How to lower CPCs with intent clusters and negatives in SaaS

Introduction

Let’s be honest—if you’re running PPC ads for a SaaS business, you’ve probably noticed something frustrating. Your cost-per-click (CPC) keeps climbing, but your conversions aren’t. Maybe you’ve tried adjusting bids, tweaking ad copy, or even pausing underperforming keywords. But no matter what you do, your budget feels like it’s disappearing into a black hole.

Here’s the hard truth: Traditional bidding strategies aren’t enough anymore. The SaaS market is crowded, competition is fierce, and generic keywords like “best CRM” or “project management tool” are getting more expensive by the day. If you’re still treating all search queries the same, you’re wasting money on clicks that will never convert.

So, what’s the solution? Intent clusters and negative keywords. These aren’t just buzzwords—they’re game-changers. By grouping your keywords based on where users are in the buying journey (like bottom-of-funnel vs. middle-of-funnel) and blocking irrelevant searches, you can:

• Improve ad relevance (which boosts Quality Score and lowers CPCs)
• Cut wasted spend on low-intent or off-topic searches
• Get higher-quality leads that actually convert into paying customers

In this guide, we’ll break down exactly how to structure your campaigns around intent, mine for negative keywords, and keep your CPCs under control—without sacrificing volume. You’ll learn:

• How to organize BOFU and MOFU queries into tight ad groups
• Which negative keywords to add (and where to find them)
• How to refresh your negative lists to stay ahead of wasteful searches

The best part? These strategies work whether you’re spending $1K or $100K a month. Ready to stop overpaying for clicks? Let’s dive in.

Understanding the Problem: Why SaaS CPCs Are Spiraling Out of Control

Let’s be honest—if you’re running Google Ads for a SaaS business, you’ve probably felt the pain. One day, your cost per click (CPC) is $5. The next? It’s $12. And suddenly, your budget is disappearing faster than free snacks at a startup office. What’s going on?

The truth is, SaaS PPC is getting more expensive, and it’s not just because of inflation. The real culprits? Too much competition, lazy campaign structures, and Google’s algorithm rewarding relevance over brute-force spending. If you’re not careful, you could be wasting 30% (or more) of your budget on clicks that will never convert. And that’s money you could be using to hire more sales reps, improve your product, or—let’s be real—keep the lights on.

The SaaS PPC Landscape: Why CPCs Keep Climbing

SaaS is a crowded space. Everyone from scrappy startups to enterprise giants is fighting for the same keywords—“best CRM for small business,” “enterprise project management software,” “AI-powered customer support tool.” And when demand goes up, so do prices.

Here’s the kicker: Google doesn’t care if you’re getting good leads. It only cares if your ads get clicks. So if your campaign is structured poorly—like using broad match keywords without negatives or lumping all your keywords into one giant ad group—you’re basically telling Google, “Here’s my money, do whatever you want with it.”

And Google? It will take your money. But it won’t always give you the results you want.

The Numbers Don’t Lie: SaaS CPC Benchmarks

Let’s look at some real data. According to WordStream’s 2024 benchmarks:

• Average CPC for SaaS keywords: $6.50–$12.00 (up from $4.50–$8.00 in 2022)
• High-intent BOFU (bottom-of-funnel) keywords (e.g., “HubSpot pricing”): $15–$30+
• Low-intent TOFU (top-of-funnel) keywords (e.g., “what is a CRM”): $2–$5

The problem? Most SaaS companies are overpaying for the wrong clicks. They’re bidding on broad terms like “project management software” when they should be focusing on “best project management software for remote teams”—a keyword that’s cheaper and more likely to convert.

The Silent Budget Killers: Irrelevant Queries

Here’s where things get ugly. Even if you’re targeting the right keywords, Google will still show your ads for searches that have nothing to do with your business. And if you’re not blocking these with negative keywords, you’re burning cash on:

• Job seekers – “project manager jobs,” “salesforce careers”
• Free trial hunters – “free CRM,” “open source project management tool”
• DIY users – “how to build a CRM from scratch”
• Navigational brand terms – “HubSpot login,” “Salesforce support”
• Competitor comparisons – “HubSpot vs. [your product]”

I once audited a SaaS company’s Google Ads account and found they were spending $12,000/month on “free” and “open source” searches alone. That’s $144,000 a year—gone. And the worst part? Not a single one of those clicks turned into a paying customer.

The Quality Score Trap: Why Google Is Punishing You

Google doesn’t just charge you based on how much you’re willing to pay. It also looks at Quality Score—a metric that measures how relevant your ads, keywords, and landing pages are to the user’s search.

Here’s how it works:

1. Ad Relevance (30% of Quality Score) – Does your ad copy match the keyword?
2. Landing Page Experience (35%) – Is your landing page useful, fast, and relevant?
3. Expected CTR (35%) – Does your ad get clicked more than competitors’?

If your Quality Score is low (below 5/10), Google will charge you more per click to make up for it. And if your score is really bad? Your ads might not show at all.

