A search terms report shows the actual queries people typed before seeing or clicking your ads, as distinct from the keywords you targeted. It reveals where spend is going on irrelevant searches and surfaces valuable queries you had not thought to target.
The search terms report is the difference between what you think you are buying and what you are actually buying. Keywords are your intent; search terms are reality, and the gap is frequently large and expensive. Reviewing it regularly is one of the highest-return habits in paid search, because it both cuts waste and uncovers demand you were missing.
Example:
The report often shows a meaningful share of spend going to queries nobody would have chosen to target, alongside valuable terms worth adding deliberately.
How is a search terms report different from a keyword list?
Keywords are what you chose to target. Search terms are what people actually typed, which frequently differs and reveals both waste and opportunity.
How often should the search terms report be reviewed?
Regularly and continuously, since new queries appear constantly. Infrequent review allows wasted spend to accumulate unnoticed.