Negative keywords are a powerful way to stop wasting money on Amazon ads that don’t convert. By blocking irrelevant search terms, you can focus your budget on shoppers who are more likely to buy, reducing your Advertising Cost of Sales (ACoS) and improving your return on investment (ROI). Here’s how they work:
- What They Do: Negative keywords prevent your ads from showing up in searches that include specific words or phrases.
- Why They Matter: Irrelevant clicks can drain up to 40% of your ad budget. For example, if you're selling green tea and your ad shows up for "black tea", those clicks are unlikely to turn into sales.
- How to Use Them: Add underperforming terms (e.g., high spend, no conversions) to your negative keyword list. Use exact match for specific phrases and phrase match for broader exclusions.
- Results: By filtering out wasteful clicks, sellers often see lower ACoS, better conversion rates, and more efficient use of ad spend.
Regularly reviewing your Search Term Reports is key to identifying wasted ad spend and updating your negative keyword list. This simple practice can help you save money and reinvest in campaigns that drive real results.
What Are Negative Keywords in Amazon PPC
What Are Negative Keywords?
Negative keywords are words or phrases you choose to stop your ads from showing up when a shopper’s search includes those terms. Think of them as the opposite of positive keywords, which trigger your ads. By blocking irrelevant or unprofitable terms, negative keywords help you focus your budget on the audience that actually matters.
For example, if you’re selling organic green tea, adding "black tea" as a negative keyword ensures your ads won’t appear for searches about black tea. This way, your ad spend goes toward reaching people who are more likely to buy your product. It’s a simple but effective way to fine-tune your targeting.
The real strength of negative keywords lies in their ability to sharpen your ad targeting. Instead of wasting money on clicks from uninterested shoppers, you’re narrowing your audience to those who are genuinely interested in your products. To take this a step further, you can use different types of negative keywords - exact match and phrase match - to adjust your strategy even more.
Negative Exact Match vs. Negative Phrase Match
Amazon gives you two types of negative keywords, and each works differently. Knowing when to use each type can make a big difference in how well your campaigns perform.
- Negative exact match keywords: These block your ads only when a shopper’s search matches the keyword exactly. For instance, if you add "black tea" as a negative exact match, your ad won’t appear for "black tea", but it could still show up for searches like "black tea bags organic", since that isn’t an exact match.
- Negative phrase match keywords: These are broader. They block your ad anytime the search contains the entire phrase in the same order. For example, adding "kids shoes" as a negative phrase match would block your ad from searches like "red kids shoes" or "kids shoes for sports", because both contain the phrase "kids shoes".
Here’s a quick breakdown of when to use each type:
| Match Type | Best Used For | Example |
|---|---|---|
| Negative Exact Match | Very specific terms that never convert | Block "black tea" if you sell green tea |
| Negative Phrase Match | Broader groups of unwanted searches | Block "kids shoes" if you sell adult shoes |
The choice depends on how precise you need to be. If you want to block a very specific term, go with exact match. If you’re trying to avoid an entire category of irrelevant searches, phrase match is the way to go.
How Negative Keywords Save Your Ad Budget
Now that you know the basics, let’s talk about how negative keywords protect your ad budget. Every click on Amazon PPC costs money, so showing ads for irrelevant searches can quickly eat into your budget without delivering any sales. Negative keywords act as a financial filter, keeping out clicks from low-intent shoppers who are unlikely to buy.
For instance, if you’re selling premium leather wallets and your ads show up for searches like "cheap wallets", you’re probably attracting bargain hunters who won’t buy your high-end products. Adding "cheap" as a negative keyword stops these clicks from draining your budget and ensures your ads reach shoppers looking for quality over price.
Here’s a practical example of wasted ad spend: search terms with over $35 in ad spend but zero conversions are clear candidates for negative keywords. Similarly, terms with more than 2,500 impressions, a click-through rate below 0.18%, and no sales should be blocked. By filtering out these unprofitable clicks, you can redirect your budget to high-performing keywords that drive real results.