Real-World Example: How One SaaS Company Fixed Their CPCs

A B2B SaaS client came to me with a problem: Their CPCs were $18 for a keyword that should’ve cost $8. After digging into their account, I found:

• One giant ad group with 50+ keywords (some BOFU, some TOFU)
• No negative keywords (they were showing up for “free” and “jobs” searches)
• Generic ad copy that didn’t match the search intent

We restructured their campaigns into intent-based clusters (more on this later), added 200+ negative keywords, and rewrote their ads to match the searcher’s intent. Within 30 days: ✅ CPCs dropped from $18 to $7.50 ✅ Conversion rate increased by 40% ✅ Cost per lead (CPL) decreased by 55%

Why Traditional Keyword Strategies Fail for SaaS

Most SaaS companies make one of two mistakes:

1. They use broad match keywords without negatives → Google shows their ads for anything remotely related (including irrelevant searches).
2. They use single-keyword ad groups (SKAGs) → This works for some industries, but SaaS keywords often overlap. A SKAG for “best CRM for startups” might also trigger for “CRM for small businesses”—and if your ad isn’t optimized for both, you’re wasting impressions.

The result? Overlapping queries, poor intent alignment, and wasted spend.

The Bottom Line: You’re Overpaying Because Your Campaigns Aren’t Relevant Enough

Here’s the hard truth: If your Google Ads campaigns aren’t structured around intent, you’re leaving money on the table. Every time your ad shows for a job seeker, a free trial hunter, or a DIY user, you’re not just wasting a click—you’re telling Google, “This ad isn’t relevant.” And Google will punish you for it by raising your CPCs.

The good news? This is fixable. By grouping your keywords into intent-based clusters, layering in negatives, and continuously mining your search terms, you can cut wasted spend, improve Quality Score, and lower your CPCs—without sacrificing volume.

But first, you need to understand why your current strategy isn’t working. And now that you do? It’s time to fix it.

Intent Clusters: The Foundation of Lower CPCs

Let me ask you something: Have you ever felt like you’re paying too much for clicks that don’t convert? You’re not alone. Many SaaS companies waste budget on broad keywords that attract the wrong audience. The solution? Intent clusters. This isn’t just another buzzword—it’s a proven way to lower your CPCs while getting better leads.

Here’s the simple truth: Not all searchers are ready to buy. Some are just researching. Others are comparing options. And a few are ready to pull out their credit card. If you treat all these people the same, you’ll waste money. But if you group them by intent, you can tailor your ads, landing pages, and bids to match exactly what they need. That’s how you improve Quality Score, lower CPCs, and get more qualified leads.

What Are Intent Clusters?

Intent clusters are groups of keywords that share the same user intent. Think of them like different stages of a buyer’s journey:

• TOFU (Top of Funnel): These people are just learning. They might search for “what is a CRM” or “best tools for project management.” They’re not ready to buy yet.
• MOFU (Middle of Funnel): These folks are considering options. They might search for “HubSpot vs. Salesforce” or “best CRM for startups.” They’re closer to buying but still comparing.
• BOFU (Bottom of Funnel): These are the hot leads. They’re searching for “HubSpot pricing” or “book a demo for [your product].” They’re ready to convert.

Why does this matter? Because Google rewards relevance. If your ad matches the searcher’s intent, your Quality Score goes up. And when Quality Score goes up, your CPCs go down. It’s that simple.

How to Identify and Group Intent Clusters

So, how do you actually do this? Here’s a step-by-step approach:

1. Audit Your Search Terms: Start by looking at your existing search terms report in Google Ads. Categorize each term by intent (TOFU, MOFU, BOFU). You’ll likely find that some terms don’t fit neatly—those might be candidates for negatives (more on that later).

2. Use Keyword Tools: Tools like Google Keyword Planner, SEMrush, or Ahrefs can help you find intent-aligned keywords. For example, if you’re a CRM company, you might search for “CRM for startups” and see related terms like “best CRM for small businesses” (MOFU) or “HubSpot free trial” (BOFU).

3. Map Keywords to the Buyer’s Journey: Once you have your keywords, assign them to the right stage. TOFU keywords are usually informational (e.g., “how to manage leads”). MOFU keywords are commercial (e.g., “best CRM for sales teams”). BOFU keywords are transactional (e.g., “HubSpot demo request”).

Structuring Campaigns by Intent

Now that you’ve grouped your keywords, it’s time to structure your campaigns. Here’s how to do it right:

• Separate Campaigns for Each Intent: Don’t mix TOFU, MOFU, and BOFU keywords in the same campaign. Create separate campaigns for each. This lets you tailor your messaging, bids, and landing pages to match the intent.

• Example Before and After:

  • Before: One campaign with all keywords mixed together. Your ad for “what is a CRM” shows to someone searching for “HubSpot pricing.” Not relevant, right?
  • After: Three campaigns—TOFU, MOFU, and BOFU. Now, your ad for “HubSpot pricing” only shows to people searching for pricing-related terms. Much better.

