I'd like to think of myself as a positive person. There is no end to what people moan about: the wrong type of warm weather, the structure of the froth on their cappuccino, visiting parents. Being positive makes a refreshing change. Here is something negative though that I am really positive about.
Negative Keywords
Adding negative keywords to your search campaign is one of the easiest optimisations you can do and it's free!
Negative keywords help to prevent your ad from showing up in search queries unrelated to your website when you bid on broad or phrase match. Negative keywords can increase your click through rate (CTR), improve your average position and decrease the cost per click (CPC).
So negative keywords can bring about a very positive change to your campaign!
Chocolate Labradors & Football Boots
How do you know negative keywords are needed? High impressions and relatively low clicks may indicate your keywords & ads are attracting unwanted attention.
The keyword 'chocolate' for example is a very relevant one for a chocolate manufacturer but the ad would serve about 100 times a month to people looking for 'chocolate Labradors' if you are bidding on phrase or broad match.
Your brand name may also be in need of negative keywords. The chemist Boots would attract traffic from thousands of users looking for footwear. Apple would not only attract traffic from users searching for IPods but also from Nigellas looking for apple crumble recipes if relevant negative keywords are missing from the campaign.
How to find negative keywords?
Pull a keyword performance report and find the high impression/ low click culprits and type these into the Keyword Research tool. Click on the 'negative keywords' tab to select the bits of these keywords you'll need. For a chocolate shop this process may look as follows:

When you find the negative keywords, remember a few things:
1. Only add the part of the keyword you don't want your ad to serve on (so for 'chocolate' the negative keyword would be 'Labrador' and not 'chocolate Labrador').
2. Separate the negative keywords with commas.
3. Individual negative keywords can have up to 100 characters. The maximum amount of characters for all negative keywords is 1024 including commas.
Campaign or ad group level?
Negative keywords can be added on campaign and ad group level. Ensure the keywords in your ad groups are closely related so that it is easy to capture the right negatives for all keywords in the ad group.
Negative keywords work on campaign level in a more generic way. If you only sell new cars for example, you could add 'second hand' on campaign level as a negative keyword to filter out inappropriate prospects.
Additional negative keywords on the ad group level override any added on campaign level.
How do you add negative keywords?
There are two ways in which you can add negative keywords:
1. To ad groups
2. To campaigns
If your campaign is managed, please contact your representative.
Below is an example of how to add negative keywords to existing ad groups. Find out the exact steps in the adCenter help file.
Other colleagues have written about this topic - find the posts here.
If you have any questions or comments please visit the adCenter Forum and if you haven’t already done so, you can keep up with notifications of new posts by becoming a fan on our Facebook Page or by following us on Twitter.
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Updated 7/31/09 to clarify campaign/ad group level negative keyword settings.