How to Use Negative Keywords to Instantly Cut Wasted Spend
Imagine pouring money into a Google Ads campaign only to discover that more than half of your budget is being wasted on clicks that don’t convert. It’s a harsh reality for many advertisers. In fact, a study of 2,000 audited Google Ads accounts revealed that a staggering 61% of ad spend is wasted on average. That’s a huge chunk of your budget slipping through the cracks.
One of the most effective ways to stop this leak is through the smart use of negative keywords. These are the terms you tell Google not to show your ads for, preventing irrelevant traffic and saving you money. According to CS Design Studios, negative keywords help prevent wasted ad spend by excluding irrelevant search terms. This simple tactic can reduce wasted spend by 10–25%, according to Marketing LTB.
At North Country Consulting, we’ve seen firsthand how negative keyword optimization can transform PPC campaigns. If you’re ready to stop throwing money away and start getting real results, here’s how to use negative keywords effectively.
Why Negative Keywords Matter More Than You Think
Every click costs money, and not every click is valuable. When your ads show up for irrelevant searches, you pay for traffic that won’t convert. This is wasted spend, plain and simple.
Negative keywords act as a filter. They prevent your ads from appearing in searches that don’t match your product or service intent. For example, if you sell premium running shoes, you might want to exclude terms like “free,” “cheap,” or “used” because those searchers aren’t likely to buy your high-end products.
According to Atya Global Digital Marketing, negative keywords eliminate search terms that aren’t converting and won’t ever convert. This means fewer wasted clicks and more budget freed up for the right audience.
Wasted Spend Is a Massive Problem
With global expenditure on search advertising reaching $164.6 billion in 2022 and expected to hit $190.5 billion by the end of 2024, the stakes are high. Every dollar wasted is a lost opportunity to connect with a potential customer. For small to mid-sized businesses, which make up 65% of PPC campaign users according to WebFX, optimizing spend is critical to survival and growth.
Ignoring negative keywords is like leaving your front door open and hoping only the right customers walk in. It’s inefficient and costly. Moreover, the impact of wasted spend extends beyond immediate financial loss; it can also affect your ad rankings and overall campaign performance. Search engines like Google consider click-through rates (CTR) and conversion rates when determining ad placements. If your ads are frequently shown for irrelevant searches, your CTR may decrease, leading to lower Quality Scores. This can result in higher costs per click and diminished visibility in search results, creating a vicious cycle of inefficiency.
Furthermore, the importance of regularly updating your negative keyword list cannot be overstated. As market trends shift and consumer behavior evolves, the terms that once seemed irrelevant may change. For instance, during seasonal sales or promotional events, new keywords may emerge that could attract unwanted traffic. By continuously monitoring and refining your negative keywords, you ensure that your advertising efforts remain targeted and effective, maximizing your return on investment and enhancing your overall marketing strategy.
How to Identify Negative Keywords That Save You Money
Finding the right negative keywords starts with understanding your search terms report. This report shows exactly what people typed before clicking your ads. It’s a goldmine for spotting irrelevant or low-converting queries.
Look for terms that:
Are unrelated to your product or service
Indicate a different intent, such as research-only or informational queries
Include words like “free,” “cheap,” or “jobs” if they don’t fit your offering
For example, if you’re running ads for a luxury spa, you might want to exclude “DIY,” “homemade,” or “massage training” because those searches don’t lead to bookings.
Use Tools to Expand Your Negative Keyword List
Google Ads itself offers keyword tools that suggest negative keywords based on your campaign data. Additionally, third-party tools can analyze competitor terms and industry trends to uncover hidden negatives you might miss.
Regularly updating your negative keyword list is crucial. Search trends evolve, and new irrelevant terms can creep in over time. Consistent monitoring ensures your campaigns stay lean and efficient.
Another effective strategy is to leverage customer feedback and inquiries. Pay attention to the questions your customers ask, as they can reveal insights into misconceptions or unrelated interests. For instance, if you frequently receive queries about “affordable spa packages” when your offerings are exclusively high-end, this indicates a need to add “affordable” as a negative keyword. Engaging with your audience through surveys or feedback forms can also help identify terms that may not initially seem irrelevant but could lead to wasted ad spend.
Moreover, consider analyzing your competitors' ad strategies. Tools like SEMrush or Ahrefs can provide insights into the keywords your competitors are bidding on, including those they may be excluding. By understanding the landscape of your industry, you can better refine your own negative keyword strategy. This competitive analysis not only helps in identifying potential negatives but also in discovering new opportunities to enhance your ad targeting and improve overall campaign performance.
Implementing Negative Keywords Without Killing Traffic
One common fear is that adding too many negative keywords will choke off traffic. But when done right, negative keywords refine your audience rather than shrink it indiscriminately.
Start by adding broad match negatives cautiously. For example, excluding “free” as a broad negative keyword can be risky if you offer free trials. Instead, use phrase or exact match negatives to target specific irrelevant queries. This strategic approach allows you to maintain visibility for users who are genuinely interested in your offerings while filtering out those who are merely browsing without intent to purchase.
