Google Ads Downturn Playbook: Cut Waste, Maximise Payback

People ask me two things when budgets get squeezed: should we keep spending on ads, and why keep going if every pound counts? The short answer: keep the parts of Google Ads that pay back and cut the waste. Then shift budget to what already converts. I look first at CPC (cost per click) and CPA (cost per acquisition). I also check a simple payback window to decide what stays live and what pauses this week.

Should you keep running Google Ads during an economic squeeze?

Yes, keep or reshape spend when the numbers work and you can fulfil. Hold Google Ads if your margin after ad spend holds, your payback window (how long it takes ad spend to earn itself back) fits the cash plan, and Search impression share on your brand campaigns stays stable. If cash or capacity is tight, scale to proven exact queries and protect brand while you fix constraints.

How do you decide in 10 minutes to cut or keep Google Ads spend?

Start with Demand: look at branded search volume and conversion trends and sense‑check lead quality. Then review Margins and payback: MER (marketing efficiency ratio, revenue divided by ad spend), the payback window (how long it takes ad spend to earn itself back), and margin after ad spend. Finally, confirm Operations: stock, service capacity, and sales coverage. Ask yourself: if we paused all tests today, which two exact queries still pay back? If payback slips or fulfilment tightens, we reduce to brand plus two proven exact queries and pause tests.

What should you change in Google Ads when budgets are tight?

Bidding: Start with value. Use Maximise conversion value (tROAS) on campaigns with reliable values. Create a 50/50 split in Experiments, run it for 7 full days, then roll out only if payback and qualified lead rate hold. If you lack reliable values, use Maximise conversions with a target CPA on stable conversion actions.

Keywords: Protect brand and check Search impression share on your brand campaigns and Search lost IS (budget). Tighten match types on non‑brand that already converts. Expand exact where it already pays back. Harvest the Search terms report every Friday; promote winners to exact and add account‑level negatives for low‑margin phrases.

Budgets: Cap experiments. When cash tightens, we cut experiments first, then push budget to profitable campaigns and ring‑fence remarketing.

Audiences: Layer in in‑market and Customer Match lists. Bid up proven segments (repeat buyers, sales‑qualified leads (SQLs)) and cap exposure to low‑LTV cohorts.

Creatives (RSAs): Speak to value and proof. Reduce risk with a clear guarantee where appropriate. Test two new lines and keep one control.

Landing pages: Keep one primary CTA above the fold. Place proof within three sentences and test three‑field forms before longer ones. Improve load speed. On mobile, aim for sub‑2.5s LCP and keep layout shifts minimal. If you need depth, link to your Landing Pages for Paid Advertising guide.

Tracking: Verify conversion actions in Tools & settings → Measurement → Conversions. Enable Enhanced Conversions for leads. Import offline outcomes by GCLID so bidding sees real revenue, not just form fills. If invalid clicks stay high, add a generic click‑fraud protection layer that creates IP exclusions automatically. Keep Google’s own invalid‑click detection on and audit the Invalid clicks column monthly.

Attribution: Tag offers with UTMs, then join to CRM by email or GCLID so you can report pipeline from Google Ads beyond last click, alongside content‑assisted impact.

When should you cut, hold or increase Google Ads?

Base your decision on cash, capacity, and demand. Cut when fulfilment or cash is at risk, or margins fail your CAC payback threshold. Hold or reshape when demand exists but costs rose. Focus on proven intent and remarketing. Increase when competitors pull back, CPCs soften, and MER improves on current spend. Increase only when Auction Insights indicates competitor overlap/IS is falling and the MER trend improves.

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Where can you find efficiency in Google Ads right now?

Start with levers that cut waste without hurting demand.

In Google Ads, tighten locations and schedule to proven windows.
Filter search terms for waste and add negatives.
Push budget to your best intent groups or tight themes.
Use Customer Match and RLSA.
Check lead quality by device, then review performance.
Use account‑level negatives to shut off low‑margin terms.
Filter invalid traffic. Monitor Google’s Invalid clicks column. If patterns persist, add a click‑fraud protection layer to auto‑exclude abusive IPs and VPN/proxy traffic, then review logs weekly.

This is our Monday routine on every account.

What should you measure so finance stays onside?

Report MER and CAC payback first, then qualified lead rate, cost per qualified lead, and paid pipeline. Split brand and non‑brand so finance sees mix changes. Cadence: weekly diagnostics and a monthly board view that shows wins and what you will cut next if results slip. Enhanced Conversions for leads gave us a clearer payback view, so bid strategies stopped over‑valuing raw form fills. Ask finance: what payback window are you comfortable with this quarter?

Which Google Ads playbook fits your situation?

B2B lead gen: Protect brand, use exact match on high‑intent, keep remarketing live, import offline conversions, and try value‑based bidding where you have enough data.

E‑commerce: Use Performance Max with ROAS guardrails and clean product feeds. Exclude low‑margin products via item ID exclusions or listing groups, and apply seasonality adjustments during known dips. We also exclude sub‑30% margin products and cap new feed experiments until ROAS stabilises.

Local services: Tighten service areas, use call assets, schedule by response hours, and review call recordings for quality. We narrow the service area, turn on call assets, and run ads only when someone can pick up.

How should SEO and Google Ads work together when budgets are tight?

Share search terms so SEO can fill content gaps. Use high‑intent organic pages as landing pages if they convert faster. Feed high‑performing paid terms into new content briefs within 7 days so organic and paid inform each other. Send negatives both ways to reduce waste and lift quality.

What risks and mistakes should you avoid in an economic squeeze?

Pausing brand queries while competitors stay live.
Expanding broad match without a weekly negatives habit.
High budgets on Performance Max with mixed margins and no exclusions.
Counting all form fills as conversions rather than qualified outcomes.
Experiments running across unproven campaigns.
Starving your best converting hours or regions.

Bringing it together: a downturn‑ready plan for Google Ads

You do not need blanket cuts; you need control. Keep or reshape spend when margin after ad spend holds and your payback window fits the cash plan while Search impression share on your brand campaigns stays stable. If a signal slips, scale to proven exact queries and protect brand. Pause tests until payback recovers. The changes above give you a safe sequence. Set bidding to value where data allows, tighten keywords and budgets, use Customer Match, fix landing‑page friction, and verify tracking.

Two practical hurdles usually block progress. First, data quality: unreliable conversion values or missing offline outcomes make tROAS and tCPA noisy. Fix Enhanced Conversions for leads and imports before you scale. Second, margin mix: Performance Max and broad match can chase low‑margin revenue unless you add exclusions and account‑level negatives.

Why Iconic? We plan from cash and payback, then manage accounts with operator discipline. We review Auction Insights, search terms and conversions every week, and we link Ads and SEO so both channels share learnings. You get clear recommendations, change logs you can track, and a cadence finance understands.

Pressure‑test your Google Ads for an economic squeeze. Book a Free SEO Audit.

Google Ads in a Downturn: Should You Run Paid Ads During an Economic Squeeze?