Why Google Wants to Spend Your Money (And Why You Should Care)
If you’ve ever run Google Ads for your business, you’ve seen the prompts. Google loves to tell you to “switch to automated bidding” or “let our AI find your customers.” It sounds great in theory. Who wouldn't want a smart computer doing the hard work while you’re out on a job site or meeting with clients?
But here is the reality I see every day with Brisbane business owners: Google’s AI doesn't care about your profit. It cares about data.
There is a massive difference between Google getting you a "click" and you getting a phone call from a customer ready to pay. If you set your ads to autopilot too early, or without the right guardrails, you aren't "investing" in marketing—you’re just donating to Google’s bottom line.
In this guide, I’m going to break down when you should let the machine take over and when you need to keep your hands firmly on the steering wheel to ensure you actually get more customers.
The Battle: Smart Bidding vs. Manual Bidding
In plain English, Manual Bidding is when you tell Google exactly how much you are willing to pay for a click. If you decide a click for "Plumber in Coorparoo" is worth $10, that’s what you bid. You have total control.
Smart Bidding is when you give Google a goal—like "get me as many enquiries as possible for $500 a week"—and let its computer decide how much to bid on every single person searching.
Most of what you read online says Smart Bidding is the only way to go. I’m telling you that’s rubbish. I’ve seen it work wonders for a law firm in the CBD, and I’ve seen it absolutely bankrupt a small landscaping business in the suburbs because the AI got “confused” and started chasing the wrong people.
When AI Gets It Wrong
Google’s AI is like a very fast, very obedient, but slightly dim-witted employee. If you tell it to get you "leads," it will find the cheapest leads possible.
If your website has a contact form that gets spammed by bots or people looking for free advice, the AI thinks, "Great! This is working!" and starts showing your ads to even more bots and tyre-kickers. Before you know it, your phone isn't ringing, but your Google bill is through the roof. This is why you must fix your tracking before you even think about letting the AI take over. If you feed the machine bad info, it will give you bad results.
The "Golden Rule" for Small Business Owners
Here is the advice I’d give my mate over a beer: Do not use Smart Bidding until you are getting at least 20 to 30 real enquiries a month through your ads.
Why? Because the AI needs a "pattern" to follow. If you only get two calls a month, the AI doesn't have enough information to know what a "good" customer looks like. It’s just guessing with your money.
Start with Manual: The "Hand-to-Hand Combat" Phase
When you first launch ads, or if you’re in a niche, highly competitive local market, you should start with Manual Bidding.You control the cost: You won't wake up to a $200 charge for a single click because the AI got aggressive. You learn the market: You'll see which suburbs and which search terms actually lead to a phone call. You save cash: You can stop your competitors stealing customers by bidding specifically on your own brand name for just a few cents, rather than letting an algorithm overpay.
When to Switch to "Smart" Bidding
Once your ads are humming along and you’re consistently getting leads, that’s when the AI becomes your best friend.
We worked with a mechanic in Morningside who was spending hours every week tweaking his bids. He was exhausted. Once we had enough data to show Google exactly what a "booking" looked like, we switched him to a smart strategy. The result? His cost per booking dropped by 30%, and he got his Saturday mornings back.
The AI is better than a human at one thing: timing. It knows if a person searching at 9:00 PM on a Tuesday is more likely to book than someone searching at 10:00 AM on a Monday. It can adjust your bid in milliseconds. You can't.
Three Red Flags That Your Ads Are Wasting Money
If you are currently using automated or "Smart" bidding, check these three things immediately. If any of these are happening, the AI is failing you:
1. High Spend, No Calls: You’re hitting your daily budget every day, but your phone is silent. This usually means Google is bidding on "broad" terms that have nothing to do with your service. 2. The "Junk" Lead Problem: You’re getting emails, but they’re all from people outside your service area or people looking for something you don't do (e.g., you’re a commercial electrician but you’re getting calls to fix a toaster). 3. Wild Budget Swings: One day you spend $20, the next you spend $150. This happens when the AI is "testing" new audiences with your credit card. If you don't have a large budget for Google Ads, these swings can kill your cash flow.
Practical Steps to Take Today
You don't need to be a tech wizard to fix this. Here is the strategic approach we use at Local Marketing Group to grow Brisbane businesses:
Step 1: Audit Your Leads
Look at your last 10 leads from Google. Were they good? If not, and you're on Smart Bidding, turn it off. Go back to Manual until you can refine your keywords. It is better to have 5 great leads than 50 bad ones that waste your time on the phone.Step 2: Set a "Max Bid" Limit
If you do use Smart Bidding, use the "Target CPA" (Cost Per Acquisition) setting. This tells Google: "I want leads, but I’m not willing to pay more than $X for one." It puts a leash on the AI so it doesn't go rogue.Step 3: Focus on the "Money" Keywords
Don't try to be everything to everyone. If you’re a roofer, don't bid on "roofing ideas." Bid on "emergency roof repair." The AI loves broad terms because they are easy to find, but they rarely turn into sales. Keep your keywords tight and specific to what makes you money.Summary: Will This Make You Money?
Smart Bidding isn't a "set and forget" solution. It’s a tool for scaling a business that already has a working sales process.
If you are new or small: Stick to Manual. Control your costs. Know exactly where every dollar goes.
- If you are established and busy: Use Smart Bidding, but watch it like a hawk. Check your lead quality every single week.
At Local Marketing Group, we don't just click the "automated" button and hope for the best. We treat your marketing budget like it’s our own money—because we know that if we don't get you a result, we don't keep you as a client.
Want to stop guessing and start getting more calls?
Let’s have a straight-talk conversation about what’s actually happening with your ads. No jargon, just a focus on how to get more profit into your bank account.