What keywords should a new business avoid in Google Ads?
Quick Answer
New businesses should avoid broad research queries, competitor confusion, free-information searches, and keywords where the page cannot prove trust yet. Target instead high-intent, long-tail commercial queries to prevent burning through your initial budget.
When a new business launches its first Google Ads campaign, the most valuable asset they have is **capital velocity**. Unlike established enterprises with millions of dollars in test budgets, a new business must make every dollar count immediately. They cannot afford to spend $2,000 on 'brand awareness' without seeing conversions.
The easiest way to waste your budget is bidding on the wrong keywords.
Google's default campaign settings are designed to get as many clicks as possible. However, clicks do not pay the bills; leads and customers do.
This troubleshooting guide highlights the four key keyword categories a new business should actively avoid, and how to identify high-intent terms that yield immediate conversions.
1. High-Volume Broad Match Keywords
Google defines Broad Match as showing your ad for searches that are related to your keyword, even if the keyword itself is not present. While this sounds helpful, it allows Google’s algorithm to match your ad with extremely loose variations.
For example, if you are a local commercial cleaning company and you bid on the broad match term office cleaning, Google might show your ad for:
- "office cleaning jobs near me" (job seekers)
- "how to clean office carpet stains" (DIY instructions)
- "cheap office cleaning supplies" (shoppers looking for products, not services)
You will pay for all of these clicks, but none of these searchers will ever hire your agency. A new business should always start with Exact Match and Phrase Match keyword settings to ensure high relevance.
2. Competitor Brand Keywords
A common strategy suggested by agencies is to bid on competitor brand names (e.g. a new CRM software bidding on the keyword Salesforce). The logic is: "If they are looking for Salesforce, they might buy our cheaper alternative."
For a new business, this is a capital trap.
- Quality Score Penalties: Since your landing page is not Salesforce, Google assigns you a low Quality Score (1/10 or 2/10) for competitor terms. This drives up your CPC, meaning you pay double or triple what the competitor pays for the same click.
- Low Conversion Rates: Users typing a specific brand name are looking to log in, contact support, or purchase that specific tool. Their intent is fixed, resulting in extremely high bounce rates.
3. Informational and Research Queries
Avoid queries containing "what is," "how to," "history of," "templates," or "free."
These searches represent the top of the funnel. While they get high traffic, the user is looking for information, not a service. A new business with a limited budget must focus exclusively on the bottom of the funnel.
| Keyword Group | Keywords to Avoid | High-Intent Keywords to Target |
|---|---|---|
| Service Businesses | "plumbing tips," "leak repair guide" | "emergency plumber near me," "roof leak repair quote" |
| SaaS / Software | "what is a crm," "free project board" | "best CRM for local retail shop pricing" |
| Professional Services | "how to write tax audits" | "hire certified corporate tax accountant" |
4. Building Your Global Negative Keyword List
Before launching any campaign, a new business must build a global negative list containing terms that represent job seekers, students, competitors, and informational intents.
Ensure you include: free, cheap, pdf, download, course, class, salary, career, resume, and jobs. This preemptive list filters out a massive percentage of conversion-leaking traffic before you spend a single dollar.
Frequently Asked Questions
Q:Should a new business use Broad Match keywords?
No. Broad Match keywords give Google too much bidding latitude, matching your ads to irrelevant search variations. A new business should always start with Phrase Match or Exact Match keywords to guarantee they target active buyers.
Q:Is competitor bidding worth it for a new business?
Rarely. Bidding on competitors is expensive due to Quality Score penalties and results in low conversion rates. It is much more profitable to target high-intent transactional keywords describing your service directly.
Q:How do I find negative keywords for my new business?
Use Google's Keyword Planner, analyze autocomplete search recommendations, and check your Search Terms Report daily after launching to identify and exclude non-converting queries immediately.
Technical Terminology
Broad Match
A keyword matching setting that shows your ad for searches containing synonyms, related terms, or variations of your target keyword.
Exact Match
A keyword setting that only shows your ad when searches match the exact meaning or intent of your target keyword.
Commercial Intent
A search query category indicating that the user is actively seeking to purchase or hire a service provider.