The Paid Search Podcast | Episode 453: Report Finds 80% Do Not Use Negative Keywords

Host: Chris Schaefer, Certified Google Ads Specialist
Release Date: March 10, 2025
Podcast Description:
Google Ads expert and Premier Google Partner Chris Schaefer discusses pay-per-click strategies, Google Ads optimization, online marketing tactics, and effective business advertising. This podcast is tailored for business owners, digital marketing agency professionals, and PPC freelancers aiming to maximize their Google AdWords budgets. New episodes are released every Monday, and listeners are encouraged to submit their Google Ads questions via www.paidsearchpodcast.com.

Introduction

In Episode 453 of The Paid Search Podcast, host Chris Schaefer delves into a revealing report from Optio, a prominent sponsor of the show. The report uncovers that a staggering 80% of Performance Max (PMax) campaigns are operating without negative keywords, a critical oversight in effective PPC management.

Listener Question: Understanding Ad Positions

Timestamp: 10:30

Chris begins the episode by addressing a listener question from Carlin, a fellow Texan. Carlin inquires about Google's admission that the "top" position in ads no longer exclusively means the absolute top spot but could indicate various high-visibility placements on the first page.

Carlin's Question:
"In light of Google's announcement that 'top' may not necessarily mean the absolute top position, should advertisers assume that the true top constitutes about 60% of the top percentage?"

Chris's Response:
Chris advises against recalculating or second-guessing Google's metrics due to the opacity and complexity of Google's ad positioning. He emphasizes the importance of focusing on the top percentage, which reliably indicates whether ads are appearing above or below organic results, rather than trying to decipher the ambiguous "absolute top."

Key Insight:
Understanding and leveraging the top percentage metric is more actionable and accurate for evaluating ad performance than the outdated and unclear "absolute top" position.

Main Topic: Negative Keywords in Performance Max Campaigns

Timestamp: 00:00 – 10:30

Chris introduces the core subject of the episode: a report from Optio revealing that 80% of Performance Max campaigns utilize fewer than 10 negative keywords, with 68% applying none at all. This represents a significant gap in effective PPC strategy, as negative keywords are essential for filtering out irrelevant traffic and optimizing ad spend.

Notable Quote:
"Eight out of ten Performance Max campaigns run with less than ten negative keywords. And out of those, 68% have zero negative keywords at all." – Chris Schaefer [00:00]

Detailed Analysis of the Report

Timestamp: 15:45

Chris delves deeper into the implications of the report. Analyzing data from over 24,000 Performance Max campaigns with a collective monthly spend of $26 million, the findings highlight a widespread neglect of negative keyword strategies.

Key Points:

1. Lack of Negative Keywords:

   • 80% of PMax campaigns have fewer than 10 negative keywords.
   • 68% of campaigns lack any negative keywords entirely.

2. Impact on Performance:

   • Campaigns without negative keywords are likely to attract irrelevant traffic, leading to low click-through rates (CTR) and poor conversion rates.
   • Ineffective budget utilization as ad spend may be wasted on low-quality leads.

3. Current Practices:

   • Many advertisers operate PMax campaigns on a "set it and forget it" basis, neglecting ongoing optimization.
   • The process to add negative keywords is cumbersome, often requiring manual intervention or support from Google.

Notable Quote:
"Negative keywords are the absolute core of quality control in Google Ads. If you don't understand the importance of it, you're missing both levers of your performance max campaign." – Chris Schaefer [35:00]

Importance of Negative Keywords in PPC Management

Timestamp: 25:10

Chris emphasizes that negative keywords are fundamental to controlling the quality of traffic and ensuring that ad budgets are spent efficiently. Without them, PMax campaigns can inadvertently target irrelevant search terms, diluting campaign effectiveness.

Key Insights:

• Quality Control: Negative keywords prevent ads from appearing in searches that are not relevant to the business, thereby improving CTR and conversion rates.
• Budget Optimization: By filtering out non-converting traffic, advertisers can allocate their budgets more effectively towards high-performing keywords.
• Strategic Advantage: Utilizing negative keywords can place campaigns in the top 2.6% of PMax accounts, as identified in the report.

