How to Pick the Best Keywords for Google Ads: A Step-by-Step Guide

Picking the best keywords for Google Ads comes down to understanding your audience's search intent, balancing volume with competition, and continuously refining based on real performance data. This guide walks you through the exact process—from initial brainstorming to building a high-converting keyword list that doesn't waste your budget on irrelevant clicks. Whether you're launching your first campaign or optimizing an existing one, these steps will help you find keywords that actually drive results, not just traffic. Let's skip the theory overload and get into what actually works.

Most advertisers approach keyword research backwards. They open Google Keyword Planner, type in a few obvious terms, grab whatever has high volume, and wonder why their campaigns burn through budget without converting. The problem? They're building their list around what they think people should search for, not what people actually search for when they're ready to buy.

The difference between a profitable campaign and a money pit often comes down to how well you understand the path your customers take from problem to purchase. When someone searches "best project management software" versus "asana pricing," they're at completely different stages of their buying journey. One's still exploring options, the other is ready to pull out their credit card.

This guide will walk you through the exact process successful PPC managers use to build keyword lists that convert. No fluff, no outdated tactics—just the seven steps that separate campaigns that scale from campaigns that drain your budget. By the end, you'll have a framework you can apply to any campaign, whether you're advertising accounting services or artisan coffee beans.

Step 1: Map Out Your Customer's Search Journey

Before you touch any keyword tools, you need to understand how your customers think when they're searching. Think of it like planning a road trip—you need to know the route before you start driving.

Your customers move through distinct stages when they're looking for what you sell. At the awareness stage, they're just realizing they have a problem: "why is my website loading slowly" or "how to improve team communication." They're not ready to buy yet—they're still figuring out what their problem actually is.

The consideration stage is where things get interesting. Now they're comparing solutions: "project management software vs spreadsheets" or "best email marketing platforms for small business." They know what category of solution they need, but they're evaluating options.

The decision stage is where the money lives. These searches include your brand name, competitor names, pricing queries, and specific product features: "mailchimp pricing 2026" or "hubspot vs salesforce for startups." These people are ready to make a decision—they just need the final push.

Here's what this looks like in practice. Let's say you run a Google Ads management agency. Your awareness-stage keywords might be "how to reduce Google Ads costs" or "why are my ads not converting." Consideration stage could be "Google Ads consultant vs in-house" or "best PPC management tools." Decision stage would be your agency name, "PPC management pricing," or "hire Google Ads expert."

Create a simple three-column document. Label them Awareness, Consideration, and Decision. Under each column, brainstorm 5-7 phrases your ideal customer would actually type into Google at that stage. Don't overthink it—just write what feels natural.

The key here is to think like your customer, not like a marketer. Avoid industry jargon unless your customers actually use it. Nobody searches for "enterprise-level SaaS solutions for digital transformation"—they search for "software to manage remote teams" or "tools to track project deadlines."

You'll know you've succeeded when your seed list includes phrases that sound like actual conversations. If you read your keywords out loud and they sound like something a real person would say to a colleague, you're on the right track. If they sound like they came from a corporate press release, start over.

This exercise should give you 15-20 core terms that represent real search behavior across different stages. These become the foundation for everything that follows. Without this step, you're just guessing—and guessing gets expensive fast in Google Ads.

Step 2: Expand Your List Using Keyword Research Tools

Now that you have your seed list, it's time to multiply it. This is where keyword research tools come in—but they're only as good as the foundation you built in Step 1. Feed them garbage seed keywords, get garbage suggestions back.

Start with Google Keyword Planner, which is free and built right into Google Ads. Paste in your seed keywords, and it'll show you related terms along with monthly search volume estimates and competition levels. Don't filter yet—just collect. You're looking for variations, synonyms, and phrases you hadn't thought of.

Here's a trick most advertisers miss: use Google's autocomplete as a research tool. Type your seed keyword into Google search, but don't hit enter. Watch what Google suggests. Then add a space and type each letter of the alphabet. "Google Ads a..." will show you "Google Ads account setup," "Google Ads agency," and so on. This reveals what real people are actually searching for right now.

