How to Use Keywords to Improve Your PPC Performance

Pay-per-click (PPC) advertising can be a highly effective way to drive traffic, leads or sales — but only if you deploy the right keywords in the right way. In this post we’re going to dig deep into how to use keywords to improve your PPC performance: how to research them, structure them, manage them, optimise them, and avoid the most common mistakes.
Whether you’re running a small campaign on Google Ads, or managing multiple platforms, this guide will help you use keywords as a powerful lever for better ROI.

1. Why keywords are critical in PPC

Before we dive into tactics, let’s step back and ask: why do keywords matter so much in PPC?

1.1 Keywords as the match-point of intent

In search PPC campaigns, advertisers bid on keywords so their ads can show when users type search queries. As noted, PPC is based on keywords. Wikipedia+2Wikipedia+2
If your keywords don’t reflect what users are searching for (or what they intend to do when they search), your ads may show in the wrong context, cost you money, but deliver poor results.

1.2 Keywords affect relevance, cost & performance

Keywords are tied closely to metrics such as click-through rate (CTR), conversion rate, cost per click (CPC), and ultimately return on ad spend (ROAS).
For example, more relevant keywords → better matching ads/landing pages → higher Quality Score → lower CPCs and better ad placement. Wikipedia+1
Conversely, generic or ill-fitting keywords may generate clicks but few conversions — wasteful spend.

1.3 Keywords influence campaign structure and control

How you choose and organise keywords dictates how you structure campaigns/ad groups, how you write ad copy, and what landing pages you send traffic to. A good keyword strategy gives you control over who sees your ads, when, and what message they see. As one guide notes: “Selecting the most relevant keywords … you’ll realise better alignment between ads and the keywords used by shoppers.” mikmak.com

2. The keyword research process

Let’s walk through a structured process for researching keywords for PPC. Treat this as your blueprint.

2.1 Define goals & your target audience

Before keywords, clarify what your campaign is trying to achieve: lead generation? direct sales? brand awareness? What is the target customer persona, their pain-points, the language they use?
Having clarity on your audience means you can pick keywords that match how they search.

2.2 Brainstorm “seed” keywords

Start by generating a list of basic keywords that relate to your business, product, service, or audience language. These are your “seed” keywords. For example, if you sell “laptop bags” then seeds might be “laptop bag”, “laptop backpack”, “best laptop bag for travel”, etc.
The idea is to think like the user: what would they type if they were looking for what you offer? As one article puts it, “Instead of keeping all the keywords in one big bucket, begin to think about which keywords make the most sense for your specific products, brand names, and target consumer.” mikmak.com

2.3 Use keyword-research tools to expand & validate

Once you have seed ideas, plug them into tools (e.g., Google Keyword Planner, SEMrush, Ahrefs) to generate related terms, check volume, competition, CPC estimates. For example, SEMrush’s guide suggests examining search volume, CPC and intent when selecting keywords. Semrush
Points to capture:

Monthly search volume (how many times people search).
Estimated CPC (how much cost per click).
Competitive level (how many advertisers bidding).
Search intent (what the user likely wants).
Trend (are searches rising/falling).

2.4 Segment by intent & match type

It’s vital to recognise that not all keywords are equal: some indicate high buying intent (transactional) others are informational (just research). For PPC, you generally want to prioritise keywords closer to purchase intent (unless you’re doing awareness). For example: “buy running shoes online” vs “what are running shoes”.
Also apply match types (exact match, phrase match, broad match) in your campaigns to control how strictly a term triggers your ad. As SEMrush explains: start with exact match for top keywords (highest intent) then phrase, then broad to discover variations. Semrush+1

2.5 Add negative keywords

Equally important: what you don’t want your ad to show for. Negative keywords help prevent irrelevant traffic and wasted spend. For example, if you sell premium watches, you may exclude “cheap watch deals” or “watch jobs” etc. Wikipedia’s definition of negative keywords in PPC emphasises they allow you to exclude search queries unlikely to convert. Wikipedia+1
This is a key optimisation lever (we’ll cover more later).