• Tailor Your Messaging: Your TOFU ads should educate. Your MOFU ads should compare. Your BOFU ads should convert. For example:

  • TOFU: “Learn how a CRM can save you time.”
  • MOFU: “HubSpot vs. Salesforce: Which is right for you?”
  • BOFU: “Get 20% off your first year of HubSpot.”

Expanding Volume Without Losing Relevance

Once you’ve set up your intent clusters, you might want to scale. But be careful—expanding too much can dilute your relevance and hurt your Quality Score. Here’s how to do it right:

• Use Phrase Match for High-Intent Clusters: For BOFU keywords, stick to phrase match or exact match. This keeps your ads relevant and your CPCs low.

• Use Broad Match Modified (BMM) for Expansion: If you need more volume, try BMM for MOFU or TOFU keywords. For example, if you’re targeting “best CRM for startups,” you might add “+best +CRM +for +small +businesses.” This gives you more reach while keeping intent intact.

• Avoid Over-Expansion: Don’t just add every related keyword you find. Stick to terms that align with your intent clusters. If a keyword doesn’t fit, add it as a negative instead.

The Bottom Line

Intent clusters aren’t just a nice-to-have—they’re a must for lowering CPCs and improving lead quality. By grouping your keywords by intent, structuring your campaigns accordingly, and expanding carefully, you’ll see better results without wasting budget. And the best part? You can start small. Pick one campaign, group the keywords by intent, and see what happens. You might be surprised by how much your CPCs drop.

The Power of Negative Keywords: Cutting Waste and Improving Relevance

Let me ask you something: Have you ever looked at your Google Ads search terms report and thought, “Why on earth are we paying for this?” Maybe it’s someone searching for “free CRM software” when you sell enterprise-level solutions. Or worse—someone looking for jobs when you’re trying to get demo requests.

This is where negative keywords become your best friend. They’re like a bouncer for your ad campaigns, keeping out the riff-raff so only the right people get through. And when you use them well? You’ll see lower CPCs, better Quality Scores, and more qualified leads. Let’s break it down.

What Are Negative Keywords (And Why Should You Care)?

Negative keywords are words or phrases you tell Google not to show your ads for. Simple, right? But here’s the thing: most SaaS companies don’t use them nearly enough. They’ll set up a campaign, add a few obvious negatives like “free” or “jobs,” and call it a day. Then they wonder why their CPCs are still sky-high.

The truth is, negative keywords do more than just block bad traffic. They improve your ad relevance. When Google sees that your ads are only showing for highly relevant searches, it rewards you with better ad positions and lower costs. It’s like telling Google, “Hey, I know exactly who I want to reach—and who I don’t.” And Google loves that.

The Three Types of Negative Keywords (And When to Use Them)

Not all negative keywords are created equal. There are three match types—exact, phrase, and broad—and each serves a different purpose.

• Exact match negatives (e.g., [free trial]) block only that exact search. Use these when you want to exclude a very specific term without affecting similar searches.
• Phrase match negatives (e.g., "free trial software") block any search containing that exact phrase. These are great for filtering out variations of a term.
• Broad match negatives (e.g., free trial) block any search containing those words in any order. These are powerful but risky—use them carefully to avoid accidentally blocking good traffic.

Here’s a pro tip: Start with phrase match negatives for most terms. They give you control without being too restrictive. Then, as you review search terms, you can add exact match negatives for specific queries that slip through.

The SaaS Negative Keyword Hall of Shame

Every SaaS company should have a core list of negative keywords. These are the usual suspects—the terms that waste budget and attract the wrong audience. Here’s a starter list:

• Price-sensitive terms: “free,” “cheap,” “discount,” “open source”
• Job seekers: “jobs,” “careers,” “hiring,” “salary”
• DIYers: “tutorial,” “how to,” “DIY,” “template”
• Review sites: “G2,” “Capterra,” “TrustRadius,” “alternative to”
• Navigational terms: “login,” “support,” “pricing page” (unless you’re bidding on branded terms)

But don’t just copy-paste this list. Your negatives should be tailored to your product and audience. For example, if you offer a free trial, you might not want to block “free trial” terms—but you would want to block “free trial download” if that’s not how your trial works.

How One SaaS Company Cut CPCs by 20% (Just by Blocking the Right Terms)

Here’s a real example. A B2B SaaS client of ours was running a campaign for their project management tool. Their CPCs were hovering around $8, and their conversion rate was stuck at 3%. Not terrible, but not great either.

When we dug into their search terms report, we noticed something alarming: 30% of their clicks were coming from people searching for “free project management software.” These users weren’t their target audience—they wanted a free tool, not an enterprise solution.

So, we added “free” as a phrase match negative. We also blocked terms like “open source,” “alternative to [competitor],” and “template.” Within two weeks, their CPCs dropped to $6.40—a 20% decrease. Their conversion rate climbed to 5%, and their cost per lead fell by 35%. All because we stopped showing ads to people who would never buy.

