Recommending You Spend Less

/in /by

Has your agency ever suggested that you spend less on Google Ads? If you’re laughing right now, I think we both know the answer.

Most agencies are paid as a percentage of ad spend. Which means the more you spend, the more they make. So naturally, the conversation tends to focus on growth – more budget, more campaigns, more reach.

But here’s the problem: More spend doesn’t always mean better results.

An Incentive Problem

If your agency makes more money when you spend more, it becomes very hard for them to recommend pulling back, even when it’s the right move for your business. That’s not always intentional, but it does shape behavior.

And over time, it can lead to inefficient spending that no one is motivated to fix.

A Different Approach

When we first met with a credit union, they were spending about $15,000 per month across seven locations. Three of those locations were in the same town, and all were within two counties.

They didn’t come to us because of budget concerns. They came to us because their agency was unresponsive. 

When we reviewed the account, something else became clear: they were overspending for the market they were in. There simply wasn’t enough qualified demand to justify that level of budget.

So we made a recommendation most agencies wouldn’t. We told them to cut their Google Ads spend in half – from $15,000 to $7,000. They were thrilled, and a little surprised.

We didn’t just reduce the budget, we refocused it.

  • Tighter targeting
  • Better alignment with high-intent searches
  • Cleaner campaign structure

The result? They generated just as many marketing-qualified leads at half the spend.

A Natural Ceiling

Google Ads isn’t about how much you spend. It’s about how efficiently you turn that spend into results.

There’s a natural ceiling in every market based on search volume, competition, and intent. Once you push past it, you don’t get more of the right leads. You just pay more for each lead, or worse yet, you pay for lousy ones.

Good management isn’t about pushing spend higher. It’s about finding, and respecting, the ceiling for your market.

Real Partnership

If an agency wants a long-term relationship with a client, they have to be willing to say: “You should spend less.” Even when it means less revenue in the short term.

Because what you gain is trust, efficiency, and a client who knows you’re looking out for their business…not just your own.

If your current agency has never suggested reducing your budget, it’s worth asking: Are you truly optimized… or spending more than you need to?