2.6 Organise keywords into tightly-themed ad groups

Once you have a set of keywords, group them logically into ad groups and campaigns based on themes (e.g., product type, persona, funnel stage). Tighter groups enable you to write more relevant ad copy, landing pages, and help boost relevance metrics. From SEMrush: grouping by theme (“appointment booking software”, “free scheduling tool”, etc) improves targeting. Semrush

2.7 Prioritise & prune keywords

You will often end up with many keyword ideas. But not all deserve equal attention. Filter out:

Keywords with very low search volume (little traffic).
Keywords whose CPC is outside your budget/ROI potential.
Keywords that don’t match your offer or target audience.
As one article states: “Eliminate terms that don’t draw enough monthly searches or impressions and those that carry a cost-per-click (CPC) outside of your budget.” mikmak.com

2.8 Map keywords to ad copy and landing pages

Ensure that each keyword (or keyword group) has matching ad copy and a landing page that delivers on the promise of the search. This ensures relevance and helps boost Quality Score (meaning the ad performs better, cost less, appears higher). As Unbounce explains: “Your landing page should reflect your ad’s promise exactly.” Unbounce

3. Structuring keywords for maximum impact

Selecting keywords is half the battle; structuring them well is the other half. The way you organise your keywords and match types will influence campaign performance.

3.1 Match types and their implications

The three main match types in many PPC platforms (particularly Google Ads) are broad match, phrase match, and exact match.

Exact match: your ad triggers only when the search query exactly matches your keyword (or close variants). Highest relevance, best control, often higher CPC but higher conversion potential. Semrush+1
Phrase match: your ad triggers for searches that include your keyword phrase (with maybe extra words before or after). A little broader. Semrush
Broad match: your ad triggers for a wide range of searches that Google considers related to your keyword, including synonyms, misspellings, etc. Highest reach, but lowest control. Use carefully. Semrush+1
A smart strategy: Start with exact match on your highest-intent keywords. Then add phrase match variants. Use broad match only for wider discovery but monitor closely. Unbounce+1

3.2 Single-Theme Ad Groups (STAGs)

A best practice: keep each ad group focused on a single strong theme or product/offer. This allows your keyword set, ad copy and landing page to align tightly. SEMrush calls this grouping by “Single Theme Ad Groups”. Semrush
For example, if you sell “red leather handbags” you might have one ad group for “red leather handbag”, another for “black leather handbag”, rather than bundling “handbags” broadly.

3.3 Negative keywords at campaign/ad-group level

Ensure negative keywords are applied at both campaign level (global negatives) and ad group level (specific negatives). This prevents unwanted searches from triggering your ads. For instance, if one campaign sells premium editions, you might exclude “cheap”, “discount”, “free” etc at the ad group level. DashThis

3.4 Keyword prioritisation & bidding

Once keywords are in place and grouped, you’ll often give higher bids (or higher priority) to:

Keywords with higher intent (e.g., “buy” vs “learn about”).
Keywords that have historically performed well (low cost per conversion).
Keywords aligned closely with your core offer.
Lower bids (or pause) keywords that have less intent, high cost, or poor performance.

4. Matching keywords to intent and funnel stage

One of the biggest performance gains comes when you map keywords explicitly to the user’s search intent and where they are in the buying journey.

4.1 Understanding search intent

Search intent generally falls into categories:

Informational: user wants to find information (“what is PPC”, “how to cook biryani”).
Navigational: user is looking for a specific site or brand (“Facebook login”).
Transactional / Commercial: user is ready to buy or convert (“buy running shoes online”, “best laptop deals India”).
For PPC campaigns aimed at conversions, focusing on transactional-intent keywords provides better results. One article warns: “New advertisers … prioritizing volume over relevance is exactly the wrong approach.” Semrush

4.2 Keyword examples mapped to intent

Informational: “what is PPC advertising”, “how to choose digital camera”
Commercial/transactional: “buy digital camera online India”, “discount Nikon D3500 India”
Branded: “Canon EOS 90D price India”, “Sony α7 IV deal”
When you capture the right intent, your ad copy and landing page can match it, yielding higher conversion rates.

