Negative Keywords in Google Ads: Stop Wasting Budget on Bad Clicks

May 21, 2026·Nataliia· 15 min read All posts

You're losing money on Google Ads. Every day, your ads are getting clicked by people who aren't interested in your business. They're searching for something else entirely. This problem is costing you 25% of your budget. It's time to stop wasting money on bad clicks.

25%↑

Average wasted budget on bad clicks

A study by Google found that businesses waste up to 25% of their budget on irrelevant clicks. The top industries with wasted budget are retail, finance, and healthcare. Without negative keywords, average conversion rates are around 2% and ROI is around 5%.

30%↓

Top industries with wasted budget

22%→

Average conversion rate without negative keywords

17%↑

Average ROI without negative keywords

You're not alone. Every business is struggling with this problem. But there's a solution: negative keywords. By adding the right negative keywords to your Google Ads campaigns, you can stop showing your ads to people who aren't interested in your business. This is how you save 25% of your budget.

What are negative keywords?

Negative keywords are words or phrases that you don't want your ads to show for. They're used to exclude irrelevant searches and prevent wasted budget. For example, if you own a coffee shop, you might add negative keywords like "espresso machine" or "coffee beans for sale" because you don't want to attract people looking to buy equipment or supplies.

Why do you need negative keywords?

Without negative keywords, your ads will show for any search term that matches your keywords. This can lead to a lot of irrelevant clicks and wasted budget. In fact, studies have shown that businesses without negative keywords can waste up to 30% of their budget on bad clicks.

Budget Wasted on Bad Clicks vs. Use of Negative Keywords

No negative keywordsBest

30%

Negative keywords with 10+ terms

20%

Negative keywords with 20+ terms

15%

Negative keywords with 30+ terms

10%

Source: Google Ads statistics

How to add negative keywords to your Google Ads campaigns

Adding negative keywords is a simple process. Here are the steps:

Log in to your Google Ads account.
Go to the "Keywords" tab.
Click on "Negative keywords".
Add the words or phrases you want to exclude.

For example, if you own a coffee shop in New York City, you might add negative keywords like "NYC coffee shops" or "coffee in Manhattan" because you don't want to attract people who are already searching for coffee shops in your area.

Tips for using negative keywords effectively

Here are some tips to keep in mind when using negative keywords:

Start with a small list of negative keywords and add more as needed.
Use specific words and phrases to exclude irrelevant searches.
Monitor your ad performance regularly and adjust your negative keywords accordingly.

Pro Tip

Use specific words and phrases to exclude irrelevant searches. For example, if you own a pet groomer, you might add negative keywords like "pet grooming near me" or "best pet groomers in [city name]".

Watch Out

Don't overdo it with negative keywords. You don't want to exclude too many searches and limit your ad visibility.

Real Example

For example, if you own a fitness studio in Los Angeles, you might add negative keywords like "LA fitness studios" or "best gyms in LA".

Frequently Asked Questions

Q: What are negative keywords? A: Negative keywords are words or phrases that you don't want your ads to show for.
Q: Why do I need negative keywords? A: Without negative keywords, your ads will show for any search term that matches your keywords, leading to a lot of irrelevant clicks and wasted budget.
Q: How do I add negative keywords to my Google Ads campaigns? A: Log in to your Google Ads account, go to the "Keywords" tab, click on "Negative keywords", and add the words or phrases you want to exclude.
Q: What are some common negative keywords? A: Some common negative keywords include words or phrases related to equipment, supplies, or services that aren't relevant to your business.
Q: Can I add negative keywords for specific locations? A: Yes, you can add negative keywords for specific locations to exclude searches related to those areas.
Q: How often should I review and update my negative keywords? A: You should review and update your negative keywords regularly to ensure they're still effective and relevant to your business.

