for them. Over time, as more people use Google for research rather than buying, these junk clicks eat up more of your budget.
I recently looked at an account for a landscaper in the Western Suburbs. He was spending $1,500 a month. When we looked at the data, $600 of that was going to people looking for "garden ideas" and "DIY paving tips." He wasn't getting leads because his budget was gone by 10:00 AM on people who weren't even looking to hire a professional.
5. The Auction is Getting Crowded
Let’s be honest: Brisbane is a competitive market. Five years ago, you might have been one of three local businesses bidding for "pest control Brisbane." Today, there are probably twenty.
When competition goes up, the price of a click goes up. This is basic supply and demand. However, most business owners react to this by lowering their bids. This is the worst thing you can do.
When you lower your bids in a crowded market, you end up in the #4 or #5 spot on the page. People rarely click those, and when they do, they are usually "window shoppers" who are clicking every ad to find the cheapest price.
Instead of bidding less on everything, you should be bidding more on the specific suburbs or services that actually make you money. If you make more profit on hot water system replacements than on fixing leaky taps, why are you paying the same amount for both clicks?
How to Fix It: Your 3-Step Plan
If your lead costs are out of control, here is exactly what I would do if I were sitting in your office today:
Step 1: Audit Your Search Terms
Go into your Google Ads account and look at the "Search Terms" report. Not the keywords you think you're buying, but what people actually typed. If you see words like "free," "cheap," "jobs," or "how to," add them as negative keywords immediately. This stops the bleeding.Step 2: Check Your "Mobile" Experience
Pull out your phone and try to use your own website. Is the phone number a button you can click with your thumb? Does the contact form have 10 fields (too many) or just 3? If your site is hard to use, your ads will always be expensive.Step 3: Focus Your Budget
Stop trying to cover the whole of South East Queensland on a $50-a-day budget. You'll be spread too thin and end up with nothing. Pick your 5 most profitable suburbs and 3 most profitable services. Dominate those first. Once the phone is ringing consistently, then you can look at expanding.Is it Worth the Money?
I get it—Google Ads can feel like a black hole for your cash. But when it's done right, it's still the fastest way to grow a business in Brisbane. Unlike Facebook, where you're interrupting people, Google allows you to show up at the exact second someone needs your help.
You shouldn't accept doubling lead costs as "just the way it is." It’s usually a sign that your account is outdated and needs a professional tune-up.
If you’re tired of seeing your budget disappear with nothing to show for it, we can help. At Local Marketing Group, we specialise in getting the phone to ring for Brisbane small businesses without the technical fluff.
Ready to get your lead costs under control? Contact Local Marketing Group today.