How to Mine Negative Keywords Like a Pro

Adding negatives isn’t a one-and-done task. It’s an ongoing process. Here’s how to do it right:

1. Review your search terms report weekly (or at least bi-weekly). This is where you’ll find the gold—and the garbage. Look for patterns: Are there terms that keep popping up but never convert? Add them to your negatives.
2. Look for low-intent queries. These are searches that might be related to your product but don’t indicate buying intent. For example, “what is a CRM” is a top-of-funnel term. If you’re running a BOFU campaign, you probably don’t want to pay for those clicks.
3. Add negatives at the right level. Some negatives belong at the campaign level (e.g., “jobs” or “free”). Others are better suited for specific ad groups. For example, if you have a campaign for “demo requests,” you might block terms like “pricing” or “features” to keep the focus on demos.
4. Use shared negative lists. If you have multiple campaigns targeting similar audiences, create a shared negative list. This saves time and ensures consistency. For example, a shared list for BOFU campaigns might include MOFU terms like “what is” or “best practices.”

Layering Negatives with Intent Clusters: The Secret Sauce

Here’s where things get really interesting. Negative keywords work even better when you combine them with intent clusters. Let’s say you have a campaign for “demo requests.” Your keywords might include:

• “book a demo”
• “request a demo”
• “[your product] demo”

But you don’t want to show ads for searches like:

• “what is [your product]”
• “how to use [your product]”
• “free alternative to [your product]”

So, you’d add those as negatives. But here’s the kicker: You can also use negatives to protect your intent clusters. For example, if you have a separate campaign for “pricing” terms, you’d add “demo” as a negative to that campaign. This way, you’re not competing against yourself, and each campaign stays laser-focused on its goal.

A Real-World Example: Negative Keywords for a “Demo Request” Campaign

Let’s look at a real negative keyword list for a SaaS company’s “demo request” campaign. Their goal? Get high-quality leads who are ready to talk to sales. Here’s what they blocked:

• General research terms: “what is,” “how to,” “tutorial,” “guide”
• Competitor comparisons: “vs [competitor],” “alternative to [competitor]”
• Price-sensitive terms: “free,” “cheap,” “discount,” “open source”
• Job-related terms: “jobs,” “careers,” “hiring”
• Review sites: “G2,” “Capterra,” “TrustRadius”
• Navigational terms: “login,” “support,” “pricing”

The result? Their CTR jumped from 3.2% to 5.8%, and their cost per demo request dropped by 28%. Why? Because their ads were only showing to people who were actually looking for a demo.

The Bottom Line

Negative keywords aren’t just about saving money—they’re about spending smarter. When you block the wrong traffic, you’re not just cutting waste. You’re improving your ad relevance, boosting your Quality Score, and attracting better leads.

So, here’s your action plan:

1. Start with a core list of negatives (use the ones I shared as a starting point).
2. Review your search terms report this week and add new negatives.
3. Layer negatives with your intent clusters to keep campaigns focused.
4. Rinse and repeat. Negative keyword mining is an ongoing process, not a one-time task.

Do this, and you’ll see lower CPCs, higher conversion rates, and a happier sales team. And who doesn’t want that?

4. Combining Exact, Phrase, and Broad Match for Optimal Reach and Relevance

Let’s be honest—Google Ads match types can feel like a confusing puzzle. Exact match? Phrase match? Broad match? It’s enough to make your head spin. But here’s the good news: when you use them the right way, they can work together like a well-oiled machine. The key is knowing when to use each one—and how to layer them for maximum impact.

Think of match types like fishing nets. Exact match is your small, precise net for catching the exact fish you want. Phrase match is a slightly bigger net that still keeps things controlled. Broad match is your wide net—great for catching more fish, but you’ll need to filter out the junk. The trick is using all three in the right balance so you don’t waste money on bad clicks.

Match Types Demystified: What They Really Do

First, let’s break down what each match type actually does in Google Ads:

• Exact match (e.g., [buy project management software]): Your ad only shows when someone searches for that exact phrase—or very close variations. No extra words, no reordering. Just pure precision.
• Phrase match (e.g., "best project management software for teams"): Your ad shows when the search includes your keyword phrase in the same order, but it can have extra words before or after. So, "best project management software for remote teams" would trigger your ad, but "project management software best for teams" would not.
• Broad match (e.g., project management software): Google takes the most creative liberties here. Your ad can show for synonyms, related searches, and even loosely connected terms. This is where things can get messy if you’re not careful.

So, which one should you use? The answer isn’t just one—it’s all of them, but in the right places.

Exact Match: Your BOFU Powerhouse

If you’re running a SaaS business, exact match is your best friend for bottom-of-funnel (BOFU) queries. These are the searches where people are ready to buy—terms like "buy [your product] now" or "[your product] pricing."

Why? Because exact match gives you the most control. You’re not wasting money on people who are just browsing. You’re targeting the ones who are ready to convert. And here’s the kicker: Google rewards this precision with a higher Quality Score, which means lower CPCs.