4.3 Tailoring ad copy and landing pages accordingly

If a keyword is transactional, your ad should reflect the buying opportunity (e.g., “Shop Now”, “Get 10% Off”, “Free Shipping”), and the landing page should enable that conversion immediately.
If a keyword is informational, ad copy and landing page should provide helpful content and lead to a next step (subscribe, download). But note: many pure informational keywords may not make sense for PPC if your goal is revenue — they may cost clicks without conversions.

4.4 Funnel stage segmentation

Top-of-funnel (TOFU): Keywords like “what is”, “how to”, “benefits of” → good for awareness campaigns
Mid-funnel (MOFU): Keywords like “compare”, “review”, “best in class” → good for consideration
Bottom-of-funnel (BOFU): Keywords like “buy”, “deal”, “discount”, “near me” → conversion ready
By segmenting, you can deploy different ad messages, bids and landing pages for each funnel stage.

5. Ongoing keyword optimisation & refinement

Launching your campaign isn’t the end of the story. Keywords require continuous monitoring and refinement — this is where many advertisers gain competitive advantage.

5.1 Monitor key metrics

Track metrics for each keyword/ad group/campaign such as:

Impressions
Click-through rate (CTR)
Conversion rate (CVR)
Cost per conversion (CPA)
Return on ad spend (ROAS)
These give you insight into how each keyword is performing.

5.2 Review search term reports & add negatives

Use your search term (query) report to see exactly what users searched when your ad was shown. Identify irrelevant queries and add them as negative keywords. This reduces wasted spend. As one article notes: “Effective use of negative keywords improves relevance and reduces wasted spend.” DashThis+1

5.3 Pause or adjust under-performing keywords

If a keyword has high cost but low or zero conversions, consider reducing its bid, moving it to a lower-priority ad group, or pausing it entirely.
One community comment emphasised caution:

“If you are changing match types or adjust the keyword itself, then you are basically starting from scratch with that ‘new’ keyword.” Reddit
This means avoid constantly rotating keywords without giving them time to gather data.

5.4 Expand keyword list based on performance

Use keywords that perform well as seeds for expansion. For example, a performing long-tail keyword may lead you to other similar variants. SEMrush suggests blending SEO organic data for hidden keyword opportunities. Semrush+1

5.5 Match keyword ideas to device, location, time of day

Keyword performance often varies by device (mobile vs desktop), geographic location, time/day. Adjust bids accordingly for high-performing segments.

5.6 Landing page and ad copy alignment

If keywords are performing poorly (low CTR or low conversion), check alignment:

Does ad copy reflect keyword and promise?
Does landing page deliver what the ad and keyword implied?
Unbounce: “Your landing page should reflect your ad’s promise exactly.” Unbounce
Improving alignment improves relevance, Quality Score and performance.

6. Advanced keyword strategies

Once your basics are solid, you can implement advanced tactics for more performance.

6.1 Long-tail keywords

Long-tail keywords (longer, more specific search phrases) often have lower search volume, less competition, lower CPCs, and a higher conversion rate because they reflect more specific intent. For example “automatic pour-over coffee maker under $200” instead of “coffee maker”. Unbounce+1

6.2 Competitor keyword analysis

Look at what keywords your competitors are bidding on – this can reveal gaps or opportunities. Tools like SEMrush’s Advertising Research allow you to view competitor keyword lists. Semrush+1
Don’t simply copy; instead find what they might be missing, or how you can offer a better ad/landing page.

6.3 Use data from organic search and SEO

If you have strong organic traffic for certain keywords, you might bid on them in PPC too. SEMrush recommends blending SEO data for hidden PPC opportunity. Semrush

6.4 Match type strategy layering

A sophisticated strategy may use exact for core keywords, phrase for variants, and broad to discover new terms — each with different bids and performance monitoring. This layering allows you to maintain control while exploring. Riithink Digital Marketing

6.5 Smart bidding and dynamic keywords

As you collect historical performance data, you can leverage smart bidding strategies (e.g., target CPA, target ROAS) and dynamic keyword insertion in ad copy (to make ad copy reflect the search query), increasing relevance and CTR.

6.6 Geographic and device-based keywords

For businesses that operate regionally or have performance varying by device, you can craft keywords with geo modifiers (“Delhi laptop bag”, “Mumbai laptop backpack”) or device-based terms (“mobile phone deal Android”) and adjust bids accordingly.

