For Amazon sellers, managing advertising costs while maintaining profitability remains one of the biggest challenges in 2024. At the heart of this challenge lies ACoS (Advertising Cost of Sales) – the percentage of attributed sales spent on advertising. When your ACoS creeps too high, it eats into your profit margins and can turn profitable products into loss leaders.

Implementing a strategic negative keyword approach can reduce ACoS by 20-35% within the first month of optimization, leading to significant improvements in campaign profitability.

What Are Negative Keywords and Why Do They Matter?

Negative keywords act as filters that prevent your ads from appearing for specific search terms. Think of them as a protective barrier that shields your advertising budget from wasteful spending on irrelevant clicks. When someone searches using terms you’ve designated as negative keywords, your ads won’t show up, saving you from paying for clicks that are unlikely to convert.

Research from leading PPC management platforms indicates that campaigns without proper negative keyword optimization typically waste 20-30% of their ad spend on irrelevant clicks. This translates to thousands of dollars in unnecessary advertising costs for medium to large-scale sellers.

Types of Negative Keyword Match Types

Understanding the three negative keyword match types is crucial for effective campaign management. Each type serves a specific purpose in controlling your ad visibility:

Broad Match Negatives

Broad Match Negatives work as the widest net, excluding searches containing your specified words in any order. For instance, if you sell designer handbags and add “fake” as a broad match negative, your ads won’t show for “fake designer bags,” “fake luxury purses,” or any similar variations.

Phrase Match Negatives

Phrase Match Negatives offer more precise control by excluding searches containing your exact phrase in order. Using our previous example, adding “knockoff handbags” as a phrase match negative would prevent your ads from showing for “cheap knockoff handbags” but would still allow “handbags knockoff.”

Exact Match Negatives

Exact Match Negatives provide the most specific exclusions, blocking only searches that match your keyword exactly. This is particularly useful for targeting specific product variations or models you don’t carry.

A recent study of 1,000 Amazon PPC campaigns revealed that campaigns using all three match types strategically showed an average ACoS improvement of 25% compared to campaigns using only one match type.

Identifying the Right Negative Keywords

Finding the right negative keywords requires a systematic approach combining data analysis and market understanding. The cornerstone of this process is the Search Term Report in Amazon Seller Central, which reveals exactly how shoppers find your products.

Here’s a methodical approach to identifying valuable negative keywords:

Analyze Search Term Report

First, examine your Search Term Report for terms with high spend but no sales after 10+ clicks. These are prime candidates for your negative keyword list. For example, if you sell organic tea and notice terms like “tea kettle” or “tea strainer” generating clicks without conversions, these should be added as negatives.

Conduct Manual Searches

Next, conduct manual searches on Amazon to understand how your ads appear in different contexts. This reveals potential negative keywords you might miss in reports alone. Research indicates that manual search analysis typically uncovers 30-40% more irrelevant keyword variations than automated tools alone.

Modern PPC management platforms like Helium 10 and Jungle Scout offer advanced negative keyword suggestion features. Their algorithms analyze millions of search patterns to identify potentially harmful keyword associations. 

How to Do Negative Keyword Placement Strategically

The placement of negative keywords significantly impacts their effectiveness. Understanding the hierarchy of negative keyword implementation can make the difference between moderate and exceptional results.

Account Level 

Place universal negatives that never apply to any of your products here. Data shows that account-level negative keywords can prevent up to 40% of irrelevant clicks across all campaigns. For instance, terms like “used,” “refurbished,” or “wholesale” might apply account-wide for a retail seller.

Campaign Level

This is where you’ll place most of your negative keywords. Campaign-level negatives help maintain distinct boundaries between different product lines or advertising strategies. Analysis of successful Amazon sellers reveals that well-optimized campaign-level negatives reduce ad spend waste by 25-35%.

Ad Group Level

The most granular control comes at the ad group level. Here, you can exclude specific variations that might be relevant for other ad groups but not this particular one. Studies show that proper ad group level negative keyword optimization can improve conversion rates by up to 20%.

Negative Keyword Multiple Strategy

The negative keyword multiple strategy suggests maintaining a specific ratio between negative and positive keywords. Research across thousands of Amazon PPC campaigns indicates that maintaining a 3:1 to 5:1 ratio of negative to positive keywords produces optimal results.

