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Over the past several weeks, we've posted blog entries about PPC keyword research and ways to optimize your AdWords campaign in order to save advertising dollars.

One of the key steps in setting up and maintaining an effective PPC campaign, and one that falls in line with both of these topics, is building a negative keyword list.

First, it's important to understand what negative keywords are and what function they serve.  To do this, why not use Google's definition - Negative keywords are a core component of a successful keyword list. Adding a negative keyword to your ad group or campaign means that your ads won't show for search queries containing that term.

If you're using broad match at all in your PPC campaign (which we've talked about before), you know that there are numerous search queries that Google may tie to your ad.  And while Google may deem your ad relevant for some of these searches, many may not be, leading to unwanted clicks and unnecessary spend.

For example, let's say you are an auto mechanic in Eugene, Oregon, specializing in only German automobiles.  If you are bidding on the keyword BMW mechanic in Eugene Oregon and you've set this keyword to broad match (which you'll recall from a previous post, can indeed be very broad in scope), Google may very well show your ad when a user searches for Chevy mechanic in Eugene Oregon.  This user is obviously not the audience you are targeting and if they click on your ad, you've just paid for a click that will likely not convert to a sale!

To put together an initial negative keyword list, try using Google's Keyword Tool.  After a few weeks or months go by (depending on the type of traffic levels your campaign drives), run a search query report and take a look at each keyword's impression and click totals.  From this report, you'll be able to see irrelevant searches that may be driving significant traffic and can use this data to optimize your negative keyword list.  This type of monitoring and optimization will help better target your ads while saving plenty of money in the long run.