What’s the payoff? By cutting out irrelevant clicks, you’ll see an immediate boost to your return on investment (ROI) and a lower Advertising Cost of Sales (ACoS). Plus, the money you save can be reinvested into campaigns targeting shoppers who are more likely to convert, creating a snowball effect of better performance and cost efficiency.
Keep in mind, Amazon limits negative keywords to four words and 80 characters per keyword. But don’t worry - most of the terms you’ll want to block are short and easy to identify, so this limit won’t hold you back from optimizing your campaigns effectively.
Finding Wasted Ad Spend in Amazon Campaigns
Common Causes of Wasted Ad Spend
One of the top reasons for wasted ad spend on Amazon is irrelevant search terms. When your ads show up for unrelated searches, they might attract clicks from shoppers who have no intention of buying your product. Amazon’s algorithm often casts a wide net, and without proper filtering, you end up paying for traffic that doesn’t convert.
Another budget-drainer is low-converting keywords. These keywords generate clicks but rarely lead to sales. They often attract casual browsers who aren’t ready to purchase. For instance, if you’re selling premium leather wallets and your ad appears for “cheap wallets,” you’re likely drawing in bargain hunters who won’t pay a premium price.
Accidental clicks are another sneaky way your budget gets drained. Mobile users, in particular, may accidentally click on ads while scrolling, which drives up costs without delivering results.
Here’s a quick breakdown of what to watch for when identifying wasted ad spend:
| Problem Type | Warning Signs | Example |
|---|---|---|
| Irrelevant Terms | High impressions, low CTR, no sales | Tea ads showing for "tea jobs" |
| Low-Converting Keywords | Many clicks, few conversions | Premium products triggered by "discount" searches |
| Accidental Clicks | High CTR but very low conversion rate | Mobile users clicking ads while scrolling |
Certain metrics can help you pinpoint wasted spend. For example, any search term with over $35 in ad spend and zero conversions is a clear red flag. Similarly, terms with more than 2,500 impressions and less than a 0.18% click-through rate, with no conversions, should be added to your negative keyword list. Another critical indicator is a search term with over 34 clicks and no conversions, especially when you consider that the average Amazon conversion rate is 9.8% - this suggests something is off with that traffic. By addressing these metrics, you can identify areas where negative keywords can cut unnecessary spending.
How Wasted Spend Affects ACoS and Profits
Wasted ad spend doesn’t just eat into your budget - it also inflates your ACoS (Advertising Cost of Sales) and shrinks your profit margins. ACoS measures how much you’re spending on ads for every dollar of revenue they generate. When you’re paying for irrelevant clicks that don’t convert, the "cost" side of the equation grows while the "sales" side stays stagnant.
For example, if you spend $100 on ads and generate $200 in sales, your ACoS is 50%. But if $30 of that $100 is wasted on clicks that don’t convert, only $70 is effectively driving sales. This adjustment improves your ACoS from 50% to 35%. That wasted $30 could be the difference between a campaign that struggles and one that thrives.
High ACoS makes scaling a challenge. When a large portion of your budget goes toward unproductive clicks, there’s less room to invest in keywords and audiences that actually convert. This creates a vicious cycle where inefficient spending keeps you from growing your campaigns effectively.
Wasted spend also impacts your ROI, making it harder to justify increasing your ad budget. If your campaigns consistently underperform due to irrelevant traffic, you may hesitate to scale, missing out on opportunities to grow your business.
To combat this, regularly reviewing your Search Term Reports is critical. These reports provide detailed insights into which search queries triggered your ads, how much you spent on each term, and whether those clicks turned into sales. Sellers who audit these reports weekly can quickly spot and eliminate wasted spend before it spirals out of control.
The silver lining? Once you identify and block problematic search terms using negative keywords, the results can be immediate. You’ll notice a drop in ACoS, improved conversion rates, and better overall profitability. Even better, you can maintain - or even increase - your sales volume by redirecting your budget to higher-performing keywords.
