When running Amazon PPC campaigns, managing your ad spend is crucial to improving your return on investment (ROI). One of the most effective ways to optimize your campaigns is by using negative keywords. These keywords prevent your ads from appearing in irrelevant search results, saving you money and improving your overall campaign performance.
In this blog, we’ll explain what negative keywords are, how they work, and why Amazon sellers should use them. We’ll also discuss how Amazon PPC consultants or an Amazon consultant can help you make the most of your PPC campaigns by effectively utilizing negative keywords.
What are negative keywords?
Negative keywords are terms or phrases that you specifically exclude from your PPC campaigns. When a customer searches for a term that includes a negative keyword, your ad will not appear in the search results.
For example: If you sell luxury handbags and add “cheap” as a negative keyword, your ad won’t show up for searches like “cheap handbags.” Similarly, if you sell men’s shoes and add “women’s” as a negative keyword, your ad won’t appear for “women’s running shoes.”
How do negative keywords help in PPC?
Using negative keywords strategically can significantly improve your PPC campaigns in several ways:
Reduce wasted ad spend
One of the biggest benefits of negative keywords is cutting down on irrelevant clicks. Every time someone clicks on your ad, you’re charged—even if they weren’t looking for what you’re selling. By excluding terms that don’t align with your product, you avoid spending money on traffic that won’t convert. For example: If you sell high-end watches, negative keywords like “toy watches” or “watch batteries” can save you from paying for clicks that won’t lead to a sale.
Improve conversion rates
Irrelevant clicks lower your conversion rate, which can hurt your overall campaign performance. By using negative keywords, you ensure your ads only appear to the right audience, increasing the likelihood of conversions. For example: A customer searching for “kids’ water bottles” is unlikely to buy your adult-size sports bottle. Adding “kids” as a negative keyword ensures your ads only appear in searches relevant to your product.
Increase click-through rate (CTR)
When your ads appear for irrelevant searches, they’re less likely to get clicked. This can lower your CTR, which is an important metric in determining how relevant your ads are. Negative keywords improve your CTR by ensuring your ads only show up in highly relevant searches. For example: If you sell coffee grinders, excluding terms like “coffee machine” or “instant coffee” prevents your ads from showing up in searches for products you don’t sell.
Boost your ad rank and lower CPC
Amazon’s ad algorithm rewards ads with high relevance and engagement. A better CTR and conversion rate improve your ad rank, which can lower your cost-per-click (CPC) and make your campaigns more cost-effective. Negative keywords help you achieve this by ensuring your ads are highly targeted and relevant to the search terms customers are using.
Optimize budget allocation
Without negative keywords, your budget may be wasted on clicks that don’t lead to sales. By filtering out irrelevant traffic, you can allocate your budget more effectively to high-performing keywords, maximizing your ROI. For example: If you sell fitness trackers and add “Apple Watch” as a negative keyword, your budget will be focused on customers searching for generic fitness trackers, not Apple’s brand.
Types of negative keywords
Amazon allows you to add negative keywords in two formats:
- Negative exact match: Your ad won’t show up if the exact search term includes your negative keyword. Example: If “cheap backpacks” is a negative exact match, your ad won’t appear for that specific term, but it may still appear for “affordable backpacks.”
Negative phrase match: Your ad won’t show up if the search term includes the negative keyword phrase in any order. Example: If “cheap” is a negative phrase match, your ad won’t appear for “cheap backpacks” or “backpacks cheap.”
