In my Adwords Guide, I’ve previously suggested that whenever you bid on a keyword on phrase match, you should also bid on the same keyword on exact match. I’ve also said that when you bid on a keyword on broad match, you should also bid on phrase match and exact match.
My argument was that Google rewards more relevant keywords by giving them a better Quality Score, so if somebody searches for blue widgets, you’ll get a better Quality Score if you have [blue widgets] on exact match than you would if you just had “widgets” on phrase match.
However, Google recently clarified their position on how the match type of the keyword impacts its Quality Score.
To quote them directly,
“Google maintains two types of Quality Scores: one that is used to compute your minimum cost-per-click (CPC) bids, and another that is used to determine your ad position. Neither is directly impacted by match type.
Quality Score for minimum CPC bids: If you were to add the same keyword three times to your ad group, each with a different match type, they would all have the same Quality Score. This means that identical keywords in your account will have the same minimum CPC bids, regardless of their match types. Note that it may take several hours for the system to update and synchronize the minimum CPC bids.
Quality Score for ad position: The Quality Score used to determine ad position depends on the relevance of your keyword to the search query. This Quality Score is often higher if the search query matches the keyword exactly. However, this does not depend on whether your keyword’s match type is broad, phrase, or exact. For example, the broad-match keyword tennis shoes would have the same Quality Score in relationship to the search query tennis shoes as it would if it were an exact match.”
So the minimum bid is totally unaffected by the keyword match type, and the Ranking Quality Score doesn’t take it into account either.
So there’s no point in using multiple match types, then? Well, it’s not as important as it used to be, but there is still a clear reason to do so. The keyword will almost certainly give a different conversion rate for different match types as well as having a different clickthrough rate. As a result, a click is worth a different amount to you, and so you should be bidding a different amount.
Here’s the process that I use now when I’m creating a new campaign. I’m selling widgets, so I bid on the term “widgets” on Exact and Phrase match. After a day or two, I look at the search term report, and see what the biggest terms that I was hitting on phrase match were. I add these into my keyword list on exact match, and adjust the bids based on the cost per conversion in order to maximise the conversions that I get for my money. I repeat the process until there’s virtually nothing coming through on phrase match.
Here’s an example:
| Search Term | Impressions | Clicks | CTR | Conversions | Conv. Rate | CPC | Cost | CPA |
|---|---|---|---|---|---|---|---|---|
| “widgets” | 175000 | 5000 | 2.9% | 115 | 2.3% | £0.50 | £2,500 | £21.74 |
| [widgets] | 25000 | 500 | 2.0% | 10 | 2.0% | £0.50 | £250 | £25.00 |
| Total | 200000 | 5500 | 2.8% | 125 | 2.3% | £0.50 | £2,750 | £22.00 |
I look at the search term report, and pick out the keywords that have got significant volumes of traffic.
| Search Term | Impressions | Clicks | CTR | Conversions | Conv. Rate | CPC | Cost | CPA |
|---|---|---|---|---|---|---|---|---|
| [widgets] | 25000 | 500 | 2.0% | 10 | 2.0% | £0.50 | £250 | £25.00 |
| [blue widgets] | 20000 | 1000 | 5.0% | 50 | 5.0% | £0.50 | £500 | £10.00 |
| [red widgets] | 20000 | 800 | 4.0% | 40 | 5.0% | £0.50 | £400 | £10.00 |
| [canadian widgets] | 15000 | 300 | 2.0% | 0 | 0.0% | £0.50 | £150 | |
| [free widgets] | 20000 | 400 | 2.0% | 0 | 0.0% | £0.50 | £200 | |
| “widgets” | 100000 | 2500 | 2.5% | 25 | 1.0% | £0.50 | £1,250 | £50.00 |
| Total | 200000 | 5500 | 2.8% | 125 | 2.3% | £0.50 | £2,750 | £22.00 |
I adjust the bids in order to equalise the cost per conversions, whilst ensuring that the daily spend is unchanged (in practise, this is a lot harder than it appears here!). I also add some new negative keywords, if I see anything that doesn’t represent what I’m selling.
