Google Ads recommendations: why they can lose you money (and how to avoid them)

   Many companies in Spain invest in Google Ads expecting immediate results. However, after analysing their campaigns, the problem is usually the same: they have applied the automatic recommendations of Google.

   The paradox? Google promises to optimise but in many cases these suggestions increase your advertising spend without improve performance.

   In this article we explain why Google Ads recommendations can be harmful and what you should do to protect your budget.

 Google is a company with revenue targets

Google Ads is Google's main source of revenue.
Your priority is not your profitability, but to maximise advertising expenditure.

This does not mean that Google “lie”The interests of the advertiser do not always coincide with those of the advertiser.

Google wants you to automate your campaigns

Google is pushing a “set it and forget it” model.

The more automated your account is, the easier it is for Google to spend your full budget each month.

That is why it promotes:

• Performance Max campaigns

• automatic bids

• broad concordance

• network expansion

The problem: these options tend to attract traffic low-skilled.

Google seeks to control your advertising budget

Although Google cannot raise your budget without permission, If you do, you can make sure you spend it.

Examples of configurations that Google recommends:

• broad keyword matching

• Display network

• search partners

• dynamic ads

• geographical expansion

• automatic keyword creation

For many Spanish SMEs, these options generate irrelevant clicks.

Google has advertising inventory it needs to sell

Google has millions of ad placements: search, display, YouTube, apps, partner websites...

When there is insufficient search volume, Google recommends expanding the scope.

Result:
more clicks, but less purchase intent.

This is especially dangerous for companies with limited budgets.

Cheap clicks that make up the CPC

Google mixes expensive clicks (search) with cheap clicks (Display).

Example:

• 1 click on search: €20

• 2 clicks on Display: €1

Average apparent CPC: €7

It looks like an improvement, but most of those clicks do not generate sales. Here you may be interested in how AI-powered automation boosts a solar energy business.

Big business can afford to waste money

Big brands can test all Google Ads strategies.

But SMEs do not.

For a small company, every euro poorly invested has a direct impact on its profitability.

That is why following Google's recommendations without prior analysis is usually a mistake.

   If you apply the Google Ads recommendations without thinking, you are probably overpaying for less results.

This is not an opinion.
This is what we see every week when auditing company accounts.

What Google tells you:
“Your campaign can improve by 23%”.

What actually happens:

• more clicks

• lower sales

• more expenditure

• less control

This article is not politically correct. It's what nobody tells you about Google Ads. You might be interested to know how to run effective digital campaigns.

#1: Google doesn't optimise your business, it optimises your turnover

Google Ads is a revenue machine.

When you see this message:

“Apply recommendations automatically”.”

What it means is:

 “Let us spend your money.

Graph 1 - Actual targets (Google vs. advertiser)

 Structural conflict of interest.

Case study #1 - Spanish Ecommerce (real data)

Initial situation (no recommendations)

• Budget: 5.000 €/month

• Channel: Search

• CPC: €1.20

• Conversion: 3.8%

• CPA: €31

✅ cost-effective

Google recommends:

• Performance Max

• Display

• Broad match

• audience expansion

Outcome after implementing recommendations

• Budget: €5,000

• Average CPC: €0.62 ✅ (best according to Google)

• Conversion: 1.1% ❌

• CPA: 56 € ❌ ❌

Graph 2 - before vs after

 Actual result:

• +80% cost per conversion

• -42% sales

• +0 control

#2: The myth of the low CPC

Google sells you this:

“We have reduced your CPC.

But CPC is a manipulable metric.

Graph 3 - Search vs Display

 It mixes both and magic:
Average CPC = €1.4

But...

Graph 4 - conversion rate

 Conclusion:
Display serves to spend budget, not to sell.

Case Study #2 - B2B SaaS (Spain)

Initial situation

• Channel: Search

• CPC: €4.80

• Conversion: 6.2%

• CPL: €77

Google recommends:

• broad concordance

• keyword expansion

• PMax

Actual result

• Average CPC: 2.10 € ✅

• Conversion: 2.3% ❌

• CPL: 91 € ❌ ❌

Graph 5 - leads vs quality

 Insight: more leads ≠ more sales.

#3: Google mixes high and low intent traffic

Google Ads puts it all together in the same report.

Graph 6 - purchase intention

But Google shows it to you as a single campaign.

Case study #3 - local business (services)

Actual data

Before:

• 120 leads/month

• 35% valid leads

• CPA: €18

After recommendations:

• 260 leads/month ✅

• 9% valid leads ❌

• Actual CPA: €49 ❌

Graph 7 - actual leads vs spam

 Conclusion:
Google optimises volume, not value.

#4: Performance Max is a black box

Google doesn't tell you:

• where your ads appear

• which keywords convert

• which audiences work

Graph 8 - transparency

More automation = less control.

#5: The recommendations are designed to spend more

The most common recommendations:

• ✅ add Display

• ✅ broadening concordance

• ✅ upload quotes

• ✅ activate PMax

• ✅ expand locations

 By chance? No.

What the experts do (what Google won't tell you)

Real strategy

1. Separate Search, Display and PMax

2. Limit broad match

3. Measuring lead quality

4. Ignore the “optimisation score”.”

5. Control automation

6. Prioritise intention

Graph 9 - actual strategy vs Google

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Conclusion 

Google Ads recommendations are not bad by definition, but they are designed to benefit Google.

The key is:

• analyse each suggestion

• prioritising profitability

• control automation

• measuring the quality of conversions

   If you want to improve your Google Ads campaigns, You need a data-driven strategy, not automatic recommendations.

 If you apply all the Google Ads recommendations, you are not optimising your campaigns.

You are optimising your Google search results.

The difference between losing money and scaling up sales is simple:

Google optimises for Google.
You should optimise for your business.

If you are managing your own Google Ads campaigns and you find that you are not getting the results you want, you can find out more about how to use Google Ads in the Eiji Group Agency we have a team specialised in the management and optimisation of Google Ads campaigns.