Keyword Strategy for Lead Generation: How to Choose Keywords That Convert

You’ve built your campaign structure. You understand which campaign types to use. Now comes the most important decision you’ll make in Google Ads: which keywords to target.

Get this wrong and you’ll waste your entire budget on unqualified traffic—people who click your ads but never hire you. Get it right and you’ll generate profitable leads at predictable costs, month after month.

Keyword selection is where most businesses either succeed or fail with Google Ads. This article shows you how to choose keywords that actually convert, which match types to use, and how to avoid the expensive mistakes that burn through budgets without generating customers.

The Three Types of Keywords by Intent

Not all keywords are created equal. Some keywords signal someone is ready to hire right now. Others signal they’re just researching. And some signal they have no intention of hiring anyone—they want to do it themselves.

Understanding keyword intent is the foundation of a profitable keyword strategy.

High-intent keywords are bottom-of-funnel searches where someone is ready to buy. Examples: “emergency plumber Los Angeles,” “hire divorce lawyer,” “AC repair near me,” “roofing company.” These searches signal urgency and buying intent. Someone searching “emergency plumber” isn’t browsing—they have water flooding their kitchen and need help immediately.

High-intent keywords cost more per click because everyone is bidding on them. But they convert at much higher rates, so your cost per customer is usually lower. Start here. 70-80% of your keyword list should be high-intent keywords.

Mid-intent keywords are research-phase searches. Examples: “best HVAC company,” “how to choose a lawyer,” “plumber reviews near me.” These people are comparing options, reading reviews, and building a shortlist. They’re not ready to hire today, but they might be ready in a week.

Mid-intent keywords cost less per click and convert at moderate rates. They’re worth including in your strategy—maybe 15-20% of your keyword list—but they shouldn’t be your focus early on.

Low-intent keywords are informational searches where people want to learn or do it themselves. Examples: “how to fix a leaky faucet,” “DIY plumbing repair,” “what is estate planning.” These people aren’t looking to hire anyone. They want instructions, definitions, or explanations.

Low-intent keywords are cheap, but they almost never convert for service businesses. Skip them entirely or add them to your negative keyword list so you don’t waste money on these clicks.

Here’s a tip that can save you months of trial and error: Sometimes working with companies or agencies that have experience in your category will give you a better starting point. They’ll already know which keywords work and which waste money in your industry. If you’re starting from scratch, consider working with an agency or freelancer who has category experience. At Pixelocity, we bring keyword lists from similar clients to new accounts, which lets us skip the expensive learning curve.

Using tools like Ahrefs or SEMrush is also helpful and a good investment. These tools show you which keywords competitors are bidding on, search volume data, and cost-per-click estimates. They’re not free, but they’re cheaper than learning by trial and error with your ad budget.

Match Types Strategy

Once you’ve identified keywords, you need to decide which match types to use. Match types control how closely a search query needs to match your keyword before your ad shows.

There are three match types: exact, phrase, and broad.

Exact match uses brackets: [emergency plumber]. This shows your ad only when someone searches for that exact keyword or very close variants (plurals, misspellings, same intent). Exact match gives you the most control and lowest wasted spend, but it also limits your reach.

Phrase match uses quotes: “emergency plumber”. This shows your ad when the phrase appears anywhere in the search, in that order. Someone searching “24 hour emergency plumber near me” would trigger your ad. Someone searching “plumber for emergency repairs” would not (phrase isn’t in order).

Broad match has no special syntax—just the keyword: emergency plumber. This shows your ad for anything Google thinks is related. “Burst pipe repair,” “plumbing help,” “water leak service,” even “home improvement contractor” might trigger your ad. Google decides, not you.

Here’s the important thing to understand: Match types are getting blended by Google. Even exact and phrase match aren’t as specific as they used to be. Google’s algorithm increasingly shows your ads for “close variants” that you might not consider close at all. So even if you’re using exact match, you need to continue looking at your search terms report after your ads start running to see what’s actually triggering your ads.

Which Match Types to Use When

Start with exact and phrase match only for the first 1-3 months. This gives you control. You’re not wasting money on irrelevant searches. You’re learning what actually converts in your market. Your budget goes further.

After month 4+, once you’re profitable, you can add broad match keywords carefully to discover new keyword opportunities. Broad match will show your ads for searches you never thought of, and sometimes those convert well. But monitor it closely. Check your search terms report weekly and add irrelevant searches to your negative keyword list.

Avoid broad match early on. Yes, broad match will get you more immediate traffic. But it takes a lot more data and conversions to start dialing in what’s working. Unless your budget is fairly substantial—think $5,000+/month—it’s generally better to use more specific keywords with exact and phrase match at the beginning. You’ll waste less money learning.

Building Your Keyword List

Let’s walk through how to actually build a keyword list for your business.

Start with 5-10 seed keywords. These are your core services—what you actually offer. If you’re a plumber, your seed keywords might be: plumber, plumbing repair, emergency plumber, drain cleaning, water heater repair. If you’re a lawyer, it might be: divorce lawyer, family law attorney, child custody lawyer.

Now expand using tools and research:

Use Google Keyword Planner (free inside Google Ads). Enter your seed keywords and it will suggest related keywords along with search volume and cost estimates.

Use Search Console data from Chapter 2. Look at which searches already bring you organic traffic. Those are proven searches in your market—add them to your paid keyword list.