How Negative Keywords Can Save Your Amazon Ad Spend
How to Add Negative Keywords in Amazon PPC
This section walks you through how to use negative keywords effectively in Amazon PPC campaigns, ensuring your ad budget focuses on shoppers who are more likely to buy.
Step-by-Step Guide to Adding Negative Keywords
Start by logging into Amazon Seller Central and navigating to Campaign Manager. Select the campaign you want to adjust, then click on the Negative Keywords tab.
To add new negative keywords, click the Add negative keywords button. Here, you’ll decide whether to apply these keywords at the campaign level or the ad group level. Campaign-level negative keywords apply to all ad groups within the campaign, while ad group-level negative keywords only affect the specific ad group you choose.
Enter your negative keywords, keeping them within Amazon’s platform limits. Then, choose the match type - either phrase match or exact match. (Amazon doesn’t offer a broad match option for negative keywords.) Once you’ve entered your keywords and selected their match types, click Save.
Finally, make sure to choose the right level (campaign or ad group) and match type to align with your targeting goals.
Picking the Right Match Type and Level
Deciding where and how to apply negative keywords can make a big difference in your campaign’s performance.
- Campaign-Level Negative Keywords: Use these for terms that are irrelevant to your entire product line. For example, if you sell high-end leather wallets, adding "cheap" as a campaign-level negative keyword prevents your ads from showing up in budget-focused searches.
- Ad Group-Level Negative Keywords: These are better for more specific exclusions. For instance, if you’re running a campaign for both men’s and women’s wallets, you might add "women’s" as a negative keyword for the men’s wallet ad group, while keeping it active for the women’s wallet ad group.
The match type is just as important. Negative exact match blocks only the exact term, while negative phrase match excludes any search containing the entire phrase in the same order.
Using Search Term Reports for Regular Updates
Once you’ve set up your negative keywords, it’s crucial to monitor and refine them using Search Term Reports. These reports reveal which search queries trigger your ads, how much you’re spending on each term, and whether those clicks lead to sales.
Download these reports weekly to identify search terms with high impressions, low click-through rates (CTR), or significant spending without conversions. For example, if you sell running shoes but notice queries like "running jobs" or "running tips", these terms likely don’t align with your target audience’s intent and should be added to your negative keyword list.
Set aside time each week to review the data from your Search Term Reports and update your negative keyword list. Look for terms that don’t match the intent of your ideal customer - if a term isn’t likely to lead to a sale, it’s a good candidate for exclusion.
This ongoing review process helps fine-tune your campaigns, making them more efficient and ensuring your budget is spent on clicks that are more likely to convert into sales.
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Best Practices for Negative Keyword Management
Managing negative keywords effectively is all about blending strategic foresight with careful data analysis to ensure your campaigns stay efficient and deliver results.
How to Identify Strong Negative Keywords
Start by diving into your Search Term Reports. These reports reveal the queries that trigger your ads, including those that lead to wasted spend. Look for search terms with over 2,500 impressions, a click-through rate below 0.18%, and no conversions - these are prime candidates for your negative keyword list.
When reviewing search terms, focus on intent. Queries like "free", "jobs", "how to", or competitor brand names often attract clicks from users who aren’t ready to make a purchase. For example, if you're selling ceramic coffee mugs, adding "coffee cups 16 oz" as a negative keyword can help you avoid clicks from people searching for a different size.
Another helpful tactic is competitor analysis. By studying similar products, you can identify irrelevant terms ahead of time and block them before they impact your campaign.
These insights form the backbone of two key strategies for managing negative keywords: proactive and reactive approaches.
Proactive vs. Reactive Negative Keyword Management
Balancing proactive and reactive strategies is essential for crafting a well-rounded negative keyword plan.
- Proactive management means anticipating irrelevant or low-intent keywords and blocking them before they waste your ad spend.
