Broad Match Versus Exact Match: How Does Placement Work

[rustybrick]

I haven't touched AdWords, as in running a campaign, since it first started. My question, is probably basic, so here it is.

I set up an AdWords campaign for a client. I want to be very specific about the keywords I go for. So I used exact match, i.e. [keyword phrase]. Now I want to know, if a competitor is using broad match and pays a higher CPC then what I am paying on exact match, will the broad match be placed higher?

The reason I ask is because, when entering in the keywords in exact match form, they ask for the max cpc. So they use traffic estimator and tell you how much to bid. Most say 5 cents.

Does this question make sense? I feel like such a newbie, well I am to this. :)

[AdWordsRep]

I set up an AdWords campaign for a client. I want to be very specific about the keywords I go for. So I used exact match, i.e. [keyword phrase]. Now I want to know, if a competitor is using broad match and pays a higher CPC then what I am paying on exact match, will the broad match be placed higher?

rustybrick, this could evolve into a long and complex answer if I let it, so I will try to be brief, and only hit the high points. :)

The short answer is: 'it depends'. The longer answer revolves around which advertiser's keyword has the better 'Rank Number'.

Basically, ad position is determined by two factors, measured equally. The two factors are your Maximum CPC as compared to your competitors, and your CTR as compared to your competitors.

Simply stated, position is determined by rank number, as defined by this formula:

Max CPC x CTR = Rank Number. (The higher the rank number, the higher the position.)

So whichever keyword variation has the highest rank number in the moment of the search will appear above the other.


The reason I ask is because, when entering in the keywords in exact match form, they ask for the max cpc. So they use traffic estimator and tell you how much to bid. Most say 5 cents.

Quite often exact matches, because they are inherently more specific, may be cheaper to use than broad matches.

I can go into more detail later if you like - but hope this'll help for now. :)

AWR

[rustybrick]

Thanks AWR,

I am hoping, that when you have time, if you can go into more detail. I do understand the Rank Number (I should have said that in my first post). However, I do not understand the following point.

Person A bids $2 on the keyword widget using broad-match.
Person B bids $1 on the keyword blue widget using exact match.

Will Person A rank above Person B for the term blue widget if the CTR is equal between A and B?

If so, then when looking at keywords to bid and what you should set your max bid at, you should look at the keyword widget and not the keyword blue widget. Correct? I know it gets more complex then this, so I am asking you to give me the detail.

Thanks again AWR!

[AdWordsRep]

Rustybrick, as I reflect on your questions, I am not 100% sure I've understood what you are really asking.

It seems that maybe you're wondering if the AdWords system favors one type of match over another. If this is the case, then the answer is 'No'.

If two advertisers have used similar keywords - one as a broad match and the other as an exact match, and both ads are eligible to show for a user's search, then which ad shows first depends entirely on the rank number of each keyword. In other words, the exact match keyword is not given preference because is it more exact.

Looking at your example:

Person A bids $2 on the keyword widget using broad-match.
Person B bids $1 on the keyword blue widget using exact match.

Will Person A rank above Person B for the term blue widget if the CTR is equal between A and B?

The answer is 'Yes', but not because of the match type. It is 'Yes', because both ads are eligible to show for the search, and Person A's keyword has the better rank number.

Let's say that both A and B had the same CTR of 2% (which, by the way, is extremely unlikely, because CTR it is constantly changing, and also calculated out to many decimal places.)

Person A bids $2 x 2% CTR, thus rank number = 4
Person B bids $1 X 2% CTR, thus rank number = 2

So, yes, A appears first.

If so, then when looking at keywords to bid and what you should set your max bid at, you should look at the keyword widget and not the keyword blue widget. Correct?

This is the question I'm not really clear about. Can you clarify?

At the bottom line, I'd use the keyword that you think will bring you the best results. For example if you only have 'blue widgets' then 'blue widget' is probably a better keyword than 'widget' to use, since it will cause your ad too appear only for searches that match what you sell.

And be aware that both CPC and position are not fixed things. Both literally vary from click to click, depending on what the actual situation is in the moment of each click.

AWA

[rustybrick]

Thanks AWR - that answers my question.

[AussieWebmaster]

Interesting post... I thought there was another factoring for hitting the exact term...