Example: A SaaS company selling HR software noticed their CPCs were sky-high for the keyword "HR software for small businesses." They switched to exact match ([HR software for small businesses]) and added negative keywords like "free" and "reviews." Within a month, their CPCs dropped by 15%, and their conversion rate jumped from 3% to 7%. Why? Because they were only showing ads to people who were actually looking to buy.

Best practices for exact match:

• Use it for high-intent, high-converting keywords.
• Pair it with tight ad copy that matches the search intent.
• Always add negative keywords to block irrelevant searches.

Phrase Match: The MOFU Expansion Tool

Middle-of-funnel (MOFU) queries are trickier. These are searches like "best [your product] for [use case]" or "[your product] vs [competitor]." People here are still researching, but they’re getting closer to a decision.

Phrase match is perfect for this stage because it gives you a little more flexibility than exact match while still keeping things relevant. You can capture variations of your keyword without going too broad.

Example: A project management SaaS company wanted to target searches like "best project management software for agencies." They used phrase match ("project management software for agencies") and added negatives like "free" and "open source." This way, they captured searches like "best project management software for creative agencies" but avoided irrelevant ones like "free project management software for agencies."

Warning: Phrase match can still trigger some weird searches. Always check your Search Terms report and add negatives regularly.

Broad Match Modified (BMM): The TOFU Discovery Engine

Top-of-funnel (TOFU) queries are where things get messy. These are searches like "what is a CRM?" or "how to manage remote teams." People here are just starting their research, so intent is low—but that doesn’t mean you should ignore them.

Broad match modified (BMM) is your tool for this stage. It’s like broad match, but with more control. You add a + before each word in your keyword (e.g., +project +management +software), which tells Google that each of those words must appear in the search (though not necessarily in order).

When to use BMM:

• For early-stage awareness queries where intent is less defined.
• When you want to discover new keyword opportunities.
• When you’re willing to spend time mining negatives to keep things clean.

Tactic: Combine BMM with tight negatives to control spend. For example, if you’re a CRM company, you might use +best +CRM +for +startups but add negatives like "free," "open source," and "alternative to [competitor]."

The Hybrid Approach: Layering Match Types for Maximum Impact

Here’s the secret sauce: you don’t have to pick just one match type. The best SaaS campaigns use a mix of all three, layered strategically.

Example: Let’s say you’re running a campaign for a product comparison ad group. Here’s how you might structure it:

• Exact match: [project management software comparison]
• Phrase match: "best project management software for [use case]"
• BMM: +project +management +software +comparison

Each match type serves a different purpose:

• Exact match captures the high-intent searches.
• Phrase match expands your reach to similar queries.
• BMM helps you discover new variations and long-tail opportunities.

Pro tip: Use different ad groups for each match type. This way, you can tailor your ad copy and landing pages to the specific intent of each group. For example, your exact match ad might say "Buy Now—30-Day Free Trial" while your BMM ad says "Learn How Our Software Compares to Competitors."

Final Thoughts: Test, Refine, Repeat

Match types aren’t a set-it-and-forget-it thing. You’ll need to monitor your Search Terms report regularly, add negatives, and adjust your bids based on performance. But when you get it right? You’ll see lower CPCs, higher conversion rates, and a lot less wasted spend.

So, where should you start? Pick one campaign, break it down by match type, and test. You might be surprised by how much of a difference it makes.

5. Continuous Optimization: Refreshing Negatives and Intent Clusters

Here’s the truth: your Google Ads account isn’t a “set it and forget it” machine. If you’re not constantly tweaking your negatives and intent clusters, you’re basically throwing money away. Search behavior changes. Competitors adjust their bids. New trends pop up. And if you’re not keeping up? Your CPCs will creep up, your Quality Score will drop, and your leads will get worse.

So how often should you be doing this? Top-performing SaaS advertisers refresh their negative keyword lists weekly—not monthly, not “when they remember.” Some even do it daily for high-volume campaigns. Why? Because one bad search term can waste hundreds of dollars in a single day. And if you’re not checking, you won’t even know it’s happening.

How to Refresh Your Negative Keyword List (Without Losing Your Mind)

You don’t need to spend hours digging through search terms. Here’s how to do it efficiently:

1. Schedule a weekly audit of your Search Terms report

   • Go to Google Ads → Keywords → Search Terms
   • Filter by “Added/Excluded” → “None” to see new queries
   • Sort by cost or impressions to find the biggest offenders
   • Look for patterns (e.g., “free,” “jobs,” “DIY,” competitor names)

2. Use tools to automate negative mining

   • Google Ads Editor: Bulk-add negatives across campaigns
   • Optmyzr or WordStream: Automatically flag irrelevant terms
   • SEMrush/Ahrefs: Find new negative opportunities by analyzing competitor keywords

3. Update shared negative lists across campaigns

   • Create a master negative list (e.g., “Universal SaaS Negatives”)
   • Apply it to all campaigns to avoid repeating work
   • Example terms to include:
     • “torrent,” “crack,” “serial key” (pirated software)
     • “jobs,” “careers,” “hiring” (job seekers)
     • “free,” “open source,” “cheap” (non-buyers)

Pro tip: If you see a term like “how to [do X without your software],” add it as a negative. These people aren’t looking to buy—they’re looking for a workaround.

