Concepts
The Ultimate Guide to Search Term Negation on Amazon Ads
Mar 5, 2024
by
Kajal Sharma
“Should I negate a keyword or should I reduce the bid?”
“How long should I wait before negating a keyword?”
“What kind of keywords should I absolutely not negate?”
If these are some of the questions you struggle with, keep reading. We will touch on the basics of search term negation and a fantastic framework for evaluating bid reduction vs. negation. We will also discuss how you can use atom11’s, an Amazon ad automation software, to automate search term negation.
Amazon's advertising platform has evolved significantly, borrowing key elements from Google search engine ads. When Amazon Ads launched in 2016, it lacked fundamental features like negative keywords—an omission that quickly became a major concern for D2C sellers familiar with Google Ads. Their demand for better targeting led Amazon to introduce this critical functionality.
Search term negation on Amazon advertising is a crucial strategy to optimize advertising spend on Amazon, allowing advertisers to refine their targeting by excluding irrelevant or low-performing search terms. When a search term is negated, Amazon stops displaying ads for that term, preventing wasted ad spend and ensuring budgets are allocated to high-performing keywords that drive conversions. The definition of a “bad keyword” varies from advertiser to advertiser. For instance, a premium watch brand may negate “replica” or “fake” to avoid association with counterfeits. Meanwhile, a budget-friendly brand may negate “luxury watches” since high-end shoppers may not consider their products.
In a Linkedin poll conducted by atom11, we found that 70% of Amazon sellers prefer to negate “bad” keywords over reducing bids.
In the following section, we will explain a framework for search term negation:
What Keywords Should You Not Negate?
Excluding negative keywords on Amazon Ads is a crucial strategy to reduce wasted ad spend. However, negating the wrong keywords can significantly impact your sales and overall ROI. So, here are the search terms you should not negate at any cost:
1. High-Performing Search Terms
a. High Converting Search Terms: This is a no-brainer. If a search term is performing according to your ACoS targets, resulting in conversions and generating sales, you should not negate it.
b. Low CAC Search Terms: If the Customer Acquisition Cost (CAC) on the search term is lower than the target CAC (i.e., AOV x Target ACoS), but the keyword is not performing well ACoS-wise, then consider reducing the bid.
2. Branded Search Terms
Branded search terms often perform well, driving high-intent traffic from customers already familiar with your brand. However, if a branded keyword isn't delivering expected results, it's better to pause it rather than negate it entirely. Pausing allows you to reintroduce the term later if market trends or competition shift, while negation permanently blocks it, potentially losing valuable brand-related traffic.
3. Ranking Search Terms
To rank for a new search term, avoid negating related keywords solely based on past performance data, as this may restrict visibility and growth potential. Ranking campaigns focus on bidding aggressively on target keywords to secure higher placement. For example, if you're selling office chairs, you should create a dedicated campaign for the term "office chair" with a competitive bid. These keywords often have a high ACoS, but despite the cost, they are crucial for improving ranking. Therefore, it's essential to exclude them from search term negation.
What Keywords Should You Negate?
Now that you’re aware of the keywords you must exclude from your negation list, let’s look at the search terms you should negate to optimize ad spend.
1. Similar but Irrelevant Search Terms
Let’s say you sell hair oil. If you bid on the high-search-volume keyword “oil,” your ads may appear for searches related to cooking oil, automobile oil, or essential oils—leading to unnecessary impressions and clicks. Instead, you can bid on “oil” while negating terms like cooking oil, vegetable oil, automobile oil, and essential oil to ensure your ads reach the right audience.
Similarly, if you sell adult diapers and bid on “diaper,” your ads may primarily show up for baby diaper searches. To avoid irrelevant traffic, you can negate terms like baby diaper, baby diaper size M, and newborn diaper while still bidding on “diaper.”
These irrelevant searches can be identified through search term reports, allowing you to continuously refine negation rules for your search term negation on Amazon ads strategy.
2. Branded Terms in Generic or Competition-based Campaign
If your campaign structure separates search terms into branded, generic, and competition-based categories, it’s important to negate branded search terms from generic and competition campaigns.
Why is this necessary?
Amazon’s search algorithm prioritizes ads with a higher expected Click-Through Rate (CTR) to maximize revenue. Since branded search terms often yield higher CTRs, Amazon may favor them in placements—even within your generic campaigns. If you don’t negate branded search terms, these terms will start appearing in generic campaigns, reducing visibility for truly generic keywords and distorting campaign objectives.
By performing search term negation on Amazon ads for branded terms in generic and competition campaigns, you ensure that each campaign serves its intended purpose—helping you allocate ad spend efficiently while maintaining targeted audience segmentation.
Negation Framework
If the above is not the case, then use the below framework for search term negation on Amazon ads. This Negation Framework will tell you exactly when to negate your search terms based on your Amazon objective.