| Search Term | Impressions | Clicks | CTR | Conversions | Conv. Rate | CPC | Cost | CPA |
|---|---|---|---|---|---|---|---|---|
| [widgets] | 25000 | 333.3 | 1.3% | 6.6664 | 2.0% | £0.33 | £111 | £16.67 |
| [blue widgets] | 20000 | 1667 | 8.3% | 83.33 | 5.0% | £0.83 | £1,389 | £16.67 |
| [red widgets] | 20000 | 1333 | 6.7% | 66.664 | 5.0% | £0.83 | £1,111 | £16.67 |
| “widgets” | 100000 | 833.3 | 0.8% | 8.333 | 1.0% | £0.17 | £139 | £16.67 |
| Total | 165000 | 4167 | 2.5% | 164.9934 | 4.0% | £0.66 | £2,750 | £16.67 |
I keep repeating the process. Over time, the traffic in the phrase match will fall, as more and more of it is moved into exact match, so the process needs repeating less often.
| Search Term | Impressions | Clicks | CTR | Conversions | Conv. Rate | CPC | Cost | CPA |
|---|---|---|---|---|---|---|---|---|
| [widgets] | 25000 | 333.3 | 1.3% | 6.6664 | 2.0% | £0.33 | £111 | £16.67 |
| [blue widgets] | 20000 | 1667 | 8.3% | 83.33 | 5.0% | £0.83 | £1,389 | £16.67 |
| [red widgets] | 20000 | 1333 | 6.7% | 66.664 | 5.0% | £0.83 | £1,111 | £16.67 |
| [new widgets] | 20000 | 150 | 0.8% | 4 | 2.7% | £0.17 | £25 | £6.25 |
| [designer widgets] | 10000 | 150 | 1.5% | 3 | 2.0% | £0.17 | £25 | £8.33 |
| [used widgets] | 10000 | 100 | 1.0% | 0 | 0.0% | £0.17 | £17 | |
| “widgets” | 60000 | 433 | 0.8% | 1 | 0.2% | £0.17 | £72 | £72.16 |
| Total | 165000 | 4166 | 2.5% | 164.6604 | 4.0% | £0.66 | £2,750 | £16.70 |
If you’ve read my guide, this is the complete opposite to the “throw everything at the wall and see what sticks” approach that I’ve advocated. In the main part, I combine both methods, throwing in every word that I can think of on exact and phrase match (and sometimes broad match), and add new exact match keywords in when I can see what I’ve missed.
Page last updated by Steve Baker on May 11, 2008 at 7:07 pm.
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In your list of widget keywords you added plural variations. You need not add an “s” to the end of every keyword on Google – they will show your ad either way.
It doesn’t on exact match – you only bid on the exact term.
However, I believe that you’re probably correct on phrase and broad match. But since I produce one keyword list, then add the quotes and brackets, it’s easier to include plurals on all three lists.
Steve
In my experience, even when you are operating with phrase and broad match Google can still miss plurals. Its a dangerous game to let AdWords pluralise everything for you. Just to be safe and not miss key pieces of traffic, I would always include terms in both plural and non-plural form.
Hi
Great article on the site, really useful.
Just curious in your opinion, is it best to use all 3 match types in one ad group? Or should you seperate them out per ad group?
I run a PPC campaign for one of my mates websites, and I want to make sure Im getting the max return I can for him.
I currently have adgroups set up for all 3 types of match types. So for example I have in the corporate memory stick adgroup:
corporate memory stick
“corporate memory stick”
[corporate memory stick]
Is this a waste of time? We tend to see that the phrases in speech marks and brackets get less searches but produce a better CTR, but the ones without either get the most searches.
I dont want to miss out on traffic, but neither do I want to pay the earth.
I know its a question on a campaign you cant see but is there any advice you can give me?
Thanks
Tim
Hi Tim,
Apologies for the delay in replying – we’ve been having a few technical issues…
I used to do exactly what you’re describing, but Google have recently explained how the matching types work in more detail.
The first thing to note is that it doesn’t impact your Quality Score. So if you are just bidding on corporate memory stick
on broad match, your advert will appear in the same places, with the same bids and positions that it would if you were
bidding the same on multiple match types (as you suggest).
So there’s no direct benefit to be gained. However, there is another reason to use multiple match types (though I haven’t
got around to adding this to my guide).
By bidding on individual terms on exact match, you can adjust the bids individually, rather than having one bid for all
keywords.
As a rule, if I’m not confident that I’ve got all the keywords I should be bidding on, I use broad match. I run a search
query report every day (at least to start with) and take any keywords with significant traffic, and put them in as exact
match or negative match, depending on whether I want them or not.
Then I can adjust their bids over time, as their performance dictates.
Eventually, there won’t be significant traffic on the broad match, so I can remove it.