Relevance is the safety net that keeps Search Terms sensible - it's meaning, not just matching words.
What relevance does
Every term gets a 0-100% relevance score for how well it fits the keywords in its ad group. High relevance supports adding a term; low relevance supports blocking or reviewing it - unless performance proves otherwise. It's what stops a one-off fluke being added, or a clearly-relevant term being blocked before it's had a fair chance.
Match types, and why negatives are exact by default
Keywords you add default to exact match (short, safe terms may use phrase).
Negatives are exact by default too, so a negative can never accidentally carry a core money-word and gut a campaign. Phrase is available when you choose it; broad is never used for auto-applied negatives.
There are really two "match types" in play, and Search Terms keeps them separate: how a search matched your keyword, and how a new negative will be added. They're never confused.
RELATED ARTICLES
Positives - adding keywords
Promote proven search terms into keywords.
Negatives - blocking waste
Stop paying for terms that don't work.
