The Crucial Difference Between Keywords and Search Terms in Google Ads

The Crucial Difference Between Keywords and Search Terms in Google Ads

Why Monitoring Matters and When to Avoid Broad Match

In the world of digital marketing, Google Ads stands as one of the most powerful platforms for reaching potential customers actively searching for products and services. Yet, even seasoned advertisers can find themselves frustrated when their ads appear for irrelevant searches, draining their budget with little return. At the heart of this issue lies a fundamental distinction—keywords versus search terms—and the often-misunderstood implications of Broad Match keywords. This article unpacks these concepts and offers clear guidance on why diligent monitoring is essential, especially for advertisers operating in a niche market.

Keywords vs. Search Terms: Understanding the Basics

Before diving into RankPower’s recommended best practices, it’s crucial to differentiate between two foundational concepts: keywords and search terms.

What Are Keywords?

In Google Ads, keywords are the words or phrases you select and bid on when setting up your campaigns. They reflect what you believe potential customers will type into Google when searching for what you offer. For example, if you run a small bakery, you might choose keywords like “fresh bread,” “artisan pastries,” or “wedding cakes.”

Keywords act as what we prefer to call “seed terms” to Google’s advertising system, they ‘plant the idea’ of which searches you want your ads to appear for and are not especially restrictive. The relationship between keywords and search queries is not one-to-one—this is where things get interesting.

What Are Search Terms?

Search terms (also called search queries) are the actual phrases and words that people type into Google’s search bar before being shown your ad. In other words, search terms are the real-world queries that trigger your ads if Google deems them to be a match to your keywords.

For example, if your keyword is “fresh bread,” your ad could be triggered by search terms such as “where to buy fresh bread near me,” “fresh bread recipes,” or even “how long does bread stay fresh?” Some of these may align perfectly with your business goals, while others may not.

Why the Difference Matters

While keywords are proactive choices made by advertisers, search terms are reactive—they’re a reflection of real user intent. The disconnect between the two can lead to ads showing for less relevant or completely unrelated searches, especially if your keyword matching is too broad.

The Role of Match Types in Google Ads

To manage how closely keywords need to match with search terms, Google Ads provides different match types: Broad Match, Phrase Match, and Exact Match. Each offers a different level of control.

It’s important to recognise that the broader the match type, the more likely your ad is to appear for queries you may not have anticipated – shot-gunning it. Whereas with exact match, you’re using sniper precision.

Why It’s Critical to Monitor Search Terms

Google strongly encourages the use of Broad Match keywords, touting the potential for increased reach and automated optimisation. However, in practice, Broad Match can cause your ads to appear for a surprising array of queries—many with little relevance to your business.

Budget Wastage Through Irrelevant Searches

Here’s a scenario: you’re bidding on “fresh bread” as a Broad Match keyword. With Google’s expansive algorithms, your ad could be displayed for searches like “fresh bread recipes,” “how to store fresh bread,” or even “gluten free bread options.” If you don’t actually sell gluten-free bread or provide recipes, these clicks are essentially wasted budget—they’re unlikely to convert into sales.

Over time, this irrelevant traffic can eat up your advertising spend, leaving you with a lower return on investment and the frustrating sense that your campaigns just aren’t delivering.

The Power of the Search Terms Report

To combat this, Google Ads provides a Search Terms Report—a tool that shows exactly which search queries triggered your ads. By regularly reviewing this report, advertisers can spot patterns, identify irrelevant queries, and add them as negative keywords (words or phrases you specify to prevent your ads from showing for certain searches).

Consistent monitoring and refinement allow your campaigns to zero in on high-intent searches, improving both efficiency and results.

Maintaining Relevance and Quality Score

Another key reason to monitor search terms is Google’s Quality Score—a metric that affects both your ad ranking and cost-per-click. Ads served on irrelevant queries often have lower click-through rates and poor onsite engagement, which can negatively impact your Quality Score and make future advertising more expensive.

Why does Google say Broad Match is Best Practice?

By using broad matched keywords, you would allow their algorithm to eventually tune to a wide range of search terms that convert. But that assumes that the information held about conversion is both accurate and sufficient.

Common scenarios where Broad Match is not best practice may be when:

• There are too few conversions (less than 50 per month)
• Conversion measurement is inaccurate

Broad Match Risks for Niche Markets

Google’s push for Broad Match may benefit large-scale advertisers seeking massive reach. For businesses serving only a specific slice of the market, however, Broad Match comes with significant risks.

Why Broad Match May Not Serve Niche Advertisers

If your business offers a highly specialised product or service—a vegan bakery, a legal consultancy for a particular industry, or a local repair shop—your market is, by definition, a small percentage of the broader population searching online.

Using Broad Match in this context can cause your ads to show for search terms far outside your true target audience. For instance, a vegan bakery using the Broad Match keyword “bakery” might show up for “wedding cake design,” “bread machine reviews,” or “French bakery tours”—none of which are relevant if you only sell vegan products in a specific suburb.

Wasted Budget and Missed Opportunities

Every irrelevant click siphons away precious budget that could instead reach genuinely interested customers. In tightly defined markets, even a modest amount of wasted spend can be the difference between a profitable campaign and a loss.

Loss of Control and Branding Risks

There’s also a reputational element—if your ads frequently appear for unrelated searches, users may form a poor perception of your brand or, worse, begin to ignore your ads altogether (a phenomenon known as “ad blindness”).

When to Use and When to Avoid Broad Match

There are situations where Broad Match can be valuable—such as when testing new markets, launching brand awareness campaigns, or if you have the resources to manage and refine search terms aggressively.

However, if your target audience is a fraction of the overall search volume and your budget is limited, you may benefit from more precise match types like Phrase or Exact Match. These give you tighter control over when your ads are shown and ensure that your budget is allocated to higher-intent, more relevant searches.

RankPower’s Best Practices for Keyword Management in Niche Markets

• Start with Exact or Phrase Match: Launch campaigns with restrictive match types to tightly control ad triggers.
• Consider Broad Match as “seed terms” for the 1 or 2 keywords most closely related to your product or service.
• Regularly Review Search Term Reports: Identify and exclude irrelevant queries using negative keywords.
• Monitor Performance Metrics: Watch your click-through rates, Quality Scores, and conversion rates for signs of wasted spend.
• Refine and Iterate: Continuously optimise your keyword lists based on real-world performance data, and add good converting search terms into your keyword list as exact matches.

Conclusion

Understanding the difference between keywords and search terms is not just an academic exercise—it’s the key to running successful, efficient Google Ads campaigns. While Broad Match keywords can increase reach, they can also rapidly deplete budgets on irrelevant traffic, especially in niche markets. By monitoring search terms closely, leveraging negative keywords, and choosing the most appropriate match type, advertisers can ensure their campaigns reach the right audience, maximise their advertising spend, and ultimately achieve better business results.