The "People also ask" section on Google's search results is another goldmine. Search your main keywords and scroll down to see what questions Google thinks are related. Each question represents a potential keyword or content angle. Click to expand them, and you'll often get even more related questions. Learning how to use Google's related queries for new keywords can dramatically expand your research capabilities.

If you have budget for paid tools, SEMrush or SpyFu can show you what keywords your competitors are bidding on. This isn't about copying them—it's about finding gaps. Maybe they're bidding on broad industry terms but missing specific long-tail keywords. Those gaps are your opportunities.

As you collect keywords, dump everything into a spreadsheet. Don't judge or filter yet—that comes next. Right now, quantity matters. You want 50-100 potential keywords before you start cutting. Think of it like mining for gold—you need to move a lot of dirt to find the valuable stuff.

Pay special attention to long-tail variations. Instead of just "email marketing software," you'll find "email marketing software for real estate agents" or "email marketing software with landing page builder." These longer, more specific phrases often have lower competition and higher intent. For a deeper dive into this strategy, check out our guide on how to research long tail keywords for Google Ads.

One warning: keyword tools often suggest high-volume terms that look tempting but don't actually match what you sell. If you run a premium service, don't get seduced by keywords that include "cheap," "free," or "DIY." Those searchers aren't your customers, no matter how much volume they have.

By the end of this step, you should have a messy, unfiltered list of 50-100+ keyword possibilities. It should feel overwhelming—that's normal. The next steps are all about cutting this down to the keywords that will actually make you money. For now, cast a wide net and capture everything that might be relevant.

Step 3: Evaluate Search Intent Behind Each Keyword

This is where most advertisers waste the most money. They see a keyword with decent volume and reasonable competition, add it to their campaign, and then wonder why it drives clicks but no conversions. The problem? They never checked what the searcher actually wanted.

Search intent comes in four main flavors. Informational intent means someone wants to learn something: "what is Google Ads" or "how does PPC work." These searchers aren't ready to buy—they're researching. Navigational intent means they're looking for a specific website or page: "facebook login" or "mailchimp dashboard." They already know where they want to go.

Commercial intent is where things get interesting for advertisers. These searches include comparison terms and "best of" queries: "best crm for small business" or "hubspot vs salesforce." The searcher is evaluating options and getting closer to a purchase decision. Transactional intent is the holy grail—these people are ready to buy: "buy running shoes online," "quickbooks pricing," or "hire seo consultant."

Here's the critical step most people skip: actually search each keyword in Google and look at what comes up. Open an incognito window, type in the keyword, and examine the first page of results. What do you see? Blog posts and how-to guides? That's informational intent. Product pages and pricing comparisons? That's commercial or transactional intent.

Let's say you're considering the keyword "email marketing tips." Search it right now. You'll probably see blog posts, guides, and listicles—all informational content. If you're selling email marketing software, this keyword will drive clicks from people who want free advice, not people ready to buy your product. That's wasted spend.

Now search "email marketing software for ecommerce." The results shift dramatically—you'll see product pages, comparison sites, and software listings. These searchers are evaluating solutions. Much better match for a conversion-focused campaign.

For each keyword on your list, mark it with its primary intent. Then be ruthless: if you're running campaigns to drive sales or leads, cut most of the informational keywords. They might feel relevant because they're about your industry, but they won't convert. Save them for content marketing, not paid ads.

Focus your Google Ads budget on commercial and transactional intent keywords. These are the searches where people are actively looking to solve their problem with a purchase. They're comparing options, checking prices, and ready to take action.

The SERP test is your reality check. If you search a keyword and the results don't look like what you're offering, that keyword won't work for you. If you sell premium consulting services and the search results show DIY tutorials and free tools, move on. The searcher's intent doesn't match your offering, no matter how relevant the keyword seems on paper.