7. Common keyword mistakes and how to avoid them

Avoiding these mistakes will save you wasted spend and frustration.

7.1 Chasing high volume at the expense of relevance

Many advertisers pick high-volume keywords believing “more impressions = more clicks = more conversions”. But volume alone is not enough. As one article puts it: “New advertisers get so excited about visibility… they think more impressions = more sales. So they use keyword research to add the highest-volume terms … which is exactly the wrong approach.” Semrush
Focus instead on keywords that are relevant, conversion-oriented, and aligned with your offer.

7.2 Neglecting negative keywords

Failing to add negative keywords means you’ll get irrelevant clicks that drain budget. As covered earlier, negative keywords are essential. Wikipedia+1

7.3 Poor keyword grouping leading to poor ad relevance

If you group too many unrelated keywords in an ad group, your ads can’t match them all well. You’ll lose relevance, CTR will drop, Quality Score will drop, CPC will rise. Use tight themes (STAGs). Semrush

7.4 Changing keywords too frequently

One Reddit user highlighted:

“If you are changing match types or adjust the keyword itself, then you are basically starting from scratch with that ‘new’ keyword… every change you make can affect overall performance.” Reddit
Meaning: give keywords enough time to accrue data before making drastic changes. Frequent changes hurt performance.

7.5 Ignoring landing page/ad copy alignment

Let’s say you bid on “cheap summer dresses” but your landing page only shows premium designer dresses at full price — mismatch. Relevance suffers. Make sure keyword → ad copy → landing page workflow is aligned.

7.6 Not monitoring or optimising keyword performance

Many advertisers set keywords and forget. But PPC is dynamic: competition changes, costs change, user behaviour shifts. As one blog puts it: “Keyword research is not something that only stops once a campaign goes live; … you’ll want to analyze keyword performance … and make changes.” Medium

8. Keyword performance metrics and what they tell you

To optimise keywords effectively, you need to understand what metrics to watch and how to interpret them.

8.1 Click-Through Rate (CTR)

CTR = (clicks ÷ impressions) × 100. High CTR often indicates that your ad and keyword are relevant to the user’s search. If CTR is low, you may need to improve ad copy, keyword or alignment.

8.2 Conversion Rate (CVR)

CVR = (conversions ÷ clicks) × 100. This tells you how many clicks convert. A keyword may have high clicks but low conversions → look at landing page, offer, or whether the user intent matches the keyword.

8.3 Cost Per Click (CPC) and Cost Per Conversion (CPA)

CPC tells you what you’re paying per click; CPA tells you what you’re paying to get a conversion. A keyword with very low CPC but very low conversion may still be worse than higher CPC but strong conversion.

8.4 Quality Score (for Google Ads)

Quality Score is Google’s metric combining keywords, ads and landing pages to assess relevance and expected performance. Higher Quality Score tends to lower CPCs and improve ad rank. Wikipedia

8.5 Return on Ad Spend (ROAS)

ROAS = revenue ÷ ad spend. Ultimately, keywords must contribute to acceptable ROAS (or whatever your business goal is). Monitoring ROAS by keyword (or keyword group) helps you allocate budget to what works.

8.6 Impression Share & Lost IS

This tells you how often your ad shows compared to how often it could (based on budget/bid). A keyword with high performance but low impression share may be constrained by budget. Consider increasing bids or budget.

9. Budgeting, bidding & scaling keyword strategy

Keywords don’t exist in isolation; they feed directly into budget and bid decisions. Here’s how to tie them together.

9.1 Allocate budget based on keyword performance

Identify your top-performing keywords (good conversion rate, acceptable CPA/ROAS). Allocate more budget to them. Conversely, reduce budget (or pause) for under-performing keywords. One article stresses “Move budget away from underperforming keywords and into the ones driving real results.” Unbounce+1

9.2 Adjust bids – higher for strong keywords, lower or pause weak ones

If a keyword is converting well at a good cost, you may want to increase your bid to capture more volume. If a keyword is costing too much per conversion, reduce the bid or pause it. Use device/location/time-of-day bid modifiers if you see performance differences.