[rustybrick]

I guess there is an indirect factor for using exact match.

It is assumed that when using exact match, your CTR would be higher. Thus increasing your rank weight.

But I wonder, statistically, how valid this is in most cases. :confused:

[webcertain]

I guess there is an indirect factor for using exact match.

It is assumed that when using exact match, your CTR would be higher. Thus increasing your rank weight.

But I wonder, statistically, how valid this is in most cases. :confused:
The indirect factor might be that more ads have the key words in the title when they're running on exact match rather than broad match, which improve the ctr..
Cheers,
Johann

[rustybrick]

The indirect factor might be that more ads have the key words in the title when they're running on exact match rather than broad match, which improve the ctr..
Cheers,
Johann

Yea but when I set up ads to run, I use the syntax {KeyWord} so that the keyword they type in, is dynamically put in the title of the ads.

[seobook]

I think the biggest factor that helps exact match click through rates is that most people do not heavily build up a negative keyword list and many words have a ton of meaning.

each completely irrelevant ad you show cuts down the effectiveness of the good ads that you are showing.

[cline]

For terms with significant traffic you may want to bid separately on broad match and exact match, depending on your bidding strategy, as the CTRs may divurge. There may also be differences in conversion rates between the two.

[rustybrick]

Well, if we are talking about me (self-serving), I set my client up to only use "exact match" for now. I want to be very careful as to which keywords he should pay for. So your suggestion would be to up the CPC prices to match those of the broad matched words? I.e. increase the CPC to $2 from $1 for blue widget, because widget is going at $2 and no one is bidding on blue widget per-say.

[AdWordsRep]

Interesting post... I thought there was another factoring for hitting the exact term...

AussieWebmaster, you may be remembering a nuance of what happens when the same phrase is used as both an exact match and a broad match keyword in the same account. (As opposed to being used in your account, and also in a competitors account.)

When this is the case, the impression is assigned to the closest match to the actual keyword that a user has searched on.

That probably makes no sense without an example. Thus, below, please find an example!

Say you have these keywords in your account:

polished granite widget
"polished granite widget"
[polished granite widget]

* If I search on the phrase 'polished granite widget', then the exact match gets the impression.

* If I search on the phrase 'polished granite widget desk set' then the phrase match gets the impression

* If I search on the phrase 'polished gray granite widget' then the broad match gets the impression.

Hope that make sense. If not I'll try again later in the day after the coffee has kicked in! :eek:

AWR

[andrewgoodman]

Rustybrick, as I reflect on your questions, I am not 100% sure I've understood what you are really asking.

It seems that maybe you're wondering if the AdWords system favors one type of match over another. If this is the case, then the answer is 'No'.

If two advertisers have used similar keywords - one as a broad match and the other as an exact match, and both ads are eligible to show for a user's search, then which ad shows first depends entirely on the rank number of each keyword. In other words, the exact match keyword is not given preference because is it more exact.

Looking at your example:



The answer is 'Yes', but not because of the match type. It is 'Yes', because both ads are eligible to show for the search, and Person A's keyword has the better rank number.

Let's say that both A and B had the same CTR of 2% (which, by the way, is extremely unlikely, because CTR it is constantly changing, and also calculated out to many decimal places.)

Person A bids $2 x 2% CTR, thus rank number = 4
Person B bids $1 X 2% CTR, thus rank number = 2

So, yes, A appears first.



This is the question I'm not really clear about. Can you clarify?

At the bottom line, I'd use the keyword that you think will bring you the best results. For example if you only have 'blue widgets' then 'blue widget' is probably a better keyword than 'widget' to use, since it will cause your ad too appear only for searches that match what you sell.

And be aware that both CPC and position are not fixed things. Both literally vary from click to click, depending on what the actual situation is in the moment of each click.

AWA
AWA, this is actually a pretty important answer because it may reflect on some of the strategies that are touted as leading to higher ROI. I've never been one to favor massive generation of every conceivable phrase and then making them all exact match, because I don't necessarily see the advantage. But some will say that this is a good strategy.

Basically, in discussion with a vendor of a keyword-heavy technology/methodology, where they were trying to tell me that one could benefit from having all kinds of phrases with the specificity of, say [reserve hotel room in houston], I argued that the competition here wouldn't be lessened just because you had that exact phrase. Others using broad matches for houston hotel or just hotel would "butt in" and show up on the same page and be driving up the CPC's necessary to rank well.