- Reactive management involves analyzing performance data and excluding keywords that have already proven to be ineffective.
| Strategy | Benefits | Drawbacks |
|---|---|---|
| Proactive | Helps avoid wasted spend from the start; saves time and budget | May overlook unexpected irrelevant terms; less flexible |
| Reactive | Relies on real performance data; highly adaptable | Can result in initial wasted spend before adjustments |
The best approach combines both strategies. Start by proactively excluding obvious irrelevant terms, then refine your campaigns based on actual performance data as it comes in.
Regularly revisiting your keyword lists ensures both strategies stay aligned with your campaign’s evolving needs.
Establishing a Routine for Optimization
Consistent monitoring and updates to your negative keyword lists are critical for long-term success. For most campaigns, weekly or bi-weekly optimization checks are ideal, though high-spend campaigns may require more frequent reviews.
During each review, download the latest Search Term Reports and analyze key metrics like click-through rates and conversions. Use this data to update your negative keyword list, removing any terms that are dragging down performance. Keep a record of the changes for future reference.
Organizing your negative keywords into a master list by category, product type, or brand can simplify management. This approach also makes it easier to apply proven exclusions across new campaigns. Additionally, setting performance thresholds - such as flagging terms that fall significantly below the average conversion rate of 9.8% - can help you identify problematic keywords faster and keep your campaigns running smoothly.
Growing Amazon PPC Campaigns with Funding Solutions
Reinvesting Savings into Top-Performing Campaigns
By cutting unnecessary ad spend through negative keyword strategies, you can free up funds to invest in your most successful campaigns. Redirecting those savings into high-performing ads can significantly boost your profits.
For instance, one seller saved $250 each month by excluding the keyword "cheap wallets." They reinvested that money into campaigns that increased sales by 20% and lowered their ACoS by 15%. It’s a practical example of how trimming waste can directly fuel growth.
To get the most out of this approach, focus on campaigns with conversion rates above 9.8% and a strong ROAS. Use your search term reports to pinpoint the keywords and campaigns that consistently deliver results. Then, allocate your saved budget to increase bids on these high-performing terms or expand successful ad groups.
You can also use these savings to test new opportunities. For example, try launching a new product or running seasonal promotions. Since this budget comes from eliminated waste, it’s like using "extra" money to explore growth without putting your core campaigns at risk.
When you combine reinvested savings with additional funding, the potential for scaling your campaigns grows even further.
How Onramp Funds Supports Amazon Sellers
Even with optimized savings, you might need extra capital to take advantage of growth opportunities. That’s where Onramp Funds comes in. They offer fast, equity-free financing tailored for eCommerce businesses, including Amazon sellers looking to scale their advertising efforts.
With Onramp, you can secure funding for inventory, marketing, or campaign expansion. Qualified sellers can receive funds within 24 hours, enabling quick investments in top-performing campaigns or new marketing initiatives without waiting for organic cash flow to catch up.
What makes Onramp stand out is their revenue-based repayment model. Instead of fixed monthly payments, you repay a percentage of your sales. This flexibility means that during slower months, your payments decrease, while in stronger months, you contribute more. It’s a system designed to align with the natural ups and downs of eCommerce.
"Onramp offered the perfect solution with revenue-based financing to secure the capital we needed to invest in inventory and pay it back at a reasonable time frame once we made sales."
To qualify, you need a minimum of $3,000 in average monthly sales. Onramp integrates directly with Amazon, using your actual sales history to create custom cash offers that fit your business’s cash flow and growth potential.
Onramp Funds has already supported over 3,000 eCommerce loans and holds an A+ rating with the Better Business Bureau. Their fee structure, ranging from 2-8%, is transparent, with no hidden charges that could cut into your profits.
For Amazon sellers who’ve streamlined their campaigns with negative keywords, combining saved ad spend with Onramp’s funding can unlock new growth opportunities. You can keep your campaigns efficient while expanding into new markets, launching products, or experimenting with advertising strategies - all without waiting months to build up the needed capital.