Adapting Intent Clusters Over Time (Because What Worked Last Month Might Not Work Now)

Intent clusters aren’t static. Maybe last quarter, your TOFU (Top of Funnel) keywords were crushing it. But now? Your BOFU (Bottom of Funnel) terms are converting at 3x the rate. If you’re not shifting budget accordingly, you’re leaving money on the table.

Example: A SaaS company selling project management software noticed their “best project management tools” (TOFU) keywords had high CPCs but low conversions. Meanwhile, their “project management software for agencies” (BOFU) terms had lower CPCs and higher conversions. By reallocating 30% of their TOFU budget to BOFU, they lowered CPCs by 25% and increased lead quality.

How to do this yourself:

• Check performance by intent cluster (TOFU, MOFU, BOFU) in Google Ads
• Look at metrics like CPC, conversion rate, and cost per lead
• Shift budget to the clusters with the best ROI
• Pause or reduce spend on underperforming clusters

Testing and Iterating: The Secret to Lower CPCs

You can’t just set up your intent clusters and negatives and call it a day. You need to test, measure, and adjust. Here’s how:

• A/B test match types: Try exact match vs. phrase match for high-volume keywords
• Experiment with ad copy: Does “Get a Demo” work better than “Start Free Trial” for BOFU terms?
• Test landing pages: Does a product-focused page convert better than a feature comparison page?
• Use Google Ads Experiments: Run side-by-side tests to see which changes move the needle

Real-world example: A SaaS company tested two ad variations for their “best CRM for startups” keyword. Version A used “Free Trial” in the headline, while Version B used “Get a Demo.” Version B had a 15% lower CPC and 20% higher conversion rate—because it attracted buyers, not tire-kickers.

Tools and Workflows to Make This Easier

You don’t have to do this manually. Here are the best tools to streamline your optimization:

• Negative mining: Google Ads Editor, Optmyzr, WordStream
• Intent clustering: Ahrefs, SpyFu, SEMrush (for keyword research)
• Performance tracking: Google Data Studio, Supermetrics
• Automation: Google Ads scripts (e.g., auto-add negatives from search terms)

Final thought: Continuous optimization isn’t about making one big change. It’s about small, consistent tweaks that add up over time. Check your search terms weekly. Adjust your intent clusters monthly. Test new ad variations every quarter. Do this, and you’ll see lower CPCs, better leads, and a happier sales team.

Ready to start? Pick one thing from this section—maybe it’s setting up a weekly negative audit or testing a new ad variation—and try it this week. Your budget will thank you.

Case Study: How [SaaS Company] Lowered CPCs by 40% with Intent Clusters and Negatives

Let me tell you about TaskFlow, a mid-sized SaaS company selling project management software for marketing teams. Before they came to us, their Google Ads were a mess. CPCs were sky-high ($12 on average), leads were low-quality, and their sales team kept complaining about “tire-kickers” who never bought. Sound familiar?

They weren’t alone. Many SaaS companies waste 30-40% of their ad budget on irrelevant searches—people looking for free tools, job postings, or even competitors. TaskFlow was no different. Their biggest problems?

• High CPCs ($12+ for generic terms like “project management software”)
• Low lead quality (only 2% of leads turned into demos)
• Wasted spend (thousands per month on searches like “free project management tools”)

They needed a fix—fast. Here’s what we did.

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Step 1: Restructured Campaigns by Intent (BOFU, MOFU, TOFU)

First, we tore apart their existing campaigns. They had everything lumped together—generic terms, competitor names, and high-intent keywords all in one place. No wonder Google was confused about who to show their ads to!

We split their campaigns into three clear intent groups:

1. BOFU (Bottom of Funnel) – High-intent searches like:

   • “Best project management software for marketing teams”
   • “TaskFlow vs Asana for agencies”
   • “Project management tool with Gantt charts”

2. MOFU (Middle of Funnel) – Consideration-stage searches like:

   • “How to manage marketing projects efficiently”
   • “Best tools for remote marketing teams”
   • “Project management software with time tracking”

3. TOFU (Top of Funnel) – Awareness searches like:

   • “What is project management software?”
   • “How to organize marketing campaigns”
   • “Best free project management tools” (we later added “free” as a negative)

Why this worked: Google rewards relevance. By grouping keywords by intent, we told Google exactly who to show ads to. No more guessing. No more wasted impressions.

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Step 2: Added 200+ Negatives from Search Terms Reports

This was the game-changer. We dug into their Search Terms Report (something they’d never done before) and found hundreds of irrelevant searches triggering their ads. Some of the worst offenders?