On the off-chance that you're also creating enough different ads that your exact matching [reserve hotel room in houston] somehow creates a killer CTR on that phrase that the others can't keep up with by dint of their broad matching, you would have something of an advantage. Exactitude can improve CTR's, but it doesn't always improve them that much.

But this leads to another question. Since the exact phrase [reserve hotel room in houston] will never by typed in enough times to generate a "CTR track record," wouldn't the advertiser's CTR on that phrase come in at the default value of 1.0% or whatever it is, so if others are running at 2% then using the very exact match method might actually handicap one at first, until someone actually clicks on stuff?

It's complicated, isn't it?

[rustybrick]

Andrew, are you offering a master program in AdWords. By the way, I preordered your book at Amazon. :) Back on topic...

I am amazed by some of what you (andrew) just said about the CTR being 1% for [exact match].

So how does an AdWords customer like me, who only wants to rank for let's say 10 exact matched keyword phrases do that?

I know [blue widget] doesn't get searches on that often, but when it does, i want to get a low CPC. Not the CPC that widget would drive.

I guess I am still confused and the CTR example Andrew provided makes it worse. :(

[AussieWebmaster]

The obvious is that there will generally be more people in the broad than the exact or qualified keyword... so closer will be up and the competition will be less

[snakedriver]

Yea but when I set up ads to run, I use the syntax {KeyWord} so that the keyword they type in, is dynamically put in the title of the ads.


Great thread. Just curious how you use the {syntax} tool. I've been using Adwords for a while now but never came across this option. Any other helpful hints?

BTW still just as confused about broad vs specific...ouch

[rustybrick]

Great thread. Just curious how you use the {syntax} tool. I've been using Adwords for a while now but never came across this option. Any other helpful hints?

Hey SnakeDriver,

Just change the title of your ads to read {KeyWord}. Try it, and you'll understand when you see your add.

Jessica Stricchiola told us this in the Creating Compelling Ads & Landing Pages (http://forums.searchenginewatch.com/showthread.php?t=910) session at SES San Jose.

[AussieWebmaster]

Hey SnakeDriver,

Just change the title of your ads to read {KeyWord}. Try it, and you'll understand when you see your add.

Jessica Stricchiola told us this in the Creating Compelling Ads & Landing Pages (http://forums.searchenginewatch.com/showthread.php?t=910) session at SES San Jose.
Just remember to use {Keyword:ALTERNATIVE TITLE} just in case the keyword goes over 25 characters as the default the other way is to leave it blank!

[rustybrick]

Just remember to use {Keyword:ALTERNATIVE TITLE} just in case the keyword goes over 25 characters as the default the other way is to leave it blank!

Excellent advice, I did not know about that. Thank you.

[AussieWebmaster]

Excellent advice, I did not know about that. Thank you.\
Any time mate.... when are we having a meeting of NYC SEW members?

[andrewgoodman]

Well believe it or not, like any so-called expert, I do not know everything on my topic. I am strong in some areas, unhealthily curious in others, and willing to ask others for help in still others. By the time "the book" is written (or this post for that matter), hopefully 95% of the info is correct, and more importantly, there are enough mind-stretching principles and analogies in there that help a person continue to figure things out on their own. (After all, as we can see, Google can answer specific questions if you know how to pose them. It's the strategy and tactics that they can't completely be expected to help us with.)

On the CTR "assigned to start" issue, not trying to be confusing there, but we do know Google has to assign new keywords SOME default CTR for purposes of "Rank Number." It can't be zero or you'd always start at the bottom and that would be a tough cycle to get out of. So as I recall, they use something like 1% or the average in a given area (not sure which, don't remember, but I don't know that it matters). So if you're being assigned 1% on a very specific exact match term, there could be very clever advertisers on that same term who have had no problem achieving 4-6% on it. Insofar as doing more exact matching keeps you in "new, default CTR" status due to very low volume on each phrase, then I'm not so sure that initial default CTR is helping ROI. Theoretically it might hurt it, forcing you to crank bids up at first. That's no big thing, it just goes to show that there are often unintentional side-effects of any dramatic "master plan" that will help you outdo the pack in AdWords. It's the beauty of an auction, especially a complex one like this, that everyone else wants the same result you do, so it isn't going to be like falling off a log to win at it.