This multiplier effect works because it creates a more precise targeting net. Market data shows that campaigns following the 3:1 minimum ratio experience an average 30% reduction in irrelevant clicks and corresponding improvement in ACoS.

Adding Negative Keywords in Amazon Ads

Adding negative keywords to your Amazon campaigns requires precision and attention to detail. The process begins in Campaign Manager, where you’ll find the negative keyword management interface. According to Amazon Advertising specialists, most sellers only utilize 30% of available negative keyword features, leaving significant room for optimization.

Start by accessing your campaign settings. Navigate to the “Negative Keywords” tab, where you can choose your match type and enter terms. A crucial tip from top performers: always audit your negative keyword syntax before saving. Even a minor typo can negate the effectiveness of your negative keyword strategy.

Recent data from major Amazon PPC management firms indicates that campaigns with properly implemented negative keywords see click-through rate improvements of 15-25% within the first week. This improvement directly correlates with reduced ACoS.

Other Strategies to Reduce High ACoS

While negative keywords form the foundation of ACoS optimization, combining them with other strategies multiplies their effectiveness. Here are some strategies:

Product Listing Optimization

Product listing optimization plays a crucial role. Data shows that listings with optimized titles and bullet points convert 23% better than standard listings, naturally lowering ACoS. Focus on incorporating relevant keywords while maintaining readability and persuasive copy.

Bid Management

Bid management requires constant attention. Top-performing sellers adjust bids weekly, maintaining a sweet spot between visibility and cost. Analysis of over 10,000 campaigns reveals that systematic bid optimization reduces ACoS by an average of 18% over static bidding strategies.

Ad Scheduling

Ad scheduling has emerged as a powerful tool, with data showing that concentrating ad spend during peak converting hours can improve ACoS by 12-15%. Most categories see their highest conversion rates between 8 PM and 11 PM local time.

Advanced Negative Keyword Strategies

Moving beyond basics, advanced negative keyword strategies can further refine your campaigns. Market leaders use thematic negative keyword lists, organizing exclusions by category, intent, and season.

Competitor KW Exclusion

Competitor keyword exclusions require careful consideration. While you might want to target competitor terms, some variations can drain your budget without converting. Data indicates that properly implemented competitor keyword exclusions can reduce wasted ad spend by 20-30%.

Seasonal Adjustments

Seasonal adjustment of negative keywords is crucial. For instance, during holiday seasons, adding negatives related to gift wrapping or bulk purchases (if you don’t offer these services) can prevent wasteful clicks. Studies show that seasonal negative keyword optimization can improve Q4 ACoS by up to 35%.

Common Mistakes and How to Avoid Them

PPC experts have identified several critical errors that can undermine negative keyword effectiveness.

The most common error is negative keyword overload. A recent study found that 32% of sellers blocked potentially valuable traffic by being too aggressive with negative keywords.

Another frequent mistake is failing to regularly update negative keyword lists. Data shows that campaigns with static negative keywords experience a 15-20% decline in efficiency over six months compared to regularly updated campaigns.

Frequently Asked Questions

What’s the optimal frequency for reviewing negative keywords? 

Data shows weekly reviews produce best results, with sellers achieving 23% better ACoS than monthly reviewers. However, daily monitoring during peak seasons is recommended.

How many negative keywords should I start with? 

Research indicates starting with a 2:1 ratio of negative to positive keywords, increasing to 3:1 or 4:1 as data accumulates. Most successful sellers maintain between 300-500 negative keywords per major campaign.

Can negative keywords hurt my campaign performance? 

Yes, if not managed properly. Studies show that 25% of poorly performing campaigns suffer from overly restrictive negative keywords. Regular performance monitoring is essential.

Which tools provide the most reliable negative keyword suggestions? 

Current market leaders include Helium 10, Jungle Scout, and Sellics, with accuracy rates between 85-92% for negative keyword suggestions.

Wrapping Up

Negative keywords are a game changer when it comes to managing high ACoS on Amazon. They allow you to cut out irrelevant traffic and focus on what truly matters—relevant, high-converting clicks. By identifying the right negative keywords, placing them strategically, and using advanced strategies like the negative keyword multiple, you can reduce wasted spend and see a noticeable improvement in your campaign performance. Just remember, this is an ongoing process. Regular monitoring and fine-tuning are essential to keep your ACoS in check and your profits growing.