"Making Web Promotion Easier..."

Issue: February 2005
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Web site Promotion & Internet Marketing Software 
In this issue of Dynamic Internet Marketing Newsletter »

Internet Marketing News Flash

MSN Search Officially Switches To Its Own Technology

It's official. Nearly two years after announcing it would develop its own search technology, MSN Search began feeding the general public results found through its own internally developed search engine. The rollout has happened worldwide, including on the main MSN Search site.

Click Here to Read the entire article ...

Google and latent semantic indexing

Rumor in search engine forums has it that Google is giving more weight to latent semantic indexing (LSI) in its latest ranking algorithm update.

What is latent semantic indexing?

LSI means that a search engine tries to associate certain terms with concepts when indexing web pages. For example, Paris and Hilton are associated with a woman instead of a city and a hotel, Tiger and Woods are associated with golf.
Google has been using this concept to determine suitable ads for its AdSense service for some time now. It seems that Google is now also using this concept to improve the quality of its search results.

If you search for a keyword on Google and add a tilde ~ before the search term, then you get an idea of what Google thinks about a search term. For example, if you do a semantic search for phone, Google returns Nokia as the first result. A normal search for phone returns different results. Adding a tilde to the search term seems to instruct Google to do a semantic search.

Why is this important to your SEO activities?

If Google uses this concept in its ranking algorithm (which is very likely) then its advisable that you don't focus on a single keyword, but on a set of related keywords with your search engine optimization activities. You should optimize some of the pages on your web site for keywords that are synonymous with the keyword you're targeting. When you exchange links with other web sites, make sure that you vary the link text to your web site so that it contains different variations and synonyms of your keyword.

Where can I find further information about LSI?

Latent semantic indexing helps search engines to find out what a web page is all about. It basically means to you that you shouldn't focus on a single keyword when optimizing your web pages and when getting links. The web pages on your web site should be related and focus mainly on a special topic while using different words that describe the topic. Use variations of your keyword and synonyms. That makes it easier for search engines to determine the topic of your site.

This article originally appeared in the Axandra newsletter:

The First Critical Steps To Waging A Profitable AdWords Campaign

The past few years have witnessed the morphing of search engine optimization (SEO) into search engine marketing (SEM). And, as you are undoubtedly aware, SEM is a multi-faceted endeavor that demands careful integration of online marketing strategies. Today's astute SE marketer knows that page optimization, inbound linking strategies, and paid placements all dovetail together to form the winning combinations that drive traffic to sites that generate profits.

Of course, one of the cornerstones of SEM is Google's AdWords Program. However, unlike traditional pay-per-click advertising where the top placement is awarded to the top bidder, AdWords uses a formula that allows the underdog to triumph over advertising behemoths who might otherwise just buy the top ranking. On AdWords, one can rise to the top of the listings with a lesser bid by simply offering a more compelling ad that motivates visitors to "click" more often.

Perhaps you already know all that - but, what you may not already know are the various ways to beat the competition by making some lesser known, but very smart, choices within your AdWords setup and your keyword selections.

How Smart Choices Can Get You Top Placement For Less!

Unlike traditional pay-per-click engines, Google bases its ad ranking formula around two values - the cost per click (CPC) and the click-thru rate (CTR). Your CPC is what you pay every time someone clicks your ad. This fee is set according to the maximum amount you have agreed to pay for each click and typically reflects the competitiveness of search queries you're bidding on. If no one else is bidding on the same search queries, then your CPC would only be the $0.05 per click minimum fee. The opposite is also true. Popular search queries are more competitive and therefore bid considerably higher. Such competitiveness can substantially increase the CPC it takes to become the top bidder.

Your CTR indicates the percentage of people who actually click on your ad as compared to the number of people who see your ad. Each time your ad is seen, that's called an impression. If your ad gets 100 impressions and one person clicks, then your CTR is 1%.
The method Google uses to determine the numerical position of your ad in relation to your competitors' ads is determined by the following formula:

your CPC


your ad's CTR


your ad's position index (PI)

To see how this works, imagine you're bidding on the search query (keyword/keyphrase) cell phones. Your company, CheapCells, is competing for this same keyphrase with two other companies, BestCells and TopCells. You've decided that you will bid a maximum of $0.09 per click for this keyphrase. For every 100 people who see your ad, 3 are clicking on it, so you have a 3% CTR. Let's see how your position index (PI) compares to that of your competitors:


$0.09 CPC


3% CTR


0.27 PI


$0.08 CPC


5% CTR


0.40 PI


$0.10 CPC


2.7% CTR


0.27 PI

Here you can see that, even though BestCells only has a CPC of $0.08, they will still rank higher than you because their 5% CTR gives them a higher position index. This is the great thing about AdWords - lower bids can still outrank higher bids if they can motivate more people to click their ad.

What about TopCells? Even though they've bid a higher CPC, their lower CTR means that you both end up with the same position index. In this case, Google uses the advertiser's maximum bid - the top price you're willing to pay for a click - to determine who will rank higher. Since AdWords is based on an automatic bidding process, if someone obtains a higher PI than you - either through increasing their CPC or by achieving a higher CTR - Google will increase your CPC up to your maximum bid until your PI index is greater than theirs. This continues until you've either obtained top ranking or you've reached your maximum bid.