Look at “People also ask” in Google search results. Search your seed keywords and scroll down to the “People also ask” section. These questions reveal what people are actually searching for.

Do competitor research. Search your main keywords and see which businesses are running ads. Visit their websites and see what services they emphasize. This tells you what keywords they’re likely targeting.

Add Geographic Modifiers

For local lead-gen businesses, geography is critical. Add location-based variations to your keywords:

“near me” (extremely common on mobile)
City names: “plumber Los Angeles,” “divorce lawyer Chicago”
Neighborhood names: “plumber Beverly Hills,” “lawyer Downtown Denver”
Surrounding cities you serve

Add Intent Modifiers

Intent modifiers are words that signal buying intent. Add these to your seed keywords:

“hire” → “hire plumber”
“emergency” → “emergency HVAC repair”
“cost” → “lawyer cost”
“best” → “best roofing company”
“reviews” → “plumber reviews”

These modifiers increase specificity and often improve conversion rates because they signal more intent.

Include Long-Tail Keywords

Long-tail keywords are 3-5 word phrases that are very specific. Examples: “emergency plumber Los Angeles 24 hour,” “affordable divorce lawyer near me,” “same day AC repair service.”

Long-tail keywords have lower search volume, but they convert at higher rates because they’re so specific. They also cost less per click because there’s less competition. A great long-tail keyword might only get 10 searches per month, but 5 of those might convert. That’s a 50% conversion rate.

Example Keyword List Building Process

Let’s say you’re a plumber in Los Angeles. Here’s how you’d build your list:

Seed keyword: plumber

Add geography: plumber Los Angeles, plumber near me, plumber LA

Add intent modifiers: emergency plumber, hire plumber, plumber cost, best plumber

Combine: emergency plumber Los Angeles, hire plumber near me, best plumber LA, 24 hour plumber Los Angeles

Add services: drain cleaning Los Angeles, water heater repair LA, pipe repair plumber, sewer line repair

Long-tail variations: emergency plumber Los Angeles 24 hour, affordable licensed plumber near me, same day plumber service LA

You end up with 30-50 keywords covering your core services with geographic and intent modifiers. That’s enough to start. You can always expand later.

Negative Keywords: Just as Important as Regular Keywords

Negative keywords are keywords you DON’T want to show for. They’re critical for preventing wasted spend.

Here’s how it works: You bid on “plumber.” Without negative keywords, your ad might show for “plumber jobs,” “plumber salary,” “DIY plumbing course,” “free plumber consultation.” Those clicks cost you money but never convert because those people aren’t looking to hire a plumber—they’re looking for a job, salary information, or free advice.

Setting up a negative keyword list at the beginning is essential. Create an account-level negative list where you’ll continuously add irrelevant terms as you discover them.

Day One Negatives

Add these negative keywords to every campaign from day one:

free
DIY
how to
jobs
careers
salary
wage
cheap (sometimes—depends on your positioning)
course
training
school
class
video
youtube (unless you want video traffic)
resume

These terms signal people who aren’t looking to hire anyone.

Build Your Negative List Weekly

Every week, review your search terms report in Google Ads. This shows you the actual searches that triggered your ads. You’ll find irrelevant searches—add them to your negative keyword list immediately.

In my furniture business, I’d spend 30 minutes every Monday morning reviewing search terms. I’d find things like “furniture disposal,” “donate furniture,” “furniture repair DIY,” “furniture warehouse jobs.” None of those people wanted to buy furniture. I’d add them as negatives, and my cost per lead would drop because I stopped paying for junk clicks.

Negative Match Types

Negatives also use match types:

Exact negative [keyword]: Only blocks that exact term
Phrase negative “keyword”: Blocks any search containing that phrase
Broad negative keyword: Blocks aggressively—any search related to that term

For most negatives, use phrase match. It gives you good coverage without being overly aggressive.

Common Keyword Mistakes to Avoid

Starting with broad match is the #1 mistake. Yes, you’ll get traffic fast. But you’ll waste most of your budget on irrelevant clicks. Start with exact and phrase, add broad later if needed.

Ignoring negative keywords bleeds your budget on junk traffic. Add negatives from day one and review search terms weekly.

Too many keywords creates list bloat. I’ve seen accounts with 500+ keywords across 3 ad groups. That’s unmanageable. Start with 30-50 high-intent keywords. You can always expand.

Targeting low-intent keywords because they’re cheap is a trap. A $1 click that never converts is more expensive than a $10 click that converts 30% of the time.

Not using Search Console data means you’re ignoring free keyword research from actual searches already bringing you traffic organically.

Copying competitor keywords blindly without understanding your own business. Just because a competitor bids on a keyword doesn’t mean it’s profitable for them—or relevant for you.

Keywords Drive Everything

Your keyword strategy determines who sees your ads, how much you pay, and whether you generate customers or waste money on tire-kickers.

Start with high-intent keywords that signal someone is ready to hire. Use exact and phrase match to maintain control. Build negative keyword lists from day one to block irrelevant traffic. Expand strategically once you’re profitable, not before.

Negative keywords are as important as your regular keywords—maybe more important. They’re the difference between a profitable campaign and one that bleeds money.

Next, we’ll cover ad copywriting—how to write ads that get clicks from the right people and ignore the wrong ones. Your keywords get you in front of the right audience. Your ad copy is what convinces them to click your ad instead of your competitor’s.