Notable Quote:
"If you want to be in the top 2.6% of Performance Max campaigns, use a couple of negative keywords. Add a few negative keywords, and you're now in a very, very small percentage of accounts that's utilizing a tool that's available to everyone." – Chris Schaefer [40:30]

Tools and Solutions: Optio's Engram Finder

Timestamp: 30:20

Chris introduces the Engram Finder tool by Optio, designed to simplify the process of identifying and implementing negative keywords within PMax campaigns. This tool analyzes search terms to identify wasteful spend and suggests relevant negative keywords to enhance campaign performance.

Features of Engram Finder:

• Automated Negative Keyword Identification: Scans and identifies search terms that are not converting, recommending them as negative keywords.
• Comprehensive Coverage: Works across various campaign types, including search, shopping, and PMax, as well as supporting Microsoft Ads.
• Ease of Use: Integrates with Optio’s platform, making it accessible and user-friendly for advertisers.

Notable Quote:
"Optio's Engram Finder tool instantly finds new negative keywords to reduce your wasted spend. It works across search, shopping, Performance Max, and even supports Microsoft Ads." – Chris Schaefer [32:15]

Best Practices and Recommendations

Timestamp: 35:00

Chris provides actionable strategies for advertisers to improve their PMax campaigns through effective use of negative keywords:

1. Implement Negative Keywords:

   • Use tools like Engram Finder to identify and add negative keywords regularly.
   • Avoid relying solely on account-level negative keywords, as they can inadvertently block desired traffic across different campaigns.

2. Leverage Shared Negative Keyword Lists:

   • Utilize shared lists created via the Performance Max Campaign Modification Request Form to manage negative keywords across multiple campaigns without affecting brand or other specialized campaigns.

3. Continuous Optimization:

   • Regularly review and update negative keywords to adapt to changing search behaviors and market trends.
   • Avoid the "set it and forget it" mindset; active management is crucial for sustained campaign success.

4. Utilize Available Tools:

   • Take advantage of Optio’s tools to streamline the identification and implementation of negative keywords, thereby saving time and enhancing accuracy.

Notable Quote:
"Negative keywords are the only finite granular method to control and perform better in your Performance Max campaigns." – Chris Schaefer [45:00]

Conclusion and Final Thoughts

Timestamp: 55:00

Chris wraps up the episode by reiterating the critical role of negative keywords in PPC management. He urges advertisers to prioritize the implementation and optimization of negative keywords to ensure their PMax campaigns are efficient and effective. Additionally, he highlights the value of leveraging specialized tools like Optio's Engram Finder to facilitate this process.

Final Takeaways:

• Negative Keywords are Essential: They serve as the primary lever for controlling ad quality and budget allocation in PMax campaigns.
• Adopt a Proactive Approach: Regularly update and manage negative keywords to maintain campaign performance.
• Utilize Specialized Tools: Tools like Optio’s Engram Finder can significantly enhance the ease and effectiveness of negative keyword management.

Notable Quote:
"If you don't make use of negative keywords, you're missing basically both levers of your Performance Max campaign." – Chris Schaefer [55:30]

Call to Action:
Chris encourages listeners to explore Optio's tools through a free 28-day trial at optio.com/psp and offers his professional services for campaign management and coaching via chrisshaffer.com.

Overall Summary:

Episode 453 of The Paid Search Podcast by Chris Schaefer sheds light on a significant oversight in Google Ads Performance Max campaigns: the underutilization of negative keywords. Drawing on a comprehensive report from Optio, Chris reveals that 80% of PMax campaigns lack sufficient negative keywords, with 68% having none at all. He emphasizes the pivotal role of negative keywords in enhancing ad performance, optimizing budgets, and maintaining high-quality traffic. Chris advocates for proactive management of negative keywords, aided by tools like Optio's Engram Finder, to elevate campaign effectiveness and secure a competitive edge in the ever-evolving landscape of online marketing.