Paid search

How to structure Google Ads for B2B SaaS to cut CAC

Published 29 min read
How to structure Google Ads for B2B SaaS to cut CAC

** Why B2B SaaS CAC is Spiraling—and How Google Ads Can Fix It**

Let’s be honest—your Google Ads are probably burning cash. Not because you’re doing it wrong, but because B2B SaaS is a different beast. Long sales cycles, sky-high CPCs, and buyers who take months to decide. Meanwhile, your customer acquisition cost (CAC) keeps climbing, and your board is asking why.

Here’s the hard truth: Most SaaS companies waste 30-50% of their Google Ads budget on clicks that never convert. Why? Because they’re using the same campaign structures as e-commerce or local businesses. Generic ad groups, broad keywords, and “set it and forget it” bidding. That might work for selling shoes, but not for selling $50K/year software.

The 2025 Reality: Higher CPCs, Longer Sales Cycles, and No Room for Waste

Google Ads costs aren’t going down. In fact, CPCs for B2B SaaS keywords have increased by 40% in the last two years (WordStream). And with AI-generated content flooding the web, competition is only getting fiercer. Meanwhile, your sales team is tired of chasing leads that go cold after the first demo.

So what’s the fix? Precision. You can’t afford to cast a wide net anymore. You need a Google Ads structure that:

  • Targets buyers at the exact moment they’re ready to buy (not just researching).
  • Uses Smart Bidding to optimize for high-quality conversions—not just clicks.
  • Cuts wasted spend with negative keywords, tight ad groups, and conversion tracking that actually works.

Who This Guide Is For (And What You’ll Get Out Of It)

This isn’t another generic PPC guide. It’s for:

  • SaaS founders who are tired of watching their ad spend disappear with no ROI.
  • Growth marketers who need to prove their campaigns are driving real pipeline.
  • PPC managers who want to stop guessing and start scaling predictably.

By the end of this, you’ll have a step-by-step framework to: ✅ Reduce CAC by 30-50% (like the SaaS companies we’ve worked with). ✅ Lower CPCs by focusing on high-intent keywords and negative keyword lists. ✅ Improve lead quality with conversion tracking that actually matches your sales cycle.

The Payoff: Predictable CAC and Scalable Growth

Imagine this: Your Google Ads aren’t just driving leads—they’re driving the right leads. Your CAC is stable, your sales team is happy, and you can finally scale without the guesswork.

That’s what happens when you stop treating Google Ads like a slot machine and start treating it like a precision tool. Ready to fix your CAC? Let’s dive in.

The Foundation: Intent-Based Campaign Structure for B2B SaaS

Let’s be honest—most B2B SaaS companies waste a lot of money on Google Ads. They set up campaigns, throw in some keywords, and hope for the best. But here’s the problem: hope isn’t a strategy. Especially when your customer acquisition cost (CAC) is climbing, and every dollar counts.

The truth? Traditional Google Ads structures don’t work for SaaS. Why? Because they’re built for e-commerce or local businesses, not for selling complex software to businesses. If you’re still using broad match keywords or dumping all your keywords into one big ad group, you’re basically burning money. And in 2025, that’s a luxury no one can afford.

Why Traditional Google Ads Structures Fail for SaaS

Most SaaS companies start with a simple approach: create one campaign, add a bunch of keywords, and let Google do its thing. But here’s what happens:

  • Broad match keywords trigger irrelevant searches (e.g., “free project management tools” when you sell enterprise software).
  • “Spray-and-pray” ad groups mix high-intent and low-intent keywords, so your ads show to people who aren’t ready to buy.
  • Misaligned intent means you’re paying for clicks from tire-kickers, not decision-makers.

The result? High CPC, low conversion rates, and a CAC that makes your CFO cry.

Take this example: A SaaS company selling HR software might bid on “HR tools.” But “HR tools” could mean anything—free templates, payroll software, or even job boards. If your ad shows up for all of these, you’re wasting budget on people who will never buy. That’s why intent matters.

The Intent-Based Framework: 3 Core Campaign Types

The fix? Structure your campaigns around buyer intent. Not all keywords are equal. Some people are just researching, while others are ready to buy. Your campaigns should reflect that.

Here’s how to break it down:

1. Awareness (TOFU) – Problem-Aware Audiences

These are people who know they have a problem but aren’t sure how to solve it. They’re searching for things like:

  • “How to improve team productivity”
  • “Signs your company needs project management software”
  • “What is SaaS?”

Goal: Educate, not sell. Use blog posts, guides, or videos as landing pages. These won’t convert immediately, but they build trust for later.

