The algorithm learns. Just not the right things. Google Ads Smart Bidding optimizes for conversions, which sounds logical. The crucial question is: What actually counts as a conversion in your account?
The pattern: Everything counts as a conversion
In most of the accounts I take over: everything. Page views, newsletter sign-ups, PDF downloads, button clicks. Fifteen, twenty, sometimes fifty conversion actions, all active, all equally important in terms of the optimization goal. The algorithm gets the signal: more of this. So it delivers more of it. Cheap, reliable. Except: they're not customers.
Why the algorithm is not to blame
If you don't give the algorithm a clear goal, you'll get an arbitrary one. And you'll still pay the full price.
The error isn't in the algorithm; it's doing its job. The error lies in the setup. Micro-conversions aren't the problem; I use them myself in almost every account. But they must be used strategically: as secondary signals that provide the system with additional learning material, not as optimization goals on par with the actual request.
Here's how to clean up
Three steps. First: define which action actually generates revenue, usually a qualified lead request. Second: use only this as your primary conversion goal, and set everything else to secondary or disable it. Third: after the change, give the system two to three weeks to learn before evaluating its performance. The cleanup itself often takes less than an hour. The impact on budget allocation is usually the single biggest improvement possible in such an account.
Frequently Asked Questions
How can I tell if my account has this problem?
Open the conversion action overview in Google Ads. If more than a handful of actions are actively marked as optimization goals, including things like page views or button clicks, your budget is very likely being optimized for the wrong thing.
Should I delete old conversion actions or just deactivate them?
Deactivating it or setting it to secondary is sufficient. This way, historical data is retained without the action further influencing bidding behavior.
Does performance drop after cleaning up?
The reported conversion rate may drop in the short term because you're finally only counting genuine inquiries. This isn't a slump, but rather the first honest look at actual performance.
What is the difference between micro-conversions and other strategies?
Micro-conversions are valuable as deliberately set secondary learning signals, especially with low conversion volumes. The problem arises when they are uncontrolled and run as primary goals, and the algorithm treats them like genuine queries.
I have described the opposite problem, too few signals instead of too many false ones, here: Why Google Ads Smart Bidding often doesn't work in B2B. Or in Analysis discussion look directly into your account.