📊 OTTO PPC Search Term Waste: Match Type Severity Tiers

Camilo Aponte

Camilo Aponte

Last updated on Sep 30, 2026

OTTO PPC classifies low-performing search terms at two severity levels — red for broad match and yellow for phrase or exact match — and recommends a different action for each. This article explains what each color tier means and the steps you should take to resolve flagged waste.

📋 What Is Search Term Waste in OTTO PPC?

Search Term Waste refers to ad spend on search terms that are not converting or are performing below your target thresholds. OTTO PPC identifies these terms in the Search Term Waste audit table and assigns a severity level so you can prioritize which issues to fix first.

📊 How Match Type Determines Severity

When OTTO PPC identifies a low-performing search term, it checks the match type of the keyword that triggered that term. Match type controls how broadly your keyword can match user queries:

  • Broad match: your keyword can activate ads for a wide range of loosely related queries.
  • Phrase match: your keyword triggers queries that contain your keyword phrase in the same order.
  • Exact match: your keyword triggers only queries that match it precisely.

Because broad match keywords can generate spend across far more unrelated queries, OTTO PPC assigns a higher severity when the triggering keyword uses broad match.

🔴 Red Severity — Broad Match Waste

A red severity flag means the low-performing search term was triggered by a broad match keyword. Broad match is the most permissive match type and the highest-risk source of wasted spend, so red-severity items require immediate attention.

What to do with a red-severity term

  1. Review the flagged search term and confirm it is irrelevant or underperforming against your targets.
  2. Add the search term as a negative keyword to stop future spend on it.
  3. Consider narrowing the triggering keyword's match type from broad to phrase or exact to reduce similar waste on future queries.

Addressing red-severity items first delivers the largest reduction in wasted ad spend.

🟡 Yellow Severity — Phrase and Exact Match Waste

A yellow severity flag means the low-performing search term was triggered by a phrase match or exact match keyword. These match types are more controlled, so the risk is lower — but the term is still consuming budget without sufficient return.

What to do with a yellow-severity term

  1. Review the flagged search term to confirm it is underperforming against your targets.
  2. Add the search term as a negative keyword if it is clearly irrelevant to your offering.
  3. If the term shows some conversion potential, adjust your bid strategy or ad copy before excluding it entirely.

Yellow-severity items represent a secondary pass — resolve red items first, then work through yellow to fine-tune campaign efficiency.

🛠️ How to Review Search Term Waste in OTTO PPC

  1. Open OTTO PPC and navigate to the Search Term Waste audit table.
  2. Locate the Severity column — red flags indicate broad match waste, yellow flags indicate phrase or exact match waste.
  3. Sort or filter by severity to prioritize red-severity items first.
  4. Select any flagged term to view its triggering keyword, the keyword's match type, and OTTO's recommended action.
  5. Apply the recommended action — add as a negative keyword or adjust the match type — directly from the audit table.

The audit table updates automatically after you apply an action, so your remaining item count reflects only unresolved waste.

🎯 You now know how OTTO PPC's match-type severity tiers help you prioritize Search Term Waste — tackle red-severity broad match items first for the highest budget impact, then work through yellow-severity phrase and exact match terms to sharpen campaign performance.