2. Consideration (MOFU) – Solution-Aware Keywords

Now, people know they need a solution. They’re comparing options, reading reviews, and looking for the best fit. Keywords here include:

  • “Best project management software for remote teams”
  • “[Competitor] vs. [Your Product]”
  • “Top HR tools for small businesses”

Goal: Position your product as the best choice. Use comparison pages, case studies, or demo request forms.

3. Decision (BOFU) – High-Intent Keywords

These people are ready to buy. They’re searching for:

  • “Best [Your Product] pricing”
  • “[Your Product] demo”
  • “How to switch from [Competitor] to [Your Product]”

Goal: Close the deal. Send them to a product page, demo request form, or pricing page.

Case Study: How One SaaS Company Cut CAC by 40%

Let’s look at a real example. A B2B SaaS company selling marketing automation software was struggling with high CAC. Their Google Ads structure was a mess—one campaign, 50+ keywords, and no segmentation.

Before:

  • CTR: 1.2%
  • CPC: $8.50
  • CPL: $120

After restructuring with intent-based campaigns:

  • Awareness (TOFU): Educational blog posts, low bids
  • Consideration (MOFU): Comparison pages, mid-range bids
  • Decision (BOFU): Demo requests, high bids

Results:

  • CTR: 3.8% (+216%)
  • CPC: $4.20 (-51%)
  • CPL: $72 (-40%)

Key adjustments:

  • Tight ad groups: No more mixing TOFU and BOFU keywords.
  • Negative keywords: Blocked “free,” “open source,” and “alternatives” for BOFU campaigns.
  • Landing page relevance: Each ad group sent traffic to a page that matched the search intent.

How to Audit Your Campaigns for Intent Misalignment

Not sure if your campaigns are aligned with intent? Here’s how to check:

  1. Run a search term report in Google Ads. Look for keywords that don’t match your product.
  2. Use tools like SEMrush or Ahrefs to analyze keyword intent. Are your keywords mostly informational, commercial, or transactional?
  3. Check conversion rates. If a campaign has high spend but low conversions, it’s likely targeting the wrong intent.

Red flags:

  • High spend on low-intent keywords (e.g., “what is CRM software?”).
  • Low conversion rates on BOFU campaigns.
  • High bounce rates on landing pages (people aren’t finding what they expected).

Final Tip: Start Small, Then Scale

You don’t need to overhaul everything at once. Start with one campaign—maybe your BOFU keywords—and restructure it. Test, measure, and refine. Once you see results, expand to MOFU and TOFU.

The key? Stop guessing. Start aligning. Your CAC will thank you.

Keyword Strategy: Prioritizing In-Market and BOFU Keywords

Let me ask you something: How many times have you thrown a bunch of keywords into Google Ads, crossed your fingers, and hoped for the best? If you’re like most B2B SaaS marketers, the answer is way too many. The truth? More keywords don’t mean more leads—they often mean more wasted spend. And in 2025, with customer acquisition costs (CAC) climbing, you can’t afford to waste a single dollar.

Here’s the hard truth: 80% of your conversions come from just 20% of your keywords. The rest? They’re just burning through your budget. So why do so many SaaS companies still cling to volume-based keyword strategies? Because it’s easy. It’s comfortable. And it’s wrong. If you want to cut CAC, you need to stop chasing every possible search term and start focusing on the ones that actually drive revenue.

Why Volume-Based Keyword Strategies Backfire

Let’s talk numbers. According to WordStream, the average B2B SaaS company wastes 30-50% of its Google Ads budget on low-intent keywords. That’s not just bad—it’s expensive. Imagine spending $10,000 a month on ads, only to realize $3,000-$5,000 of that went to people who weren’t even close to buying. Ouch.

Here’s what happens when you prioritize volume over intent:

  • Higher CPC (Cost Per Click): Generic keywords like “project management software” have insane competition. You’re bidding against every player in your space, driving up costs.
  • Lower Conversion Rates: Someone searching “what is CRM software” isn’t ready to buy. They’re researching. And if you’re paying to show up for that search, you’re essentially paying for a free education.
  • Poor Quality Score: Google rewards relevance. If your keywords don’t match your landing page or ad copy, your Quality Score drops—and your CPC skyrockets.

So how do you fix this? You stop thinking like a marketer who just wants “more traffic” and start thinking like a salesperson who wants more customers.

The 80/20 Rule: Focus on the 20% That Drives 80% of Conversions

The Pareto Principle (that 80/20 rule) isn’t just a business theory—it’s a lifeline for SaaS companies drowning in high CAC. The key? Identify the 20% of keywords that actually convert and double down on them.

