The Truth About Google Ads Smart Campaigns: Why They Don’t Work for Local Businesses in the US and What to Use Instead
Google Ads Smart campaigns, formerly known as AdWords Express, promise easy setup but hide significant drawbacks for businesses, leading to inefficient budget spending and attracting non-target customers.
Contents
What is a Smart campaign in Google Ads
Smart campaign interface
A Smart campaign in Google Ads is a simplified advertising tool, formerly known as AdWords Express. It features a highly simplified interface with basic metrics: impressions, clicks, Local Actions, and calls. The interface is designed for users without specialized knowledge, enabling them to launch ads independently. The system only displays some search terms and sample ads that users see.
Important: A Smart campaign is not the same as Performance Max. A Smart campaign is specifically the tool that was previously called AdWords Express.
Where ads are shown
With Smart campaigns, it’s impossible to control ad placements. Google displays ads everywhere it possibly can:
- In Google search results
- On Google Maps
- On third-party Google partner sites
- On YouTube
- On third-party video platforms
In other words: “Everywhere ads can possibly be placed.”
Problems
Google “doesn’t understand” what our business is or who we need
Google often uses general industry data instead of business-specific data. For example, if you have a plumbing company that serves only commercial clients, ads will still be shown across the entire market, including residential customers. Given that residential demand constitutes 60-80% in the B2C sector, you will receive numerous unqualified leads.
The main goal is promoting our GMB profile
Smart campaigns are primarily designed to promote the Google Business Profile (formerly Google My Business). Google optimizes for user interactions with your business listing — clicks on the “call,” “visit website,” and “get directions” buttons.
No conversions from the website, let alone from CRM
If conversion goals are not set up on your website or CRM integration is missing, Google cannot evaluate the true ad performance and only optimizes for interactions with the GBP profile. Consequently, the system doesn’t understand how effective the advertising truly is for your business.
There’s practically nothing to manage or optimize
Smart campaigns offer minimal control options. If you want to address specific nuances or make adjustments, this capability is simply not available in most cases. Such capabilities are not provided by Google within this campaign type.
If the budget is wasted, it’s solely our problem
The Google system is not designed to optimize your ad budget efficiency. If your advertising doesn’t yield the desired results, the responsibility lies with the advertiser, not the platform. Inefficient budget spending falls entirely on you. Google is interested in getting paid, not in the return on investment (ROI) of your ads on Google.
Google managers like setting them up for “newbies”
Smart campaigns are often recommended by Google managers who introduce themselves as strategists or assistants. In reality, they are sales representatives whose goal is to quickly launch ads and drive up your ad spend. Their KPIs are measured by the number of clients onboarded, not by advertising performance.
Google specifically created Smart campaigns, in part, for these managers, enabling them to rapidly launch ads for numerous clients and thus boost their performance indicators.
Google employees follow an internal checklist without delving into the specifics of the business. These managers handle large client portfolios and are not invested in long-term results. They have high turnover: they might launch ads for you today, and for 50 other companies next week.
After the campaign launch, Google managers begin suggesting budget increases, appealing to metrics such as low CTR or missed opportunities. They start insisting on increasing the budget, saying:
“Your CTR is low,”
“You’re losing customers,”
“You absolutely must increase the budget.”
Meanwhile, they fail to mention that this is simply so that Google can earn more.
What to do
Launch LSA
If you lack in-house expertise, try launching Local Service Ads (LSA), also known as Google Guaranteed. This is a specialized tool for generating leads for local businesses. If you don’t have a specialist you trust to set up comprehensive ad campaigns, LSA can be a good alternative.
Focus on organic promotion of the GMB profile
Actively manage your Google My Business profile:
- Collect and respond to reviews
- Add photos and videos
- Promptly respond to negative comments
Organic GMB promotion can provide a steady stream of customers without ad spend. You can also get customers and leads from there.
Launch your own comprehensive campaigns in Google Ads
If you have a specialist or in-house expertise, the optimal solution is to create fully controllable ad campaigns in Google Ads. This allows tailoring targeting to your business specifics and generating qualified leads for your US-based local business.
If Smart campaigns aren’t working for you — that’s normal, don’t worry. If they are working effectively, it’s more likely the exception rather than the rule.
Conclusion
Smart campaigns in Google Ads have significant limitations: imprecise targeting, minimal controls, and a focus on the GBP profile instead of conversions. Effective alternatives include Local Service Ads, organic GBP promotion, and setting up comprehensive ad campaigns tailored to business specifics.
Saveliy Kamenev
Marketing specialist at Lira Agency. I create useful and engaging content for the audience. In my free time, I explore marketing, psychology, and new growth opportunities.