Any number of these kinds of scenarios can be overthought to death, so I try instead to not overthink everything. I put together a campaign that makes sense and try to remember who is at the other end -- a sentient customer. Preferably, many of them. There is nothing wrong or lazy about making liberal use of broad and phrase match as long as you go about it right.

I'd say that on the whole I have a phrase-match bias. I also like two-word and three-word broad matches. These can be very specific without being utterly restrictive.

Exact matches are cool, but as you start to make more use of them, the volume on any given exact match is so low as to be trivial. That leads to philosophical debates about how to use analytics to best advantage, etc.

[rustybrick]

I hear what you are saying, but in some cases exact match would be preferable, I think. I guess its best to give an example, this is not a real example.

I sell Button Down Shirts for only the Corporate Industry.

I do not sell any other types of shirts, only button down shirts. I do not sell button down shirts to a small business, just a corporate business.

I figure this is the perfect place for exact match, right?

[corporate button down shirts]

Side note: I am not sure if order of keywords matters with exact match, I think it only matters with phrase match.

[snakedriver]

I set it up and works like a charm - thanks to both rustybrick and aussiewebmaster for the instructions. Does this work on other CPC platforms such as overture?

[The Generator]

BTW rustybrick, I wouldn't base your bidding on the Adwords traffic estimator, as through experience, I have found that it is WAY off. This is confirmed by the post entitled "Broken Traffic Estimator" in this section of the forum.

[rustybrick]

Thanks for the information. I appreciate all the advice.

[eragon]

Just remember to use {Keyword:ALTERNATIVE TITLE} just in case the keyword goes over 25 characters as the default the other way is to leave it blank!

I find this interesting and NEW as well...never heard of it. But after reviewing the thread where it explains how this works I need a little more clarification.

Near the bottom of the thread it says "...people are using 3 to 4 keyword searches, how much longer will this trick work?" With the 25 character limit AND the variety/uncertainty of keywords being searched on, how can you expect to get an ad with a meaningful title?

If I'm selling widgets, and the keyword I'm bidding on is "widgets", and the search performed is "widgets in Long Beach", what can I expect my ad title to look like when using this method? The thread's example shows "{keyword: Long Beach}. So does that mean G will place whatever is in brackets in my title somewhere before or after my keyword? And if so, why the brackets in the first place? I should be bidding on that combination of words anyway.

Just a little confused here. :confused: I don't see how you can control it to avoid having your title look silly. It may not be for me, but any explanation would be helpful!

[The Generator]

I find this interesting and NEW as well...never heard of it. But after reviewing the thread where it explains how this works I need a little more clarification.

Near the bottom of the thread it says "...people are using 3 to 4 keyword searches, how much longer will this trick work?" With the 25 character limit AND the variety/uncertainty of keywords being searched on, how can you expect to get an ad with a meaningful title?

If I'm selling widgets, and the keyword I'm bidding on is "widgets", and the search performed is "widgets in Long Beach", what can I expect my ad title to look like when using this method? The thread's example shows "{keyword: Long Beach}. So does that mean G will place whatever is in brackets in my title somewhere before or after my keyword? And if so, why the brackets in the first place? I should be bidding on that combination of words anyway.

Just a little confused here. :confused: I don't see how you can control it to avoid having your title look silly. It may not be for me, but any explanation would be helpful!

Good question eragon. To answer your question, I'll first present the set up:

You have an adgroup with only 5 keywords in it. These are:

- long beach widgit store
- widgits
- widgits galore
- long beach widgits galore store
- widgit wizard

and in this adgroup you have one ad (with a title of under 25 chars and each line of description being 35 chars)

If you decide to use {Keyword: Long Beach} then that means anytime someone types in one of the 5 above keywords, that keyword will be the title, i.e. if my search is widgits galore, then I will see your ad with a title that reads: widgits galore

However, if one of the keywords accessed is over 25 characters then the title will default to: Long Beach. In other words, if someone typed in, well hypothetically, long beach widgits galore store, which is over 25 chars, then Long Beach would be the title of the ad that appears for the search.