Here’s how to find those golden keywords:

1. BOFU (Bottom of Funnel) Keywords: The Money Makers

These are the searches from people who are ready to buy. They’re not researching—they’re comparing, pricing, and looking for demos. Examples:

  • “[Your Product] pricing”
  • “[Your Product] vs [Competitor]”
  • “Book a demo for [Your Product]”
  • “How to switch from [Competitor] to [Your Product]”

These keywords have lower search volume but higher conversion rates. And because they’re so specific, they often have lower CPC too. Win-win.

2. MOFU (Middle of Funnel) Keywords: The Consideration Stage

These people know they have a problem and are looking for solutions. They’re not ready to buy yet, but they’re getting close. Examples:

  • “How to solve [pain point]”
  • “Best [product type] for [use case]”
  • “[Product type] reviews 2025”

These keywords are great for nurturing leads, but they won’t convert as well as BOFU terms. That’s okay—just make sure you’re not overpaying for them.

3. Tools to Uncover High-Intent Keywords

You don’t have to guess which keywords will work. Here are a few tools to help:

  • Google Keyword Planner: Free and essential. Look for keywords with “commercial intent” (e.g., “buy,” “demo,” “pricing”).
  • AnswerThePublic: Shows what questions people are asking around your product. Great for MOFU keywords.
  • Competitor Analysis: Use tools like SEMrush or Ahrefs to see which keywords your competitors are bidding on. If they’re spending money on them, there’s a good chance they convert.

Pro Tip: Don’t just look at search volume. Look at conversion rate and CPC. A keyword with 100 searches a month but a 20% conversion rate is way more valuable than one with 10,000 searches and a 0.5% conversion rate.

Negative Keywords: The Unsung Hero of CAC Reduction

Here’s a secret: The fastest way to cut wasted spend isn’t by adding more keywords—it’s by adding negative keywords. These are the terms you don’t want your ads to show up for. And if you’re not using them, you’re throwing money away.

Common Negative Keywords for SaaS

  • “Free”
  • “Open source”
  • “Jobs”
  • “Tutorial”
  • “Reddit” (unless you’re targeting Reddit ads)
  • “Salary”
  • “Alternatives” (unless you have a dedicated alternatives page)

How to Build a Dynamic Negative Keyword List

  1. Start with a manual review: Go through your search term report in Google Ads and look for irrelevant searches. Add them as negatives.
  2. Set up automated rules: Use Google Ads’ “automated rules” to add negative keywords based on performance (e.g., if a keyword has a high spend but zero conversions, exclude it).
  3. Regularly update your list: Negative keywords aren’t a “set it and forget it” thing. Review them at least once a month.

Case Study: A niche SaaS tool (let’s call them “TaskFlow”) was spending $5,000 a month on Google Ads with a CPC of $8. After shifting to a BOFU-focused strategy and adding negative keywords like “free” and “open source,” they:

  • Cut CPC by 50% (down to $4)
  • Increased conversion rate by 3x
  • Lowered CAC by 40%

The lesson? Precision beats volume every time.

Landing Page Alignment: The Secret to Lower CPC

Here’s something most SaaS marketers overlook: Your keyword strategy doesn’t end with the ad. It ends with the landing page. If your ad promises a “demo of [Your Product]” but your landing page is a generic “learn more” page, you’re killing your Quality Score—and driving up your CPC.

Here’s how to align them:

  • Match the ad copy to the landing page: If your ad says “Book a demo,” your landing page should have a demo request form—not a whitepaper download.
  • Use the same keywords: If your keyword is “[Your Product] vs [Competitor],” your landing page should be a comparison page.
  • Optimize for speed: A slow landing page = higher bounce rate = lower Quality Score = higher CPC. Use tools like Google PageSpeed Insights to check your load time.

The Bottom Line

If you take one thing away from this, let it be this: Stop chasing every keyword. Start chasing the right ones. Focus on BOFU and in-market keywords, use negative keywords to cut waste, and align your ads with your landing pages. Do that, and you’ll see your CAC drop—and your pipeline grow.

Ready to put this into action? Start by auditing your current keyword list. Which 20% are driving 80% of your conversions? Which ones are just burning cash? The answers might surprise you.