9.3 Scaling with new keywords and match types

Once you have a proven core keyword set, you can scale by adding broader match types or new keyword themes, but do so carefully — set smaller bids, monitor performance, and if they perform well, expand further.

9.4 Seasonal and trend-based keyword budgeting

Some keywords may perform well only in certain seasons or trending contexts. Use historical data to adjust bids or pause during off-peak periods. Monitoring trends helps. Medium

9.5 Smart bidding and automation

Many PPC platforms offer automated bidding (target-CPA, target-ROAS). These algorithms utilise keyword performance data, device, location, time-of-day, audience behaviour to optimise bids. But a strong keyword foundation is still essential before relying fully on automation.

10. Real-world case examples & actionable checklist

To bring it home, let’s look at how the keyword strategy might look in practice, and then provide a checklist you can apply.

10.1 Example scenario

Suppose you are a company selling high-end running shoes in India.

Step 1: Brainstorm seeds: “running shoes”, “running sneakers India”, “best running shoes for men India”, “buy running shoes online India”, “trail running shoes India”.
Step 2: Use research tools — find CPC, volume, competition. Identify long-tail: “best trail running shoes size 11 India”, “lightweight men’s running shoes under ₹10,000”.
Step 3: Segment by intent/funnel:

Awareness: “what are trail running shoes”, “benefits of running shoes vs normal sneakers”
Consideration: “trail running shoes vs road running shoes India”, “top 5 running shoes 2025 India review”
Purchase: “buy trail running shoes online India”, “discount trail running shoes men India”.
Step 4: Negative keywords: “running shoe jobs”, “running shoe repair”, “running shoes kids” (if you don’t target kids)
Step 5: Match types: exact for core purchase keywords; phrase for variants; broad to discover (“men’s running shoes India”).
Step 6: Create ad groups: (A) Trail running shoes men India, (B) Road running shoes women India, (C) Discount running shoes India
Each with tightly matched ads & landing pages.
Step 7: Launch, monitor CTR, CVR, CPC, CPA. Suppose “buy trail running shoes online India” (exact) has high conversion at reasonable cost — increase budget & bid. Conversely “running shoes India” (broad) has many clicks but almost no conversions — reduce bid, refine match type or pause.
Step 8: Use competitor keywords: check what keywords top running shoe brands bid on (via SEMrush) and see if you can capture similar but underserved terms.
Step 9: Expand long-tail: maybe “best trail running shoes for heavy runner India”, “trail running shoes women size 7 India”
Step 10: Periodic review: monthly check of search term report to add negatives, pausing wasteful keywords, reallocating budget.

10.2 Actionable checklist

Use this as your working guide:

Define campaign goal & target audience.
Brainstorm seed keywords (based on products, services, audience language).
Use keyword tools to expand the list and check metrics (volume, CPC, competition, intent).
Categorise keywords by intent/funnel stage (informational, consideration, transactional).
Select match types (exact, phrase, broad) appropriate for each keyword.
Add negative keywords to exclude irrelevant queries.
Organise keywords into tightly-themed ad groups/campaigns (STAGs).
Map keywords → ad copy → landing page (ensure relevance across the chain).
Launch campaigns with bids based on expected value.
Monitor performance: CTR, CVR, CPC, CPA, ROAS, Impression Share.
From search term reports: identify irrelevant queries, add negatives, refine list.
Pause/adjust under-performing keywords; scale high-performers.
Expand keyword list using long-tail, competitor analysis, organic search data.
Adjust bids/budget for device, location, time-of-day, seasonality.
Regularly review (weekly for big spenders, monthly for smaller) and optimise.

11. Keywords & Quality Score – why relevance pays

One of the most powerful relationships in PPC is between keywords, ad relevance and Quality Score.

11.1 What is Quality Score?

Quality Score is a metric (in Google Ads) that reflects how relevant and effective your ad is: it includes expected CTR, ad relevance, landing page experience. Higher Quality Score can lead to lower CPCs and better ad positions. Wikipedia

11.2 How keywords feed into Quality Score

When your keywords match tightly to the search query → your ad and landing page appear more relevant → higher CTR and conversion.
When you group keywords into tight themes and have matching ads/landing pages → ad relevance improves.
When you exclude irrelevant keywords (via negatives) → fewer wasted impressions/clicks → improved metrics.
Therefore, keyword strategy and campaign structure directly impact Quality Score, CPM/CPC and ROI.

