Relevance and conversion are the king and queen of Sponsored Ads. That's why it's important to target relevant keywords that matter to your customers.
However, it's equally important to include search terms in your campaigns that you don’t want your ads to show for. These are called "negative keywords".
Adding negative keywords to your campaigns allows you to narrow down your target audience and help ensure your ads are relevant to your customers' search queries.
Let's say you are selling red silicone spatulas and you are bidding for the phrase keyword “spatulas”. With no negative keywords, your ad for red silicone spatulas could appear for search queries such as “wooden spatulas” or "blue spatulas".
Instead, by preventing your ads showing for words or phrases not related to your product such as “wooden spatulas” or "blue spatulas" you won't waste money on useless clicks that won't convert.
Not only does the addition of negative keywords eliminate wasteful ad spend, but it also allows you to reallocate wasted spend to higher converting keywords that are more likely to drive sales. This, in turn, lowers your Advertising Cost of Sale (ACoS) and improves your return on ad spend (ROAS).
How to find negative keywords
Make sure you regularly review your Search Term Report for non-converting keywords that are draining your ad spend. These are keywords with low Click Through Rate (CTR), high spend or high clicks.
Just bear in mind that unlike regular keywords that have three different match types (broad, phrase and exact), negative keywords only have two: phrase and exact.
In summary, negative keywords are an essential component of any PPC campaign. They are one of the most effective ways of reducing your advertising costs while improving relevance, CTR and conversion. and increase your return on investment (ROI).
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