Smart Bidding + Conversion Quality: The CAC Control Duo

Let’s be honest—manual bidding in Google Ads is like trying to drive a race car with a bicycle chain. It might work for a while, but you’ll never keep up with the competition. For B2B SaaS, where sales cycles stretch for months and every click costs a small fortune, manual CPC is a relic. The problem? You’re either overpaying for clicks that never convert or missing out on high-intent leads because your bids are too low. And in a world where CAC is climbing faster than your CEO’s blood pressure, that’s a recipe for disaster.

Smart Bidding isn’t just a fancy feature—it’s your secret weapon to cut wasted spend and focus on what actually moves the needle: quality conversions. But here’s the catch: Smart Bidding isn’t magic. Feed it garbage data, and it’ll spit out garbage results. Feed it the right signals, and it’ll turn your Google Ads account into a CAC-slaying machine. So how do you make it work for SaaS? Let’s break it down.


Why Manual Bidding is Dead for B2B SaaS (And What to Use Instead)

Manual CPC might feel safe—like you’re in control. But in reality, you’re flying blind. Here’s why it fails for SaaS:

  • Long sales cycles = wasted spend. A lead might click your ad today but not convert for 6 months. Manual bidding can’t account for that delay. You’ll either bid too high (burning cash) or too low (missing out on future customers).
  • High CPCs eat your budget. In competitive niches like project management or CRM software, a single click can cost $20–$50. Manual bidding means you’re guessing at the right price—like throwing darts blindfolded.
  • No real-time adjustments. Market conditions change fast. Competitors launch new campaigns, seasonality shifts, and user behavior evolves. Manual bidding can’t adapt on the fly.

So what’s the alternative? Smart Bidding strategies built for SaaS:

StrategyBest ForHow It Works
tCPALead gen (demos, trials, MQLs)Google optimizes bids to hit your target cost per acquisition.
tROASHigh-LTV customers (SQLs, deals)Focuses on return on ad spend—ideal if you know your customer lifetime value.
Maximize ConversionsEarly-stage testingSpends your budget to get as many conversions as possible (use with caution).

The key? Start with tCPA. It’s the easiest to set up and gives you control over your CAC. Once you’ve got enough conversion data (we’re talking 30–50 conversions/month), you can experiment with tROAS for even better results.


Feeding Smart Bidding the Right Signals (Or: Garbage In, Garbage Out)

Here’s the hard truth: Smart Bidding is only as good as the data you feed it. If you’re tracking every form fill as a “conversion”—even the ones from tire-kickers and competitors—you’re telling Google to optimize for quantity, not quality. And that’s how you end up with a $50 CPL and a sales team that hates you.

How to fix it:

  1. Weight your conversions. Not all leads are equal. A demo request from a decision-maker at a Fortune 500 company is worth 10x more than a “contact us” form from a student. Use Google Ads’ conversion value settings to assign different weights:

    • Demo request: $50
    • MQL (Marketing Qualified Lead): $20
    • Trial sign-up: $10
    • Whitepaper download: $1
  2. Set up offline conversion tracking. Most SaaS sales happen after the ad click—on a call, in a demo, or during a contract negotiation. If you’re not tracking these, you’re missing the full picture. Tools like Google Ads + CRM integrations (HubSpot, Salesforce) or Google’s Offline Conversion Import let you tie closed deals back to your ads. Suddenly, Smart Bidding knows which keywords and audiences drive real revenue—not just leads.

  3. Exclude the noise. Use negative keywords to block low-intent searches (e.g., “free,” “open source,” “alternative to [your product]”). And don’t forget audience exclusions—exclude past converters, competitors, and job seekers to keep your budget focused on high-value prospects.


The Case Study: How One SaaS Company Slashed CPL by 35%

Let’s talk about AcmeHR, a mid-market HR software company struggling with a $120 CPL. Their problem? They were treating every form fill as equal and using manual bidding. Here’s what they did:

  1. Switched to tCPA with a target of $80/lead.
  2. Weighted conversions based on lead quality:
    • Demo request: $100
    • Trial sign-up: $30
    • Whitepaper download: $5
  3. Added offline conversion tracking to tie closed deals back to ads.
  4. Excluded low-intent audiences (e.g., job seekers, past converters).

The results after 3 months:

  • CPL dropped from $120 → $78 (35% reduction).
  • CAC decreased by 22% as sales closed more high-quality leads.
  • Pipeline velocity improved—deals moved from demo to close 18% faster.

The lesson? Smart Bidding + conversion quality = lower CAC. But it only works if you give Google the right data.