Conclusion: Getting the Most from Negative Keywords
Negative keywords are a powerful tool to cut down on wasted Amazon ad spend. By excluding irrelevant search queries, you can ensure your budget is focused on reaching shoppers who are genuinely interested in buying your products. Studies reveal that ignoring negative keywords can drain up to 40% of your ad budget. For instance, one seller lost $10,625 in just 60 days due to this oversight.
The secret to success lies in consistent optimization. Make it a habit to review your search term reports weekly to identify and eliminate underperforming keywords. Over time, these small, regular adjustments lead to significant improvements.
The benefits of proper negative keyword management go beyond just saving money. You’ll see better click-through rates, higher conversion rates, and a noticeable drop in your ACoS (Advertising Cost of Sales). Even better, the money you save can be redirected toward campaigns that actually drive sales, creating a cycle of more efficient and profitable advertising.
With these savings, you can reinvest in your business to accelerate growth. Use the freed-up funds to scale high-performing campaigns. If you need quick access to additional capital, Onramp Funds offers fast, equity-free financing to help you reinvest and grow even faster.
Keep in mind that managing negative keywords isn’t a one-and-done task. Search trends shift, competitors enter the scene, and customer behavior evolves. Regular optimization checks are essential to keep your campaigns sharp and ensure your ad spend is focused on the most relevant searches. Sellers who treat this as an ongoing process, rather than a quick fix, see the best results in both cost savings and revenue growth over the long haul.
FAQs
How can I choose the right negative keywords to optimize my Amazon PPC campaigns?
To fine-tune your Amazon PPC campaigns, start by diving into your search term reports. Pinpoint terms that are racking up clicks but failing to convert into sales. These terms often signal irrelevant traffic. Add them to your negative keyword list to ensure your ads don’t appear for these searches anymore.
It's also worth eliminating overly broad or unrelated terms. Let’s say you sell high-end kitchen knives - terms like "cheap kitchen knives" or "plastic knives" might not align with your target audience. Removing these can help prevent unnecessary ad spend on searches that won’t lead to conversions.
By carefully curating your negative keyword list, you’ll not only cut down on wasted ad spend but also boost your ad performance. This allows you to zero in on customers who are more likely to buy. And if scaling your eCommerce business is part of your plan, keeping cash flow steady and investing smartly in marketing is essential. Services like those offered by Onramp Funds can provide tailored funding solutions to help you grow while keeping your campaigns optimized.
What’s the difference between negative exact match and negative phrase match keywords, and how do I decide which one to use?
Refining your Amazon PPC campaigns often comes down to using negative exact match and negative phrase match keywords effectively. These tools help ensure your ads don’t show up for irrelevant searches, saving you money and improving your campaign’s focus. Here’s a breakdown of how they work:
- Negative exact match: This prevents your ad from appearing only when the search term matches the keyword exactly, with no extra words. It’s perfect for excluding very specific, irrelevant terms that don’t align with your product.
- Negative phrase match: This stops your ad from showing for searches that include the exact keyword phrase, even if additional words are added. It’s ideal for filtering out broader, less relevant search categories.
The choice between the two depends on how targeted you need to be. If you’re looking to block highly specific terms, go with negative exact match. For more general filtering, negative phrase match does the job. Using these tools wisely can help cut down on wasted ad spend and boost your campaign’s overall profitability.
How can I keep my negative keyword list updated to make my Amazon ads more cost-effective?
To make sure your Amazon ads stay cost-effective, it's important to keep a close eye on your negative keyword list and update it regularly. Begin by analyzing your ad campaign performance reports to pinpoint search terms that are driving clicks but failing to convert. Adding these underperforming terms as negative keywords can help reduce unnecessary spending.
It’s also a good idea to schedule routine reviews of your campaigns to catch any new irrelevant or poorly performing keywords. By continuously fine-tuning your negative keyword list, you can better target the right audience, boost profitability, and get the most out of your ad budget.