By the end of this step, you should have cut your list by at least a third. That's good—you're filtering for quality, not quantity. Every keyword you remove is money you won't waste on irrelevant clicks. The keywords that remain should all represent searchers who are at least considering a purchase, if not ready to buy immediately.

Step 4: Analyze Volume, Competition, and Cost Metrics

Now it's time to run the numbers. A keyword might have perfect intent, but if it costs $50 per click and you're selling a $30 product, the math doesn't work. This step is about finding keywords where the economics make sense for your business.

Start with monthly search volume, but don't fall into the trap of chasing big numbers. A keyword with 10,000 monthly searches might sound amazing, but if only 1% of those clicks convert and your margins are thin, you'll lose money fast. Meanwhile, a keyword with 100 monthly searches but 10% conversion rate could be a goldmine.

Look at the competition level in Google Keyword Planner. High competition means lots of advertisers are bidding on that term, which usually drives up costs. Low competition might mean you found an overlooked opportunity—or it might mean the keyword doesn't actually drive results and others have already figured that out.

The estimated CPC (cost per click) is your reality check. If Google estimates $15 per click, ask yourself: can I afford that? More importantly, can I make money at that cost? Do the quick math—if your conversion rate is 5% and your average order value is $200, you can afford to pay up to $10 per click and still be profitable. At $15, you're losing money on every sale. Understanding what is a good CPC for Google Ads helps you set realistic expectations for your campaigns.

This is where understanding your business metrics becomes critical. You need to know your conversion rate (or make an educated guess for a new campaign), your average customer value, and your profit margins. Without these numbers, you're flying blind.

Here's a framework that works: calculate your maximum CPC by taking your profit per customer and multiplying by your expected conversion rate. If you make $100 profit per customer and expect a 2% conversion rate, your break-even CPC is $2. To be profitable, you need to stay well below that—aim for 50% of break-even as a starting point.

Look for keywords with the sweet spot combination: decent volume (enough to matter), medium to low competition (so costs stay reasonable), and strong commercial or transactional intent. These are your quick wins—keywords where you can get traffic without breaking the bank.

Don't ignore low-volume keywords if the intent is strong. A keyword with only 50 monthly searches but clear buying intent can be incredibly valuable. These are often highly specific long-tail terms where the searcher knows exactly what they want. Less competition, lower costs, higher conversion rates.

Create a simple scoring system. Rate each keyword on a scale of 1-5 for volume, intent, and affordability (inverse of CPC). Add up the scores. Keywords scoring 12 or higher are your priority targets. Anything below 8 probably isn't worth your time or budget.

By the end of this step, you should have a ranked list of keywords where the economics make sense. You've filtered out the keywords that are too expensive, too competitive, or too low-volume to move the needle. What remains are keywords where you have a realistic shot at profitable performance.

Step 5: Choose the Right Match Types for Each Keyword

Match types control when your ads show up, and getting this wrong is one of the fastest ways to waste money. Think of match types as a dial that adjusts how much control versus reach you want. Turn it one way, you get precision but less traffic. Turn it the other way, you get volume but less control.

Broad match is the loosest setting. Add "running shoes" as a broad match keyword, and your ad might show for "buy athletic footwear," "best sneakers for jogging," or even "shoe stores near me." Google interprets your keyword liberally, matching it to related searches and synonyms. This gets you maximum reach but minimum control over who sees your ads.

Phrase match sits in the middle. Your keyword phrase has to appear in the search query, but there can be words before or after it. "Running shoes" in phrase match could trigger for "best running shoes for women" or "cheap running shoes online," but not "shoes for running marathons" because the word order changed.

Exact match gives you the most control. Your ad only shows when someone searches that specific keyword or very close variations (like plurals or misspellings). "Running shoes" in exact match shows for "running shoes," "running shoe," or "runningshoes," but not "best running shoes" or "running shoes for kids."