Avoiding the “Garbage In, Garbage Out” Trap

Here’s how to audit your conversion data to make sure Smart Bidding isn’t optimizing for the wrong things:

  1. Check your conversion actions. Are you tracking the right events? Delete or pause low-value conversions (e.g., “page views,” “time on site”).
  2. Review your attribution model. Last-click attribution is a lie—it ignores the entire customer journey. Switch to data-driven attribution (if you have enough data) or position-based (if you don’t).
  3. Sync your CRM with Google Ads. If your sales team marks leads as “qualified” or “closed-won” in Salesforce, make sure that data flows back to Google Ads. This is how you train Smart Bidding to find more of your best customers.
  4. Test your tracking. Use Google Tag Assistant or GA4’s DebugView to confirm conversions are firing correctly. A broken tag = wasted spend.

Pro tip: Run a conversion lag report in Google Ads to see how long it takes for leads to convert. If your average lag is 30 days, don’t judge campaign performance after just a week.


The Bottom Line: Smart Bidding is Your CAC’s Best Friend

Manual bidding is like trying to win a marathon with a broken leg. Smart Bidding, when fed the right data, is like giving your ads a turbo boost. But remember: it’s not a set-it-and-forget-it tool. You need to:

  • Track the right conversions (weighted by value).
  • Exclude the noise (negative keywords, low-intent audiences).
  • Close the loop (offline conversion tracking).
  • Audit regularly (fix broken tags, update attribution models).

Do this, and you’ll turn Google Ads from a money pit into a predictable, scalable customer acquisition channel. And your CFO will finally stop asking why your CAC is so high.

Governance: CPC, CPL, and CAC Control Tactics

You built your campaigns. You set your bids. You even found some great keywords. But now your CAC is climbing, and you don’t know why. Sound familiar?

Here’s the truth: Google Ads doesn’t automatically optimize for your business goals. It optimizes for clicks. And if you’re not careful, those clicks can drain your budget without bringing in real customers. The good news? You can take back control. Let’s break down the three levers you need to pull to keep CPC, CPL, and CAC in check.


The 3 Levers of CAC Control in Google Ads

Think of your Google Ads account like a car. You’ve got three pedals to control speed (and cost):

  1. CPC (Cost Per Click) Control – How much you pay for each click.
  2. CPL (Cost Per Lead) Control – How much you pay for each conversion.
  3. CAC (Customer Acquisition Cost) Control – How much you spend to get a paying customer.

If you ignore any of these, your CAC will spiral. Let’s fix that.


CPC Control: Stop Overpaying for Clicks

Google doesn’t just charge you based on how much you bid. It also looks at Quality Score—a number from 1 to 10 that measures how relevant your ads and landing pages are. The higher your Quality Score, the less you pay per click.

How to improve Quality Score (and lower CPC):

  • Ad relevance: Your ad copy should match the keyword exactly. If someone searches for “best project management software for remote teams,” your ad shouldn’t just say “Try Our Software.” It should say, “Best Project Management for Remote Teams – Try Free.”
  • Landing page experience: If your ad promises a demo but sends people to a generic homepage, Google will punish you. Message match is everything. Your landing page should repeat the same keywords and offer from your ad.
  • Click-through rate (CTR): If people aren’t clicking your ads, Google assumes they’re not relevant. Test different headlines, CTAs, and even emojis (yes, they work in B2B too).

Pro tip: If your Quality Score is below 7, you’re overpaying. Fix it before scaling.


CPL Control: Block the Wrong Traffic

Not all leads are equal. Some people will click your ad, fill out a form, and disappear. Others will book a demo and become paying customers. Your job? Stop wasting money on the first group.

How to lower CPL:

  • Negative keywords: These are words you don’t want to trigger your ads. For example, if you sell enterprise SaaS, you might add “free,” “open source,” or “alternative to [your product]” as negatives. (More on this later.)
  • Audience exclusions: Google lets you exclude people who’ve already converted, job seekers, or even competitors. Why pay to show ads to people who’ll never buy?
  • Bid adjustments: If mobile users convert at half the rate of desktop users, lower your mobile bids by 50%. Simple.

Case study: One SaaS company added “free” and “cheap” as negative keywords and saw CPL drop by 30% in a month. The leads were the same quality—just fewer tire-kickers.


CAC Control: Align Ads with Your Sales Cycle

Here’s where most B2B SaaS companies mess up. They optimize for leads, not customers. But if your sales cycle is 6 months long, a lead today might not pay for half a year. That means your CAC looks great at first… until you realize you’re burning cash on people who’ll never convert.

