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Negative Keywords' Role in PPC

Negative keywords are search terms that prevent your PPC ads from being shown. Negative keywords are helpful to increase ROI by eliminating searches that are on the same subject and match the target keywords for the PPC ads, but have a non-commercial intent, so are unlikely to convert to commercial customers.

As your ads won't show up when those words are included in the search term. You can improve your campaign as you're not paying for clicks from visitors who are looking for products or services that you don't offer and at the same time your CTR (Click through Rate) will go up because you're improving your ability to target real prospects.

The higher the CTR, the more money Google or Yahoo stands to make from your campaign, so they'll show your ad more frequently even at the same bid price.