Objective | Negation Usecase | Suggested Actionable | Time Frame |
Increase share of voice | Does not negate keywords. | Reduce bid to minimum instead. | - |
Increase sale | Click → 4*CTC, Sale = 0 | CTC (Click to Conversion) = Click/Orders If CTC = 10 i.e., 10 clicks to get a sale, then you should negate if the search term has 40 clicks but no sale. Anything less than that should be a case of bid reduction. |
|
Improve profit | Spend → 10*CAC, Sale = 0 | Target CAC = AOV * Target ACoS If Target CAC = $6 and spend = $60 Anything less than that should be a case of bid reduction | 60 days |
Low margin | Spend → 5* Target CAC, Sale = 0 | Target CAC = AOV * Target ACoS If Target CAC = $6 and spend > $30 Anything less than that should be a case of bid reduction | 30 days |
Here’s a detailed explanation:
a. If your objective is to increase your share of voice or visibility, do not negate keywords. You should set up rules to reduce bids until they hit the minimum target.
b. If your objective is to increase sales, focus on optimizing clicks rather than just search terms. Evaluate your account’s average click-to-conversion rate. If a keyword generates four times the typical click-to-conversion rate but still doesn’t result in a sale, consider negating it to prevent wasted ad spend.
c. If your objective is profitability, focus on the ad spend threshold instead of clicks. If spending on a search term exceeds five times your target CAC, consider negating that search term. Otherwise, reduce bids strategically to optimize cost while maintaining visibility.
How to Set Up Search Term Negations Using an Amazon Ad Automation Software atom11
Negating search terms directly in the Amazon Ad Console comes with significant limitations:
Lack of Bulk Negation – The Ad Console doesn’t support bulk search term negation, requiring advertisers to rely on bulk sheets, which can be unreliable and difficult to navigate for many users.
Difficulty in Tracking Negation History – You must manually review each campaign and ad group to determine when and where specific terms were excluded.
Due to these challenges, using an Amazon ad automation software like atom11 is a more efficient alternative for managing search term negation on Amazon ads. Its rule-based algorithm ensures you negate the right search terms.
Key features of atom11
Custom Rule-Based Negation – Set up keyword negation rules tailored to campaign objectives.
Multi-Campaign Implementation – Apply rules across multiple campaigns for consistency.
Flexible Rule Editing – Modify negation rules as your objectives change or evolve.
Negation History Tracking – View history of search term negation on Amazon ads by campaign, time, and rule name for better analysis.
How to Implement Search Term Negation with atom11
1. By Campaign Objective
atom11 allows advertisers to define search term negation rules for Amazon ads based on campaign goals. For example, you can set up three different rules for three distinct objectives, ensuring precise exclusions.
2. By Campaign Structure
atom11 enables you to exclude branded and single-keyword campaigns from negation rules, preventing unintended exclusions in key areas.
3. Setting Up Negation Rules
You can set up rules as per your strategic formula based on performance metrics. Here are a few effective formulas:
Clicks-Based Negation: If a search term has > 20 clicks in the last 21 days but no sales, negate it.
Conversion-Based Negation: If a keyword exceeds 5x the average click-to-conversion rate but results in zero sales, negate it.
Formula: Click-to-Conversion Rate = Clicks / Orders.
Example: If your conversion rate is 10%, then click-to-conversion is 10 clicks per sale. A search term receiving 50 clicks (5x conversion rate) with no sales should be negated.
Spend-Based Negation: If ad spend surpasses $100 in the last 21–30 days and generates no sales, negate the term.
Conclusion
A well-structured search term negation framework is essential for optimizing Amazon ad performance. Unlike adjusting bids or refining keyword selection, negating a search term for Amazon ads is a significant decision with lasting consequences. Excluding the wrong term can restrict visibility and impact sales—making strategic negation crucial.
atom11’s framework for search term negation provides a reliable approach to making informed negation decisions, but flexibility is key. Exceptions may arise, and adapting to performance trends ensures your strategy remains effective. Base your negation framework on metrics like clicks, CAC, and sales to guide decision-making.
For best results, negate search terms using exact match keyword to prevent unnecessary exclusions while maintaining control over targeting. A thoughtful negation strategy helps maximize ad spend efficiency, leading to stronger Amazon PPC performance.
Mastering good vs. bad search term discretion takes time, so be patient, and keep learning.
Happy advertising!
Want to dive deeper into atom11’s negation methodology and ad automation? Read how atom11 helped Betterled achieve a 23% improvement in their Amazon Ads.
To learn more, book a call with us now!
FAQs
What are search terms in Amazon ads?
Search terms in Amazon ads are the words or phrases that customers type into Amazon's search bar, triggering your ads to display. These are the user queries that match your keywords and cause your advertised products to appear in the Amazon search results.
What are negative keywords in search ads?
Negative keywords in Amazon search ads are specific words or phrases that prevent your ads from showing for specific customers' search queries. These terms are related to the product but are unlikely to bring in any conversions. These negative keywords help you exclude irrelevant traffic and focus your ad spend on more relevant audiences.
Can you add negative keywords to shopping ads?
Yes, you can add negative keywords to Amazon Sponsored Products and Sponsored Brands campaigns. This helps prevent your products from appearing for irrelevant searches, improving your ad optimization and efficiency.
How do I add negative keywords in Amazon ads?
To add negative keywords in Amazon ads, go to your campaign in the Amazon Ads console, select the ad group, navigate to the "Negative keywords" tab, click "Add negative keywords," choose either phrase or exact match type, enter your keywords (one per line), and click "Add keywords."
However, negating search terms on the Amazon Ad Console is challenging because it does not allow bulk search term negation, and it is difficult to check the history of negated search terms. So, using Amazon ad automation software like atom11 makes it easier to negate search terms. With atom11, you can set up custom rules for keyword negation and check negated search term history by campaign, time, and rule name.