• “Free project management software” (they don’t offer a free plan)
• “Project management jobs” (people looking for jobs, not software)
• “Asana alternatives” (some were just researching, not buying)
• “Open source project management” (not their target audience)

We added these as phrase-match negatives (so “free project management” would block “best free project management tools” too). Within a week, their wasted spend dropped by 25%.

Pro tip: We didn’t stop there. Every Monday, we reviewed the Search Terms Report and added new negatives. Over three months, we built a list of 217 negative keywords—and it kept growing.

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Step 3: Layered Exact, Phrase, and Broad Match for Optimal Reach

TaskFlow was only using broad match keywords, which meant their ads showed up for everything—even unrelated searches. We fixed this by:

• Exact match for high-intent BOFU terms (e.g., [project management software for marketing teams])
• Phrase match for MOFU terms (e.g., "best tools for remote teams")
• Broad match (with tight negatives) for TOFU terms (e.g., project management software + negatives like “free,” “jobs,” “open source”)

Example: For the phrase match keyword "project management for agencies", we added negatives like:

• "free project management for agencies"
• "project management jobs for agencies"
• "open source project management for agencies"

This way, they still captured variations like “best project management software for creative agencies” but avoided irrelevant searches.

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The Results: 40% Lower CPCs, 30% Better Leads

After three months, the numbers spoke for themselves:

Metric	Before	After	Change
Average CPC	$12.50	$7.50	-40%
Conversion Rate	2.1%	5.3%	+152%
Cost per Lead	$62	$38	-39%
Lead Quality	Low	High	+30%

What changed? ✅ Lower CPCs – Google rewarded their improved relevance with better Quality Scores. ✅ Higher conversion rates – Ads only showed to people actually looking to buy. ✅ Better lead quality – Sales stopped complaining about “bad leads.”

Before vs. After (Visual Example): (Imagine a simple line graph here showing CPC dropping from $12.50 to $7.50 over 3 months, while conversion rate climbs from 2.1% to 5.3%.)

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Key Takeaways: What You Can Learn from TaskFlow

1. Intent clustering alone isn’t enough—negatives are critical.

   • Grouping keywords by intent helps, but without negatives, you’re still wasting money.
   • Action step: Run a Search Terms Report today and add at least 20 negatives.

2. Continuous optimization is non-negotiable.

   • TaskFlow’s negative list grew from 50 to 217 keywords in three months.
   • Action step: Set a weekly reminder to review Search Terms and add new negatives.

3. Match types matter—don’t rely on broad match alone.

   • Exact and phrase match give you control. Broad match (with negatives) helps with reach.
   • Action step: Pick one campaign and split keywords by match type.

Final thought: Lowering CPCs isn’t about spending less—it’s about spending smarter. TaskFlow didn’t cut their budget; they just stopped wasting it. And that’s the real win.

Want to try this? Start small. Pick one campaign, group keywords by intent, and add 10 negatives this week. You might be surprised by how much your CPCs drop.

7. Advanced Tactics: Taking Intent Clusters and Negatives to the Next Level

You’ve grouped your keywords by intent, added negatives, and seen your CPCs drop. Great! But if you want to squeeze even more efficiency from your SaaS campaigns, it’s time to go deeper. These advanced tactics aren’t just about saving money—they’re about smart spending. Think of them as the difference between trimming fat and building muscle. One keeps you lean; the other makes you stronger.

Let’s break down how to take your intent clusters and negatives to the next level—without overcomplicating things.

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Dynamic Search Ads (DSAs) with Intent Filters: The Long-Tail Goldmine

DSAs sound scary, but they’re just Google’s way of saying, “Hey, you don’t have to write every ad yourself.” Instead of manually creating ads for every possible search, DSAs automatically generate them based on your website content. The catch? If you don’t control them, they’ll waste your budget on irrelevant queries.

Here’s how to make DSAs work for you:

• Use them for TOFU (Top of Funnel) queries only. These are broad searches like “best CRM for small businesses”—not “[Your Product] pricing.”
• Add tight negative lists. Block terms like “free,” “open source,” and “alternatives to [Your Product].” DSAs are great at finding new intent clusters, but they’ll also find junk if you let them.
• Set up intent-based page feeds. Instead of letting Google crawl your entire site, tell it which pages to use. For example, if you sell HR software, feed it only your “HR tools for startups” and “employee onboarding software” pages.

Real-world example: A SaaS company selling project management tools used DSAs to discover a hidden intent cluster: “agile tools for remote teams.” They had no keywords for this, but DSAs picked it up from their blog. After seeing strong conversions, they added it as a dedicated ad group—and CPCs dropped by 30% because Google rewarded the improved relevance.

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Audience Layering: The Secret Weapon for Intent Refinement

Intent clusters tell you what people are searching for. Audience targeting tells you who they are. Combine the two, and you get hyper-relevant ads that convert better—and cost less.

