Keyword Quality: Try bidding on mid-to-long tail keywords (ideally 3-4 words) that are targeted to your most qualified customers. Using a more general, highly competitive keyword may sound like a good idea at first, as you are likely to generate a high volume of clicks. However, it is likely that a good percentage of those clicks will not be valuable, or lead to conversions. This is ineffective from a cost perspective. Although long tail keywords match fewer searches, it's much more likely that each and every click is someone who is genuinely interested in specifically what you're offering.
For example, if you own a cake decorating business and you bid on the broad term “cake decorating,” your ad may end up displaying to searchers looking for cake decorating supplies. They may click on your ad, hoping they’ll find what they are looking for on your landing page. But these types of clicks are exactly what you want to avoid from a wasted spend perspective.
You can utilize WordStream’s Keyword Research Tools, located in the Tools tab, to find new mid-to-long tail keyword opportunities.
Set More Restrictive Match Types: Keyword match types control who Google can show your ads to. Generally, keywords set to broad match have a higher volume of impressions and clicks, but because broad match keywords can trigger a wide array of search queries, some of which tend to be irrelevant. The more restrictive your match types are the less impressions and clicks your keywords will generate. However, restricting match types tells Google to only show your ads to searchers whose search queries match exactly to you keywords. So while you will see less impression and click volume, they will be coming from a much more relevant, qualified audience.
If you are currently utilizing broad match keywords and are looking to reduce wasted spend, utilizing more restrictive matches like modified broad, phrase and exact match can help you to cut down on unwanted clicks.
Add Negative Keywords: An easy way to cut down on wasted spend that has been generated from unqualified searchers is to implement negative keywords. By eliminating irrelevant clicks, you can reduce your costs and spend your budget much more efficiently.
WordStream’s Add Negative Keywords Alert, QueryStream, and Negative Keyword Suggestion Tool will help you identify important negatives for your account.