However, if your ads are showing up for the wrong search terms (eg, the search intent is wrong), people might click on your ads, but they certainly won’t convert.

This makes the Search Terms report a key source of insight into the efficiency your ad spend.

The more money waste on search terms that don’t convert, the less effective your ad spend is. Conversely, a well-managed Google Ads budget will be primarily spent on search terms that produce conversions.

The question is, what percentage of ad spend actual goes towards search terms that convert?

Wasted Ad Spend

Obviously, you can only analyze ad spend efficiency with quality tracking, so the following results are pulled from those accounts with decent conversion tracking in place.