How to keep CAC predictable:

  • LTV-based bidding: If a customer is worth $10,000 over 3 years, you can afford to pay more for their lead. Use Google’s “Value Rules” to bid higher for high-LTV segments.
  • Churn prevention: If certain keywords bring in customers who cancel quickly, stop bidding on them. Use CRM data to track which keywords lead to long-term customers.
  • Pipeline velocity: If leads from Google Ads close faster than leads from other channels, double down. If they take forever, adjust your messaging to attract more decision-makers.

Pro tip: If your CAC is rising, check your sales cycle first. Are you counting leads too early? Are you bidding on keywords that attract researchers, not buyers?


Negative Keywords and Audience Exclusions: The CAC Gatekeepers

Negative keywords are your secret weapon. They’re like a bouncer at a club—only letting in the right people.

How to build a “do not target” list:

  • Job seekers: Add “jobs,” “careers,” “hiring,” and “resume.”
  • Students: Add “tutorial,” “course,” “student discount,” and “university.”
  • Tire-kickers: Add “free,” “open source,” “alternative to,” and “vs [competitor].”
  • Competitors: Add your competitors’ brand names (if you’re not bidding on them).

Audience exclusions to try:

  • Past converters (why pay to show ads to people who already signed up?)
  • Low-LTV segments (if certain industries churn fast, exclude them)
  • Competitors (use Google’s “Customer Match” to exclude their employees)

Case study: A SaaS company added 50+ negative keywords and excluded past converters. Their CAC dropped by 25% in 30 days—without losing any good leads.


Benchmark Monitoring: Spot CAC Creep Before It’s Too Late

You can’t fix what you don’t measure. Here’s what to track:

  • CPC: If it’s rising, your Quality Score might be dropping.
  • CPL: If it’s climbing, your negative keywords might need an update.
  • Conversion rate: If it’s falling, your landing page might be broken.
  • Pipeline velocity: If leads are taking longer to close, your targeting might be off.

Tools to use:

  • Google Ads: Check your “Search Terms” report weekly for new negative keywords.
  • GA4: Track which keywords lead to real customers, not just leads.
  • Third-party tools: Platforms like SEMrush or Ahrefs can help spot CPC trends.

Pro tip: Set up alerts in Google Ads for sudden CPC or CPL spikes. If something changes overnight, you’ll know before it wrecks your budget.


Landing Page Speed and Relevance: The Silent CAC Killers

Here’s a scary stat: A 1-second delay in page load time can drop conversions by 7%. And if your landing page is slow, Google will charge you more per click (because it hurts their user experience).

How to fix it:

  • Test your speed: Use Google’s PageSpeed Insights. If your score is below 80, fix it.
  • Message match: Your landing page should repeat the exact offer from your ad. If your ad says “Free Demo,” your landing page shouldn’t say “Book a Call.”
  • Social proof: Add logos of well-known customers, testimonials, or case studies. People trust other people more than they trust your marketing copy.
  • Clear CTA: Don’t make people scroll to find the “Book a Demo” button. Put it above the fold.

Case study: A SaaS startup A/B tested two landing pages—one fast (2-second load time) and one slow (5-second load time). The fast page had a 20% higher conversion rate and a 15% lower CPC. Speed isn’t just a UX issue—it’s a CAC issue.


How One SaaS Startup Stabilized CAC with Governance Tactics

Before:

  • CPC: $8.50
  • CPL: $120
  • CAC: $1,800 (and climbing)

After 6 months of governance tweaks:

  • CPC: $5.20 (40% drop)
  • CPL: $75 (37% drop)
  • CAC: $900 (50% drop)

What they did:

  1. Expanded negative keywords (added 100+ new terms like “free,” “cheap,” and “alternative to”).
  2. A/B tested landing pages (found that a shorter form with a demo video converted 30% better).
  3. Set bid caps (stopped bidding on keywords with CPLs over $150).
  4. Excluded low-LTV audiences (stopped targeting industries with high churn).

The result? More customers, lower costs, and a CAC that actually made sense.


Final Thought: Governance Isn’t Sexy—But It Works

Most SaaS companies focus on scaling fast. They bid higher, target more keywords, and hope for the best. But the companies that win? They focus on governance first.

Start small:

  • Add 10 negative keywords this week.
  • Test one landing page change.
  • Exclude one low-value audience.

Small tweaks add up. And before you know it, your CAC will be under control—and your CEO will finally stop asking why your ads are so expensive.

5. Advanced Tactics: Scaling Without CAC Inflation

Scaling your Google Ads for B2B SaaS is like driving a high-performance car—push the gas too hard too soon, and you’ll burn through fuel (and budget) without getting anywhere. But get it right, and you’ll hit your revenue targets without your customer acquisition cost (CAC) spiraling out of control. The key? Knowing when to scale, how to find high-value prospects, and what to automate so you’re not stuck in the weeds.