Here's the strategic approach: if you have a limited budget or you're just starting out, lean heavily on phrase and exact match. These give you control over where your money goes. You won't get as much traffic, but the traffic you do get will be more relevant and more likely to convert. Understanding how keyword match type affects your Google Ads performance is essential for making informed decisions.

Use broad match strategically, not as a default. Broad match can be powerful for discovering new keyword opportunities you hadn't thought of, but only if you pair it with a strong negative keyword list (which we'll cover next). Without negatives, broad match is just a budget drain waiting to happen.

A smart campaign structure uses multiple match types for the same keyword, organized into separate ad groups. You might have one ad group with "email marketing software" in exact match, another with it in phrase match, and another in broad match. This lets you control bids differently based on how much control each match type gives you.

Exact match keywords should get your highest bids because they're most likely to convert—you know exactly what the searcher wants. Phrase match gets medium bids. Broad match gets the lowest bids because you're taking more risk on relevance.

When you're building out your initial keyword list, start with phrase and exact match for your core terms. Once your campaign is running and you're seeing consistent conversions, then consider adding broad match versions to expand reach. But never launch a campaign with only broad match keywords unless you enjoy watching money disappear. It's also worth understanding how phrase match changed in recent Google Ads updates to avoid unexpected impressions.

Group your keywords by match type in your spreadsheet so you can see the structure clearly. Each keyword should have a match type assigned before it goes into Google Ads. This prevents the common mistake of accidentally adding everything as broad match and wondering why your budget evaporated overnight.

Step 6: Build Your Negative Keyword List From Day One

Negative keywords are the unsung heroes of profitable Google Ads campaigns. They tell Google what searches you don't want to show up for, preventing wasted clicks from people who will never become customers. Most advertisers treat negatives as an afterthought—something to add later when they notice problems. That's backwards.

Start building your negative keyword list before you even launch your campaign. Look at your keyword list and think about all the ways someone could search for something similar but completely irrelevant to what you offer. If you sell premium software, add "free," "cracked," "pirated," and "open source" as negatives. If you're B2B, add "jobs," "careers," "salary," and "resume."

Think about your expanded keyword list from Step 2. Buried in there are probably terms that came up in research but don't actually fit your business. If you sell accounting software and "accounting degree programs" showed up in your research, add "degree," "programs," "courses," and "certification" to your negative list.

Common negative keywords that apply to most businesses: "DIY," "how to," "tutorial," "free," "cheap," "used," "repair," "jobs," "salary," "reviews" (unless you specifically want people reading reviews), "download," and "torrent." These terms indicate someone looking for information or free alternatives, not someone ready to buy. For a comprehensive starting point, check out our negative keywords list for Google Ads.

Create negative keyword lists at both the campaign and account level in Google Ads. Account-level negatives apply to all your campaigns—these are the universal terms that never make sense for your business. Campaign-level negatives are more specific to that particular campaign's goals. Learn where to add negative keywords in Google Ads to implement this correctly.

Here's a pro move: before you launch, search your main keywords in Google and look at the related searches at the bottom of the page. These often reveal search patterns you want to avoid. If you see related searches that don't match what you offer, add those terms as negatives.

But here's the thing—your negative keyword list is never finished. Plan to review your search terms report at least once a week for the first month, then bi-weekly after that. The search terms report shows you the actual queries that triggered your ads. You'll inevitably find irrelevant searches you didn't anticipate.

When you find junk search terms, add them as negatives immediately. Don't wait. Every day you delay is more wasted budget. If "email marketing tips" triggered your ad and the person didn't convert (because they wanted free advice, not software), add "tips" as a negative keyword. Our guide on how to find negative keywords in Google Ads walks you through this process in detail.

Use different match types for negatives too. If you add "free" as a broad match negative, it will block any search containing the word "free." If you use exact match negative, it only blocks the exact word "free" by itself. Usually, broad match negatives make sense for obvious terms like "free" or "jobs." Understanding how match types work for negative keywords prevents accidental blocking of valuable traffic.