Test changes incrementally and monitor performance metrics closely. Look for improvements in click-through rate (CTR), conversion rate, and cost per acquisition (CPA). The average CTR for Google Ads across all industries is 18%, according to HubSpot. Negative keywords can help you get closer to or exceed that benchmark by filtering out uninterested clicks. Additionally, consider setting up A/B tests to compare the performance of ads with and without certain negative keywords. This can provide valuable insights into how specific terms impact your overall campaign effectiveness.
Segment Negative Keywords by Campaign or Ad Group
Not all campaigns have the same negative keyword needs. For example, a campaign promoting budget products might want to exclude “luxury” or “premium,” while a high-end campaign excludes “discount” or “cheap.” Tailoring negatives at the campaign or ad group level maximizes relevance and performance. Furthermore, regularly revisiting and updating your negative keyword list is crucial as market trends and consumer behavior evolve. This ongoing optimization ensures that your ads remain aligned with your target audience's current interests and needs.
Utilizing tools like Google Ads' Keyword Planner can help identify potential negative keywords based on search terms that trigger your ads but do not lead to conversions. Additionally, consider analyzing your search term reports to uncover patterns in user behavior. This data-driven approach allows you to make informed decisions about which keywords to exclude, ultimately leading to a more efficient ad spend and improved return on investment (ROI).
Real Results: How Negative Keywords Boost ROI
At North Country Consulting, we’ve helped clients reduce wasted spend by up to 25% through targeted negative keyword strategies. This reallocation of budget often leads to better ad placements, higher quality clicks, and ultimately more conversions. By focusing on the right keywords, we ensure that your ads reach the most relevant audiences, which not only enhances your brand visibility but also improves your overall marketing efficiency.
One client in the retail sector saw their average cost-per-click (CPC) drop below the industry average of $0.62, reported by Gitnux, after refining their negative keyword list. This allowed them to increase their ad impressions to a more qualified audience without increasing spend. The result was a significant uptick in customer engagement, as potential buyers were more likely to click on ads that were directly relevant to their interests and needs.
Another client reduced wasted spend by identifying and excluding irrelevant job-related searches that were eating into their budget but never converting. This simple tweak improved their conversion rate and lowered CPA dramatically. By honing in on the specific terms that were leading to clicks without conversions, we were able to streamline their advertising efforts, ensuring that every dollar spent was working towards generating real leads and sales.
Why North Country Consulting Is Your Best Partner
We don’t just add negative keywords; we analyze your entire PPC ecosystem to uncover hidden inefficiencies. Our approach is data-driven and customized to your business goals. We understand that every dollar counts, especially when the average business wastes over half their ad budget. Our team employs advanced analytics tools to monitor performance metrics and identify trends, allowing us to make informed adjustments that can lead to substantial cost savings and improved campaign effectiveness.
With North Country Consulting, you get a partner who’s committed to maximizing your ROI through smart, strategic negative keyword management and beyond. We stay on top of trends, continuously optimize, and keep your campaigns lean and effective. Our dedicated team also provides regular performance reports and insights, ensuring that you are always informed about how your campaigns are performing and where there are opportunities for further improvement. This level of transparency and communication is what sets us apart in the competitive landscape of digital marketing.
Getting Started: Your Negative Keyword Action Plan
Ready to cut wasted spend? Here’s a simple action plan to get started:
Download and review your search terms report in Google Ads.
Identify irrelevant or low-converting queries to add as negative keywords.
Use Google’s keyword tools and third-party platforms to find additional negatives.
Implement negatives carefully, starting with phrase or exact match to avoid choking traffic.
Segment negatives by campaign or ad group for precision targeting.
Monitor performance metrics like CTR, conversion rate, and CPA regularly.
Adjust and expand your negative keyword list as new data comes in.
Following this plan can reduce wasted spend by up to a quarter, freeing budget for the clicks that matter most. By focusing on the right keywords, you can not only improve your return on investment but also enhance the overall quality of your traffic. This means more potential customers who are genuinely interested in your products or services, leading to higher conversion rates and better engagement with your brand.
In addition to the steps outlined in your action plan, consider conducting regular audits of your negative keyword strategy. The digital landscape is constantly evolving, and new trends or shifts in consumer behavior can introduce new irrelevant search terms. By staying proactive and revisiting your negative keyword list periodically, you can ensure that your campaigns remain efficient and aligned with your marketing goals.
Need Expert Help?
Managing negative keywords effectively takes time and expertise. If you want to ensure your PPC budget is working as hard as possible, North Country Consulting is here to help. We specialize in optimizing PPC campaigns to eliminate waste and boost performance. Our team of experts can provide insights and strategies tailored to your specific industry, helping you navigate the complexities of digital advertising.
Contact us today to start turning your ad spend into measurable growth. With our support, you can harness the full potential of your advertising efforts, ensuring that every dollar spent contributes to your business's success.
Ready to transform your Google Ads campaigns and significantly reduce wasted spend? At North Country Consulting, our expertise is rooted in a deep understanding of digital marketing and revenue operations, with a track record of success in ecommerce and leadgen. Our founder's extensive experience at Google and leading revenue teams at top startups like Stripe and Apollo.io has shaped our approach to maximizing your ROI. Book a free consultation with us today, and let's start optimizing your ad spend for measurable growth and success.