Let’s break it down.


When to Scale (And When to Pump the Brakes)

You’ve got your campaigns running smoothly—conversions are coming in, your CAC is stable, and your sales team is happy. Now what? Before you double your budget, ask yourself: Are we really ready to scale?

Here’s how to know:

Green lights for scaling:

  • Your CAC has been predictable for at least 3-6 months.
  • Your LTV:CAC ratio is healthy (3:1 or better for most SaaS businesses).
  • Your sales pipeline is full, and deals are closing at a steady rate.
  • You’ve tested multiple ad variations and landing pages, and you know what works.

Red flags to watch for:

  • Your cost per lead (CPL) is creeping up.
  • Conversion rates are dropping (even if volume is increasing).
  • Your sales cycle is getting longer (more “maybe later” responses).
  • You’re seeing more low-quality leads (e.g., students, competitors, tire-kickers).

If you’re seeing red flags, don’t scale yet. Instead, dig into the data. Are your keywords still relevant? Are your landing pages converting? Sometimes, the issue isn’t scaling—it’s that your foundation isn’t as strong as you thought.


Finding High-LTV Prospects with Lookalike and Custom Intent Audiences

Not all leads are created equal. Some will churn in a month; others will stick around for years. The trick is to find more of the latter—and that’s where lookalike and custom intent audiences come in.

Lookalike Audiences: Clone Your Best Customers

Google Ads lets you create lookalike audiences based on your existing customer data. Here’s how to do it right:

  1. Start with your best customers—not just any customers. Upload a list of your highest-LTV clients (or those who’ve been with you the longest).
  2. Layer in website behavior. Add people who’ve visited high-intent pages (pricing, demo requests, case studies).
  3. Exclude the noise. Remove past converters, competitors, and low-value segments (like job seekers).

The result? An audience that looks, acts, and converts like your best customers.

Custom Intent Audiences: Target People Actively Researching Your Solution

Custom intent audiences let you target people based on their recent search behavior. For example:

  • If you sell project management software, target people who’ve searched for “best Asana alternatives” or “how to improve team collaboration.”
  • If you’re in HR tech, target those searching for “how to reduce employee turnover” or “best recruiting tools for startups.”

The beauty of custom intent? You’re reaching people who are already in the market for what you sell—no cold outreach required.


Automation and Scripts: Let Google Do the Heavy Lifting

Scaling doesn’t mean working harder—it means working smarter. And the smartest way to scale? Automation.

Scripts are like little robots that do the boring stuff for you. Here are a few game-changers:

  • Pause underperforming keywords. Set a script to automatically pause keywords that haven’t converted in 30 days (or that have a CPL above your target).
  • Adjust bids based on performance. If a keyword is converting well, the script can increase its bid. If it’s not, it can lower it (or pause it).
  • Add negative keywords automatically. If certain search terms keep triggering your ads but never convert, a script can add them to your negative keyword list.

Automated Rules for Budget Pacing

Worried about blowing your budget too fast? Set up rules to:

  • Pause campaigns if they hit a daily spend limit.
  • Increase budgets for high-performing campaigns (e.g., if CPA is below target).
  • Send you an alert if CPL spikes unexpectedly.

The best part? You set these up once, and they run in the background while you focus on strategy.


Case Study: How One SaaS Company Scaled to $10M ARR Without CAC Inflation

Let’s look at a real-world example. A B2B SaaS company in the fintech space wanted to scale from $2M to $10M ARR—without letting CAC get out of control. Here’s how they did it:

  1. Campaign Structure: They split their campaigns by intent—one for high-intent BOFU keywords (e.g., “[competitor] alternative”), another for MOFU keywords (e.g., “how to automate invoicing”).
  2. Bidding Strategy: They used Smart Bidding (tCPA) but set strict CPA targets based on their LTV. If a campaign exceeded the target, they paused it and investigated.
  3. Governance Tactics:
    • Negative keywords: They added 500+ negative keywords to block low-intent searches (e.g., “free,” “open source”).
    • Audience exclusions: They excluded past converters and competitors.
    • Landing page speed: They optimized their pages for mobile (a 1-second delay in load time can kill conversions).
  4. Testing: They ran A/B tests on ad copy, landing pages, and CTAs every month. Small tweaks (like changing a CTA from “Learn More” to “Get a Demo”) improved conversion rates by 20%.

The result? They hit $10M ARR in 18 months, with CAC increasing by only 10%—far below industry benchmarks.