A well-maintained negative keyword list can reduce wasted spend by 20-30% or more. It's one of the highest-ROI activities in Google Ads management, yet most advertisers neglect it. Don't be most advertisers. Build it proactively, maintain it consistently, and watch your cost per conversion drop.

Step 7: Organize Keywords Into Tight Ad Groups

You've got your keywords, you've assigned match types, you've built your negative list. Now comes the structure that makes everything work: ad groups. This is where campaigns live or die, because ad group structure directly impacts your Quality Score, which impacts your costs and ad position.

The rule is simple: each ad group should contain 3-10 keywords that are closely related enough to share the same ad copy. If you can't write one ad that makes sense for all the keywords in the group, your ad group is too broad.

Let's say you're advertising project management software. You might have one ad group for "project management software" and close variations like "project management tools," "project management platform," and "project management app." These all have the same intent and can share ad copy focused on software features.

But "project management software for construction" needs its own ad group. Why? Because the ad copy should speak directly to construction companies, mentioning industry-specific features like job site tracking or contractor management. Mixing it with generic project management keywords dilutes the message.

Think of ad groups as themes. Each theme gets its own ad group with tightly related keywords and customized ad copy. This relevance between keyword, ad, and landing page is what Google rewards with higher Quality Scores—which means lower costs and better ad positions. Mastering how to choose keywords for Quality Score improvement can significantly reduce your advertising costs.

Avoid the common mistake of creating one massive ad group with all your keywords. Google will show your generic ad for all sorts of different searches, your click-through rate will be mediocre, your Quality Score will suffer, and you'll pay more per click. Tight ad groups always outperform broad ones.

Also avoid the opposite mistake: creating ad groups with only one keyword. Unless it's a very high-value branded term, single-keyword ad groups are overkill for most businesses. They create unnecessary complexity without meaningful benefit.

As you organize your keywords into ad groups, name them clearly. Use names like "PM Software - General," "PM Software - Construction," "PM Software - Agencies." Six months from now when you're optimizing the campaign, clear naming will save you hours of confusion.

Each ad group should have a clear, focused message. When you look at the keywords in the group, you should immediately know what angle the ad copy needs to take. If you're confused about what message the ad group should convey, the keywords probably don't belong together.

This organization work feels tedious, but it pays dividends. Well-structured campaigns are easier to optimize, perform better, and cost less. Messy campaigns with bloated ad groups are a nightmare to manage and consistently underperform. Do the work now, reap the benefits for months.

Putting It All Together

You now have the complete framework for picking keywords that actually drive results. Start with customer journey mapping to understand what people search for at each stage. Expand your list using keyword research tools, but don't get seduced by volume alone. Evaluate search intent by actually searching your keywords and seeing what comes up. Analyze the numbers to make sure the economics work for your business.

Apply match types strategically—phrase and exact for control, broad for discovery (with strong negatives in place). Build your negative keyword list proactively, not reactively. And organize everything into tight ad groups where keywords, ads, and landing pages align perfectly.

The best keyword lists aren't static. They evolve as you learn what actually converts. Your search terms report is your most valuable optimization tool—check it weekly and be ruthless about cutting what doesn't work. When you find winners, double down. Add more keywords around the same theme, increase bids, and scale what's profitable.

Most advertisers overcomplicate this process. They chase fancy tactics and forget the fundamentals. But the fundamentals are what separate profitable campaigns from money pits. Understand your customer's search journey, match their intent, watch the numbers, and stay organized. Do these things consistently, and your campaigns will outperform 90% of advertisers.

The difference between a keyword list you built in an hour and one you built using this process? Probably thousands of dollars in wasted spend versus profitable growth. The time you invest upfront in thoughtful keyword selection pays for itself many times over in reduced costs and higher conversions.

One final note: managing keywords at scale gets complex fast. If you're running multiple campaigns or managing keywords for clients, the spreadsheet approach breaks down. You need tools that let you work efficiently without losing the strategic thinking that makes campaigns successful.

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