Because match types let your ads appear for related queries, you will always catch searches you did not intend. Negatives filter those out. They come in broad, phrase and exact match types of their own, can be applied at the ad group, campaign or account level, and can be grouped into reusable negative keyword lists. The way to find them is the search terms report, which shows the actual queries that triggered your ads rather than the keywords you bid on. Reviewing that report and adding negatives is routine maintenance, not a one time setup task.
For a service business the savings are immediate and obvious. An HVAC contractor who does not do repairs on recreational vehicles adds rv. One that does not sell parts adds parts, diy, manual and how to fix. A law firm adds free, jobs, salary, template and the names of unrelated practice areas. Most new accounts waste a meaningful share of their first month on job seekers, students and people looking for do it yourself instructions. Check the search terms report weekly at first, then monthly.
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