Digital Marketing, Google Ads

The Role of Negative Keywords: What You Need to Know

In the world of digital marketing and advertising, success doesn’t always come from doing more, often, it comes from doing less. That’s the principle behind negative keywords, one of the most underrated tools in any Google Ads campaign. At Studio22, we’ve worked with businesses across industries to refine their PPC strategies, and consistently, the brands that learn to exclude the wrong traffic see better results. 

So what exactly are negative keywords, why do they matter, and how can you use them to improve your ad performance? Let’s take a deep dive. 

What Are Negative Keywords? 

Negative keywords are words or phrases you specify to prevent your ads from appearing in irrelevant searches. When a user types in a query containing a negative keyword, your ad won’t show. This filters out unqualified traffic and helps ensure that only the most relevant audiences see your ad. 

Let’s say you run a Perth-based architectural firm that specialises in high-end residential design. You wouldn’t want your ads showing up for queries like “free floorplan templates” or “architecture internships.” By adding negative keywords like “free” or “jobs,” you prevent wasted clicks from users who were never going to become customers. 

It’s not just about saving money, it’s about focusing your ad spend where it matters. Targeting is crucial, and this is one of the simplest ways to do it right. 

Why Are Negative Keywords So Important? 

We’ve helped many small and medium businesses across Australia reduce wasted ad spend just by focusing on this one area. In fact, one of our clients, a boutique furniture brand, saw a 29% improvement in click-through rate (CTR) and a 21% reduction in cost-per-click (CPC) after we optimised their negative keyword list. 

Here’s why negative keywords matter: 

  • Better ad relevance: Your ads are served to the right audience, improving your quality score. 
  • Lower bounce rates: Users who click are more likely to stay and convert. 
  • Improved ROI: You’re spending your budget on high-intent users, not curious browsers. 
  • Smarter data: Your campaign analytics become more accurate without noise from poor-quality clicks. 

This process also improves your bidding strategy. If your ad quality increases, your cost-per-click can decrease, even as visibility improves. 

Real World Strategies  

At Studio22, we tailor negative keyword strategies for businesses across industries. Here are some common use cases: 

Retail & E-commerce: 

  • Negative keywords: “cheap”, “free”, “second hand” 
  • Why: These terms attract bargain hunters or non-buyers, which may not align with premium products. 

Professional Services (e.g., lawyers, consultants): 

  • Negative keywords: “courses”, “jobs”, “training” 
  • Why: People looking to enter the industry are not prospective clients. 

Luxury Brands: 

  • Negative keywords: “discount”, “budget”, “replica” 
  • Why: High-end brands want to avoid bargain-related terms. 

Software & SaaS: 

  • Negative keywords: “torrent”, “crack”, “open source” 
  • Why: These are often associated with pirated or free versions. 

We also consider seasonal variations. For instance, if a brand only offers services during specific months, we may block searches that relate to outdated promotions.  

How to Build a Strong Negative Keyword List 

A negative keyword list should evolve with your campaigns. Here’s how we typically approach it at Studio22: 

  1. Audit Your Search Terms: Use the Google Ads Search Term Report to see which keywords triggered your ads.
  2. Look for Irrelevant Patterns: Flag searches with no buyer intent or the wrong audience.
  3. Use Keyword Match Types Wisely:

    • Broad match: Excludes if the query contains the term in any form. 
    • Phrase match: Excludes if the query contains the exact phrase. 
    • Exact match: Excludes only the exact search term. 
  4. Apply at the Right Level: Decide whether to apply negative keywords to an entire campaign or just one ad group. 
  5. Review Frequently: Campaigns evolve. What’s irrelevant today might not be tomorrow. 

A key tip? Don’t go overboard. It’s easy to block too much and inadvertently suppress legitimate traffic. We recommend scheduling a fortnightly check-in to update your list, particularly during promotions or new product launches. 

Common Mistakes to Avoid 

Using negative keywords effectively requires nuance. Here are common pitfalls we see: 

  • Too many broad matches: Overuse can restrict visibility. 
  • Copying competitor lists: What works for one business might not work for yours. 
  • One-size-fits-all lists: Different campaigns have different goals – don’t apply one list to all. 
  • Forgetting to review: A negative keyword list should be part of regular campaign maintenance. 

One client came to us with stagnant ad performance. Their problem? They had added so many negative keywords that their ad impressions dropped by 70% – including impressions from ideal customers. Once we restructured their list and tested incrementally, performance bounced back. 

Another common issue is not tailoring by ad group. An e-commerce brand, for example, might want to exclude “kids” in their adult collection campaigs, but not for children’s products. 

How We Help Businesses Use Negative Keywords the Right Way 

Our Google Ads team doesn’t just focus on what you should target, we also work on what to avoid. Every ad campaign we build includes a comprehensive negative keyword review, tailored to the client’s market, goals, and unique search behaviour. 

We take time to understand what customers don’t want as much as what they do. This allows us to proactively block irrelevant clicks, but also surface untapped potential. Often, we’ll pair negative keyword updates with A/B testing of ad copy to further refine targeting. 

For example, we recently worked with a Perth-based legal firm that was struggling with irrelevant leads from students and job seekers. After applying a smart set of negative keywords (including “internship”, “law courses”, “graduate job”), the firm saw a 40% improvement in conversion quality and reduced their monthly spend by $500, with better leads to show for it. 

We treat negative keywords not as a quick fix, but as a strategic lever. By combining audience research, competitor analysis, and campaign goals, we ensure your ads are shown only to people who matter. 

Small Detail, Big Impact 

In a competitive digital advertising environment, every click counts. Adding negative keywords to your Google Ads strategy is one of the most efficient ways to refine targeting, improve relevance, and boost return on investment. 

Our expert team is here to help you build not just smarter campaigns, but more profitable ones. Whether you’re launching a new product or scaling a service, filtering out the wrong clicks is just as important as targeting the right ones. 

Want to fine-tune your Google Ads performance? Get in touch with Studio22 and let’s talk about how we can use data, strategy, and a bit of negative thinking to drive positive results.