Key lessons:

  • Test everything. Even small changes can have a big impact.
  • Keep your data clean. Bad data = bad decisions.
  • Align sales and marketing. If your sales team isn’t following up on leads quickly, your CAC will suffer.

Final Thoughts: Scaling Without the Headaches

Scaling your Google Ads isn’t about throwing more money at the problem. It’s about being strategic—knowing when to push the gas, when to pump the brakes, and how to find the right people at the right time.

Start small. Test one tactic at a time (e.g., lookalike audiences or a new script). Measure the results. Then double down on what works.

And remember: The goal isn’t just to scale—it’s to scale profitably. If your CAC is creeping up, don’t panic. Go back to the basics: Are your keywords still relevant? Are your landing pages converting? Are you targeting the right people?

Get those right, and you’ll build a Google Ads machine that grows with your business—not against it.

Conclusion: Your 2025 CAC Reduction Playbook

You’ve made it this far—so let’s cut to the chase. If you’re running Google Ads for B2B SaaS, you already know the pain: high CAC, unpredictable spend, and that sinking feeling when your CFO asks, “Why are we still burning cash on clicks that don’t convert?” The good news? It doesn’t have to be this way. The five pillars we’ve covered—intent-based campaigns, BOFU keywords, Smart Bidding, governance, and scaling—aren’t just theory. They’re your playbook for turning Google Ads from a money pit into a predictable, scalable customer acquisition machine.

Here’s the hard truth: most SaaS companies overcomplicate their ad structure. They throw spaghetti at the wall with broad keywords, generic ad copy, and landing pages that don’t match intent. The result? Wasted spend, high CPC, and CAC that spirals out of control. But the companies that win in 2025? They’ll do the opposite. They’ll simplify. They’ll focus on intent—not just keywords—and they’ll treat every dollar like it’s their last. Because in a world where budgets are tightening and investors demand better unit economics, CAC predictability isn’t just nice to have. It’s your competitive advantage.

Your 30-Day Action Plan to Cut CAC

You don’t need to overhaul everything at once. Start small, test relentlessly, and scale what works. Here’s how to break it down:

  • Week 1: Audit and restructure

    • Group your campaigns by intent (e.g., “Demo Requests,” “Pricing Page Visitors,” “Competitor Switchers”).
    • Kill underperforming ad groups—no mercy.
    • Align landing pages with the exact search intent (e.g., if someone searches “[Your Product] vs. [Competitor],” send them to a comparison page, not your homepage).
  • Week 2: Plug the leaks

    • Add negative keywords (e.g., “free,” “open source,” “alternative to [your product]”) to block low-intent traffic.
    • Switch to Smart Bidding (Max Conversions or tCPA) and feed it quality conversion data (not just leads—qualified leads).
    • Exclude past converters and irrelevant audiences (e.g., job seekers, competitors).
  • Week 3: Optimize for speed and relevance

    • Run a landing page speed test (Google’s PageSpeed Insights is free). If it loads slower than 3 seconds, fix it.
    • Add social proof (case studies, testimonials, trust badges) to high-intent pages.
    • Set up offline conversion tracking (e.g., CRM data) to measure real revenue, not just form fills.
  • Week 4: Monitor and refine

    • Benchmark your CPC, CPL, and CAC against industry averages (e.g., for B2B SaaS, a “good” CAC is typically 1-3x your LTV).
    • Run a search term report to find new negative keywords or high-intent opportunities.
    • Test one new ad variation per ad group (e.g., different CTAs, headlines, or offers).

Why This Matters More Than Ever

Lower CAC isn’t just about saving money—it’s about scaling smarter. When your CAC is predictable, you can:

  • Invest more in growth (because you know exactly how much it costs to acquire a customer).
  • Improve unit economics (which makes investors and board members very happy).
  • Outspend competitors (because you’re not wasting budget on low-intent clicks).

The best part? You don’t need a massive budget or a team of PPC experts to make this work. Start with one tactic—maybe it’s restructuring your campaigns by intent or adding negative keywords—and measure the impact. Then, double down on what moves the needle.

Here’s the bottom line: Google Ads for B2B SaaS doesn’t have to be a black box. With the right structure, governance, and a relentless focus on intent, you can turn it into a predictable growth engine. So pick one thing from this playbook and start today. Your future self (and your CFO) will thank you.

Ready to Dominate the Search Results?

Get a free SEO audit and a keyword-driven content roadmap. Let's turn search traffic into measurable revenue.

Written by

KeywordShift Team

Experts in SaaS growth, pipeline acceleration, and measurable results.