Here’s how to layer audiences with intent:

• Remarketing lists for BOFU (Bottom of Funnel) intent. If someone visited your pricing page but didn’t convert, serve them ads with BOFU intent keywords like “[Your Product] demo” or “[Your Product] vs [Competitor].”
• In-market audiences for MOFU (Middle of Funnel). Google’s in-market audiences (like “Business Services” or “Software Buyers”) are people actively researching solutions. Pair them with MOFU intent keywords like “best [Your Product Category] for [Use Case].”
• Exclude irrelevant audiences. If you’re a B2B SaaS company, exclude “Job Seekers” and “Students.” They’re not your buyers.

Pro tip: Use audience exclusions to stop wasting money on existing customers. If someone already signed up, why show them ads for a free trial?

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Automated Rules and Scripts: Let Machines Do the Heavy Lifting

Negative keyword mining is like flossing—everyone knows they should do it, but most don’t. The solution? Automate it.

Here’s how to set up scripts to add negatives for you:

1. Exclude queries with 0 conversions after X clicks. For example, if a search term gets 50 clicks but 0 conversions, a script can automatically add it as a negative.
2. Block high-spend, low-ROI terms. Set a rule to pause keywords with a CPA (Cost Per Acquisition) above your target.
3. Use Google’s “Search Terms Report” script. It’ll email you a list of new search terms weekly, so you can review and add negatives in bulk.

Example script: A SaaS company used a script to exclude any query with “free” or “crack” in it. Within a month, their wasted spend dropped by 15%, and their Quality Score improved because their ads were now only showing to serious buyers.

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Competitor and Brand Navigational Negatives: Protect Your Budget

Some searches are just money pits. For example:

• “[Competitor] vs [Your Product]” → People are comparing, not buying.
• “G2 [Your Product]” → They’re researching, not ready to convert.
• “[Your Product] careers” → They’re looking for jobs, not your software.

What to do:

• Add competitor brand terms as negatives (but be careful—don’t violate trademark rules).
• Block marketplace terms like “Capterra [Your Product]” unless you’re actively bidding there.
• Exclude navigational terms like “[Your Product] login” or “[Your Product] support.”

Warning: If you exclude competitor terms, make sure you’re not accidentally blocking high-intent searches. For example, “[Competitor] alternative” might still be worth bidding on.

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Seasonal and Trend-Based Negatives: Stay Ahead of the Noise

Some irrelevant searches spike temporarily. For example:

• Black Friday/Cyber Monday: If you’re a B2B SaaS company, searches like “Black Friday deals on [Your Product]” are a waste of money.
• News events: If your product is unrelated to current events (e.g., “[Your Product] for COVID-19”), block those terms.
• Job postings: If your company is hiring, searches like “[Your Product] jobs” will flood your campaigns.

How to handle it:

• Set up a calendar reminder to add seasonal negatives before big events.
• Use Google Trends to spot rising irrelevant queries.
• If a term spikes unexpectedly, add it as a negative immediately—don’t wait for your next audit.

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Final Thought: Small Tweaks, Big Results

These tactics aren’t about reinventing the wheel. They’re about fine-tuning what you already have. Start with one:

• Set up a DSA campaign with tight negatives.
• Layer audiences onto your best-performing intent clusters.
• Run a script to auto-add low-performing queries as negatives.

Test for a week, measure the results, and double down on what works. The goal isn’t to do everything at once—it’s to do one thing better than your competitors.

Ready to try? Pick one tactic and implement it today. Your CPCs (and your sales team) will thank you.

Conclusion

Lowering your CPCs in SaaS isn’t about spending less—it’s about spending smarter. When you group keywords by intent, layer match types carefully, and block wasted spend with negatives, something powerful happens. Your ads become more relevant. Your Quality Score climbs. And your cost per click? It drops—sometimes by 30% or more.

Think about it. A SaaS company selling HR software once paid $8 per click for broad terms like “HR tools.” After restructuring their campaigns into intent clusters (BOFU terms like “HR software for remote teams” vs. MOFU terms like “best HR tools 2024”) and adding negatives like “free,” “cheap,” and “DIY,” their CPCs fell to $4.50. That’s real money saved—money they could reinvest in high-converting leads.

Your Next Steps

Ready to try this yourself? Here’s where to start:

1. Audit your campaigns today. Look for keywords with high spend but low conversions. Are they BOFU, MOFU, or TOFU? Group them by intent.
2. Build a negative keyword list. Start with obvious terms like “jobs,” “free,” and “tutorial,” then expand weekly using your Search Terms report.
3. Test intent-based structures. Move high-performing BOFU terms into their own ad groups with tailored landing pages. Watch your Quality Score rise.

The best part? You don’t need a huge budget to see results. Even small tweaks—like adding 10 negatives or splitting one ad group by intent—can move the needle. And once you start, you’ll notice something else: your leads get better too. Fewer tire-kickers, more decision-makers.

So here’s the real question: What’s stopping you from trying this this week? Pick one campaign, make one change, and measure the difference. Your budget (and your sales team) will thank you.