Google Ads Expands Negative Keywords for Performance Max & Google Tag Manager Enhancements: What You Need to Know

If you're running digital ad campaigns, keeping up with Google’s frequent updates is essential. Whether you’re a business owner managing ads yourself or working with a Google advertising agency in Poole, these changes can significantly impact how your campaigns perform.

Recently, Google has introduced two important updates:

A massive increase in the negative keyword limit for Performance Max (PMax) campaigns

A change to Google Tag Manager (GTM) that affects how tracking events are processed

Both updates aim to give advertisers more control and efficiency over their campaigns. But how will they affect your advertising strategy, and what should you do to prepare? Let’s break it down.

Google Expands Negative Keyword Limits for Performance Max

One of the biggest challenges advertisers faced with Performance Max campaigns was the 100 negative keyword limit. This restriction often meant businesses couldn’t fully refine their targeting, leading to wasted ad spend on irrelevant clicks. Now, Google has increased the limit to 10,000 negative keywords, putting PMax in line with Search campaigns.

This change provides far greater flexibility, helping businesses exclude low-quality traffic and improve conversion rates.

Why Negative Keywords Matter in PMax

Performance Max campaigns use machine learning to optimise ad placements across Google’s entire ecosystem – Search, Display, YouTube, Discover, and more. While this can improve reach, it also means advertisers have less control over where their ads appear.

Negative keywords help by preventing ads from showing up for irrelevant or low-intent searches, ensuring your budget is spent more effectively. For example, if you're a Google advertising agency in Poole offering paid ad management, you might want to exclude searches like:

“Free Google Ads help” (if you don’t offer free services)

“How to run Google Ads myself” (if you target businesses looking for expert management)

Competitor names (if you don’t want to bid on them)

By strategically using negative keywords, advertisers can refine their audience, improving both conversion rates and return on ad spend (ROAS).

How to Use the New Negative Keyword Limits Effectively

While 10,000 negative keywords offer greater flexibility, it’s important to use them strategically. Here’s what to keep in mind:

Prioritise High-Impact Keywords – Start by excluding searches that are consistently irrelevant and low-converting.

Use Match Types Carefully – Broad match negatives might exclude too many relevant searches, while exact match can be too restrictive. Find a balance.

Monitor Search Terms Regularly – Performance Max doesn't provide the same granular keyword data as Search campaigns, so reviewing performance reports is key.

By leveraging these best practices, businesses can ensure their Performance Max campaigns are more targeted, cost-effective, and aligned with their goals.

Google Tag Manager Update: What’s Changing?

Another major update is coming to Google Tag Manager (GTM). Starting April 10, 2025, GTM containers that use Google Ads and Floodlight tags will automatically load the Google Tag first before sending events.

Why This Matters for Advertisers Currently, Google Tag Manager sends events before loading the Google Tag. While this method works, it sometimes leads to inconsistent data tracking. By reversing the process, Google aims to:

Improve tracking reliability

Increase the volume of collected data

Ensure event consistency across platforms

For businesses relying on accurate tracking to measure ad performance, this change means better data accuracy, reducing potential discrepancies between Google Ads and Google Analytics.

Key Benefits of the GTM Update

Simplified Setup – Advertisers can now enable enhanced conversions, cross-domain tracking, and Autoevents with a single click from the Google Tag settings page.

Better Data Quality – The update ensures all events follow a consistent tagging process, reducing data loss or misattributed conversions.

Automatic User-Provided Data Collection – If a business has agreed to Google’s customer data Terms of Service, User-Provided Data collection will now apply automatically across all events.

What Businesses Need to Do Before April 10, 2025

To ensure a smooth transition, Google recommends:

Adding the Google Tag to your GTM container – This lets advertisers preview how the changes will impact tracking.

Reviewing existing event tags – Checking if any adjustments are needed to maintain consistent data tracking.

Monitoring performance after the update – Keeping an eye on conversion tracking accuracy and making tweaks if necessary.

Businesses relying on Google advertising services in Poole should consult their agency or internal marketing team to ensure their tracking setup aligns with the new changes.

Comparing These Updates to Other Attribution Models & Tracking Systems

While these updates improve campaign control and tracking accuracy, they also highlight how Google is shifting toward more automation and data centralisation. Negative Keyword Limits vs Other Control Methods Before this update, advertisers could use brand exclusions, account-level negative keywords, and audience exclusions to refine targeting.

While these methods are still useful, the expanded negative keyword limit provides granular control without needing extra exclusions.

Pros of the Update:

Greater flexibility in excluding unwanted traffic

More control over ad placements in Performance Max

Reduces wasted ad spend on irrelevant searches

Cons of the Update:

Requires ongoing monitoring and management

Negative keywords might conflict with machine learning optimisation

Google Tag Manager Changes vs Traditional Event Tracking

Previously, many advertisers relied on manual event tracking or third-party scripts. The update simplifies implementation by ensuring the Google Tag loads first, reducing the risk of tracking errors.

Pros of the Update:

More accurate and reliable tracking

Automatic compliance with Google’s latest data collection policies

Easier access to advanced tracking features

Cons of the Update:

Businesses unfamiliar with GTM might need expert guidance

Requires adjustments to existing setups before April 2025

Real-World Example: How a Business Can Use These Updates

Let’s say a local eCommerce business in Poole runs a Performance Max campaign to drive sales for a new product line.

Before the Updates:

Their campaign wasted budget on irrelevant search terms due to the 100 negative keyword limit.

Their Google Tag Manager setup occasionally failed to track conversions correctly, leading to data inconsistencies.

After the Updates:

They add 500+ negative keywords, excluding irrelevant traffic and saving ad spend.

Their updated GTM setup ensures all purchase events are tracked correctly, improving campaign reporting and decision-making.

As a result, they achieve a higher ROAS while making data-driven optimisations to scale their campaigns effectively.

Why These Updates Matter

Both the Performance Max negative keyword expansion and Google Tag Manager update reinforce Google’s commitment to better campaign control and tracking accuracy. For businesses working with a Google advertising agency in Poole, these updates present new opportunities to refine ad targeting and improve conversion tracking.

Ensuring proper implementation will help advertisers maximise ad spend, gain clearer insights, and drive better results in an increasingly competitive digital landscape. Would you like expert guidance on ad strategy and tracking updates? Speak with our Google Ads specialists today to optimise your campaigns!