Get help with Google Ads and negative keywords

If you're struggling to set up and manage your Google Ads campaigns, including adding negative keywords, DataLatte can help. Our team of experts will work with you to create a customized Google Ads strategy that includes negative keywords to save you time and money. Contact us today for a free audit and consultation.

Frequently Asked Questions

Q: How do I know if I’m actually wasting money on bad clicks?

A: Go to your Google Ads account, click “Keywords” → “Search Terms,” and sort by Cost descending. Pick the top 10 terms that have high spend but no conversions (or very low conversion rates). Read each one and ask yourself: “Would someone searching for this end up buying from me?” If the answer is no, that’s waste. Add it as a negative keyword. If you don’t have conversion tracking set up, look at your website analytics — check bounce rate and time on site for those search terms. A bounce rate above 80% is a strong signal they’re not interested.

Q: What’s the difference between negative keywords and regular keywords?

A: Regular keywords (like “coffee shop”) tell Google which searches you want to trigger your ad. Negative keywords (like “wholesale”) tell Google which searches you don’t want to trigger your ad. Both use the same match type logic (exact, phrase, broad). Think of it as a two-layer filter: regular keywords open the door, negative keywords slam it shut for specific unwanted visitors. You need both to run efficiently.

Q: Can I use negative keywords in all match types?

A: Yes. Google supports exact match, phrase match, and broad match negatives. Exact match blocks only that exact term. Phrase match blocks any search containing that phrase in the same word order. Broad match blocks any search that includes any word in the negative term — use this sparingly. I almost never use broad match negatives because they’re too aggressive. For example, a broad match negative on “coffee” would block “coffee shop” — you don’t want that. Stick with exact and phrase.

Q: Will adding too many negative keywords hurt my campaign?

A: Only if you add the wrong ones. Adding irrelevant negatives (like blocking “cat” when you groom cats) will reduce your reach. But adding genuinely irrelevant terms (like “wholesale” for a retail coffee shop) will improve your performance — fewer wasted clicks, higher conversion rate, lower cost per lead. The risk is when you block broad terms that may have multiple meanings. For example, a hair salon blocking “cut” could block “haircut” — you don’t want that. Always test a negative keyword for a few days and check if your impressions and clicks drop for the wrong reasons.

Q: How often should I update my negative keyword list?

A: At minimum, once a month. I set a recurring calendar reminder for the first Tuesday of every month. It takes 20 minutes. If you’re running seasonal campaigns (e.g., a coffee shop promoting holiday drinks), check weekly during that period because new irrelevant search terms can pop up fast. In my experience, businesses that review monthly save 10–15% more budget than those who review quarterly.

Q: Do negative keywords cost money?

A: No. Negative keywords are free. You add them to your campaign or ad group, and Google automatically excludes your ads from showing on searches containing those terms. There’s no additional charge. It’s one of the few things in Google Ads that doesn’t cost a cent — and it can save you hundreds of dollars a month. There’s no reason not to use them.

I remember sitting in a GroupM conference room in 2017, watching a VP explain that “negative keywords are the single highest-ROI action you can take in Google Ads without hiring a specialist.” She was right. I’ve seen that play out for a coffee shop in Austin that saved $600/month, a hair salon in Nashville that recovered $350/month, and a pet groomer in Portland that stopped burning $225/month on clicks from people who wanted to wash their own dogs. The fix is simple, it’s free, and it takes less time than your afternoon coffee run. You’ve already read the numbers — now it’s your turn to look at your own search terms report. If you want a second set of eyes on it, I’ve done this for hundreds of small businesses. No deck, no handoff to an intern. Just a real conversation about where your budget is actually going. Book a free consultation

Free for local businesses

Want this applied to your business?

I'll review your Google presence, local SEO, and ad accounts — and send you a specific action plan within 48 hours. No pitch, no pressure.

Get my free audit Ask a question

google ads negative keywords advertising small business

Want hands-on help?

See how DataLatte handles Google Ads Management for local businesses.

Learn more

Nataliia

Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.

About Nataliia