Negative keywords are important keywords that save your ad budget by preventing your ads getting triggered by irrelevant search queries. They help you to make sure that your ads appear only in front of those who are actually looking for your offer.
Negative keywords give you a chance to filter out any unwanted traffic and save some dollars that otherwise would have been wasted by the irrelevant clicks. For example, if you sell New Laptops, you might create ads using New Laptops as your keywords. But your ads may get displayed to users searching for Old Laptops, Repair Laptops and Second-Hand Laptops. Since you only sell New Laptops, not Old, Repair or Second-Hand Laptop, getting triggered to these ads is not helpful and will bring in no returns.
Thus, to save your ad budget you can add Old, Second-Hand and Repair as negative keywords. After adding these negative keywords, your ad will only get displayed for a search query that is directly correlated with your targeted keywords. Apart from saving your ad spend, negative keywords can also improve your PPC campaigns by increasing your click-through rate (CTR), conversions, and quality score.
Because the negative keywords make the ads more targeted and focused, the clicks that are generated are more conversion-oriented, and when your CTR and conversions rise, your cost-per-click reduces thus improving your overall quality score.
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