What is Waste Leakage Rate?

The Waste Leakage Rate is the percentage of total Google Ads spend that produced zero conversions over a 30-day window — the headline number of a waste audit.

Why it matters

Every account leaks some spend while the algorithm explores. The leakage rate turns that leak into a single comparable number and tells you whether the account needs targeted trimming or structural repair.

How ClickCatalyst detects it

Total spend is summed from the account's search-term history; wasted spend comes from a pre-classified intelligence pipeline that tags every dollar with a waste category, entity, and recommended action. The rate is the ratio of the two over the same 30-day window.

A search term qualifies as a waste candidate only when it has zero conversions AND at least 2 clicks with real cost — the 2-click minimum filters out single accidental impressions. Below 20% leakage is structurally healthy; 20–40% signals negative-keyword gaps; above 40% signals systemic match-type or intent mismatch.

leakage_rate = wasted_spend ÷ total_spend × 100

Waste term conditions (ALL must be true):
  1. conversions = 0
  2. clicks ≥ 2
  3. cost > 0

Bands: < 20% low · 20–40% moderate · > 40% high

Example

An account spending $17,442 in 30 days with $284.52 classified as waste has a 1.6% leakage rate — healthy, but the audit still names the exact terms to block.