11.3 The cascading benefit

Better Quality Score → lower CPC → more efficient budget → more profit or allow you to bid more aggressively for more volume. This is why keyword relevance and structure are foundational.

12. Integrating keywords across channels & formats

Although we’ve focused on search ads, many keyword strategies apply beyond just Google Search.

12.1 Display, remarketing and keyword-targeted ads

While display advertising often uses audience or placement targeting, you can still use keyword insights (such as high-performing search keywords) to inform display/remarketing audiences. If a keyword indicates a particular intent or segment, you might create remarketing ads tailored for that segment.

12.2 Shopping campaigns

For e-commerce on platforms like Google Shopping or Bing, keywords feed into product titles, descriptions, feed optimisation. Use keyword research to ensure your product titles/descriptions reflect what users search so your ads show for relevant queries.

12.3 Video/YouTube campaigns

Keyword insights can inform video targeting (on YouTube) and ad copy. For example, if you identify high-intent keywords like “buy premium running shoes India”, you might create video content around “Why premium running shoes are worth it” and target similar keywords/topics.

12.4 Local search & mobile-first keywords

If you’re a local business (e.g., “Mumbai laptop repair shop”), you’ll use geo-modifiers (“near me”, “Mumbai”, “Delhi”), mobile-specific keywords (“mobile laptop repair service India”), and plan accordingly. Keyword research should reflect local intent.

13. Measuring and attributing keyword performance

Keywords are often siloed in campaigns, but their value can be broader. It’s worth thinking about attribution and cross-channel impact.

13.1 Multi-touch attribution

A converting user may have clicked a keyword at one stage (e.g., “best trail running shoes review”) then converted later via another keyword (“buy trail running shoes online India”). So consider how keywords across funnel stages contribute and how you credit them.

13.2 Keyword lifetime value & retention

Especially for subscription or recurring businesses, the value of a keyword may go beyond the first conversion. A keyword with higher lifetime value may warrant higher bid even if first-click metrics look similar.

13.3 Data-driven attribution & offline conversions

Where possible, integrate offline conversion data (calls, store visits, in-store sales) into your PPC platform so you can see which keywords lead to real business outcomes, not just clicks.

14. Future trends in keyword-based PPC

As the digital advertising landscape evolves, keyword strategy will need to adapt. Some trends to watch:

14.1 Voice search and conversational keywords

With more voice search (smart assistants, mobile), users are using longer‐form natural language queries (“What running shoe brand is best for Indian climate”). This means long-tail conversational keywords may rise in value.

14.2 AI and automated keyword suggestion

Tools are increasingly applying AI to suggest keywords, negative keywords, match type optimisation. For example, SEMrush mentions using AI for long-tail generation. Semrush
However, human oversight remains important to ensure relevance.

14.3 Privacy changes & audience targeting

As data privacy regulations evolve and cookies fade, keyword-based targeting (especially search intent) will become more valuable as a direct signal of user interest rather than relying purely on third-party audiences.

14.4 Cross-platform keyword strategy

Search is no longer just Google. Platforms like Amazon Ads, Microsoft Ads, TikTok Ads have keyword or keyword-equivalent targeting. A robust keyword strategy may span multiple platforms and adapt to each’s nuances.

15. Conclusion

Keywords are the foundation of PPC success. When done right, they allow you to:

Reach the right audience at the right time with the right message.
Maximise relevance, improve Quality Score, reduce CPCs.
Focus budget on high-intent, high-value searches.
Avoid wasted spend on irrelevant clicks.
Scale smartly and adapt to changing search behaviour.

On the flip side, neglecting your keyword strategy means you’re bidding blindly, paying for clicks that don’t convert, and missing opportunities for performance improvement.

If you take away only one thing from this guide: focus on relevance over volume. A few well-chosen, highly relevant keywords with strong intent and matching structure will usually outperform a huge list of generic keywords.
From there: research deeply, organise smartly, match ads/landing pages tightly, monitor ruthlessly, adjust consistently, and scale responsibly.