BTW, if you only enter {Keyword} then you would have an adword that has no title (only two lines of description) appear for the keyword long beach widgits galore store.

[snakedriver]

I'll admit I too was a little confused how the ALTERNATE KEYWORD worked, but that was a well executed explanation 'The Generator'.

I wonder how many people know about this trick. I did a search and couldn't find anything out there except the original thread that rustybrick alluded to at SES san jose.

[AussieWebmaster]

Another clarification.... if for example you have "Blue Widgets" as your keyword and the search is for large Blue Widgets... you say place second as no one is advertising for the exact with a better CTR and you are second for bid and CTR... what appears in the title of the ad is just "Blue Widgets" not the full search term but rather the term accessed in your list to meet the search.

[eragon]

Good explanation The Generator; you too AussieWebmaster!

I'm starting to see how this works. The trouble I was having with getting this to sink in is because I group my adgroups based on geographic location. So a campaign of mine would be "Georgia", and the adgroups would be something like "Atlanta", "Dunwoody" and so on. So I couldn't see the benefit of using this trick because I'm already focusing my ads on the location as dictated by my adgroup.

So it sounds like this trick is more for when you have groups of keywords that may contain more than one location AND multiple ads, but all within the same adgroup, right?

[webcertain]

Hi all,
I would like to try another campaign with UK after the keyword, so should I use {Keyword:ALTERNATIVE TITLE} UK or {Keyword UK:ALTERNATIVE TITLE}, or do I need to change all my keywords?
Cheers,
Johann

[AussieWebmaster]

Hi all,
I would like to try another campaign with UK after the keyword, so should I use {Keyword:ALTERNATIVE TITLE} UK or {Keyword UK:ALTERNATIVE TITLE}, or do I need to change all my keywords?
Cheers,
Johann
And the winner is: {Keyword UK:ALTERNATIVE TITLE},

[webcertain]

Cheers :-)

[andrewgoodman]

Phrase match would work better here, in order to show your ad to someone who types "blue corporate button down shirts" or "corporate button down shirts comparison." Where is the advantage in being as restrictive as an exact match? That's why I basically have a phrase match bias (and also two and three word broad matches quite often). It's somewhat less restrictive.

And the advantage of bidding on all of

[green corporate button down shirts]
[blue corporate button down shirts]
[orange corporate button down shirts]

etc. ad nauseam,

would be negligible.

Especially if you're neglecting key variations on words like corporate or button-down.

Furthermore, the broad match would be quite advantageous while also being quite restrictive. Just do the math on how few matches you'll end up with if the query has to match FOUR words! In case someone types "shirts corporate button down," you're covered if you're using the broad match, since you don't have to get the words in the right order.

As a final aside, Stacey and Clinton on "What Not to Wear" use the term "button-down shirt" completely opposite to how I used to understand them -- they used to mean those oxford shirts with buttons on the collars that law students and some comics used to wear circa 1991, and certain SEO's continue to wear with khakis. Apparently this is no longer the meaning of "button-down shirt" in this brave new world. Apparently it just means a dress shirt that buttons up. It's like an anvil came flying out a 20th-storey window and hit me in about 1995 and now I don't know the proper meanings for words. Thank goodness for The Simpsons. At least I understand them.

Back to our topic here: many clients like the notion of exact match, because they're fearful and don't want to spend much. Those who are doing well with AdWords soon want to figure out how to expand their volume.

I hear what you are saying, but in some cases exact match would be preferable, I think. I guess its best to give an example, this is not a real example.

I sell Button Down Shirts for only the Corporate Industry.

I do not sell any other types of shirts, only button down shirts. I do not sell button down shirts to a small business, just a corporate business.

I figure this is the perfect place for exact match, right?

[corporate button down shirts]

Side note: I am not sure if order of keywords matters with exact match, I think it only matters with phrase match.

[rustybrick]

First of all, shame on you for adding the word "who" to your post. (hmm...was trying to make a joke, but after writing it, it didn't sound to funny...does writing this make it worse.)

Back on track. I appreciate your advice, it sounds like some of this is trial an error. Properly mixing broad match, exact, phrase and especially negative match together. Does anyone get it right the first time? :)

[AussieWebmaster]

Does anyone get it right the first time? :)
I always do... until I learn a righter way to get it done!