In this example, let's say that you decide to increase your maximum bid to $0.12, while TopCells increases theirs to $0.15. In the previous scenario, you both had a 0.27 PI. In this situation, Google will engage in an automatic bidding war until one of you emerges victorious. Assuming your CTR remains the same, Google will increase each of your CPCs until one of you reaches your max bid. When this happens, the following situation emerges:


$0.12 CPC


3% CTR


0.36 PI


$0.08 CPC


5% CTR


0.40 PI


$0.12 CPC


2.7% CTR


0.32 PI

At this point, your company, CheapCells, has maxed out. The only way to increase your PI now is to increase your max bid or get a higher CTR (generally by writing more effective ad copy that draws more clicks). Notice that BestCells is still ranking in position one, with a PI of 0.40, even though their CPC is far lower than anyone else's. This is because they have written compelling ad copy that is attracting more clicks giving them the best of both worlds - more clicks for less money (Hint: perhaps you should emulate what you can from BestCell's ad copy to increase your own CTR).

TopCells, on the other hand, still has room to grow, since they set their max bid at $0.15. AdWords' automatic bidding process continues to increase TopCells' CPC until they have a higher PI than BestCells. That happens when TopCells reaches their maximum bid of $0.15:


$0.12 CPC


3% CTR


0.36 PI


$0.08 CPC


5% CTR


0.40 PI


$0.15 CPC


2.7% CTR


0.41 PI

This puts TopCells in position one, placing its ad above all other competitors' ads. But notice that TopCells is paying nearly twice as much per click as their next closest competitor, BestCells. And, BestCells could easily move TopCells out of the top position by increasing their max bid by just one cent.

This underscores the importance of CTR when running an AdWords campaign. AdWords allows you to remain competitive - even with a smaller budget - as long as your ads attract more clicks. And you can do that by making your ad copy more compelling and more relevant to the keywords that you're competing for.

Of course, a company with a huge advertising budget can still keep increasing their max bid to stay ahead of you, but at some point this becomes unprofitable for even the largest company. Not to say that a big company won't continue to pay large CPCs, but Google does tend to level the playing field by rewarding relevance and good ad copy, as opposed to just deep pocketbooks.

These examples illustrate that you can compete successfully, even in extremely competitive areas, by being smart and focusing on making your keywords and ad copy relevant to your customers' searches.

Choosing your Keywords

The first critical step to creating a smart AdWords campaign is to create a list of effective keywords. The importance of this step cannot be overstated. Do it correctly, and you're well on your way to generating profits. Do it wrong, and you might as well go home - because nothing else in your campaign is going to work.

What does it mean for a keyword (or keyphrase) to be effective? It really boils down to one thing. On average, the amount of value that the keyword generates per click must be greater than that keyword's cost per click. In other words, that keyword needs to be producing profits.

A keyword must also generate enough clicks to keep it from being disabled by Google. If your keyword does not maintain a CTR of at least 0.5%, that keyword will be disabled. This means that once a thousand people have searched for your keyword and have seen your ad, at least five of those visitors will need to have clicked on your ad in order for that keyword to stay active. If not, Google disables that keyword and your ad no longer appears when someone uses it in a search. (There are ways to re-enable disabled keywords which we'll discuss later). This is another reason why your keyword must be relevant to the ad you're running.

To find effective keywords, it's best to extensively brainstorm the process. You'll eventually want to track down every possible search query that someone might use when looking for the products or services your company offers. Here are three of the top tools geared to help you do just that:

the WordTracker keyword tool

the Google AdWords Keyword Tool

and the Overture Keyword Selector Tool

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These tools can supercharge your keyword brainstorming process and, combined with the following Keyword-Building Tips, will help you generate your optimal keyword list:

1. Put Yourself in Your Customer's Shoes.

What keywords would you use to find your product? Talk to people who might represent a typical customer and ask them to do a search for what you sell. If you're selling a consumer product, such as cell phones, then friends and family could help in this regard. Sit down with them at a computer, ask them to find your products or services, and see what searches they do. You may discover a keyword or group of keywords your competitors have overlooked. This could mean cheap clicks since there won't be anyone for you to engage in a bidding war with.

Remember to keep a customer's perspective. Unless you're selling to insiders within your own industry, try to avoid industry jargon. Think about words and phrases that real customers, not industry insiders, would use in a search.

On the other hand, if you are selling to insiders, then by all means, jargon away! If you're hired to run a campaign for an industry you're unfamiliar with, you should study the trade magazines to familiarize yourself with industry jargon and catch-phrases. You can also mine the indexes and glossaries of books about the topic you'll be placing ads for, as well as browse internet forums dedicated to the particular industry or hobby you're targeting.

2. Check Out the Competition.

Once you've acquired a small list (shoot for about 25 keywords and phrases), run some searches on those potential keywords to learn what terms your competitors are actually bidding on. This can give you an idea of what keywords are getting traffic and conversions. You could also view the source of your competitors' homepages to determine what keywords they're optimizing for in their keywords meta tag. If they're optimizing their pages for those keywords, you can probably assume that they're bidding on them as well. However, don't slavishly follow the example of your competitors. Many of them actually have very little idea of how to run an effective AdWords campaign. For all you know, they could even be losing money on the ads they're running.

One way to tell which of your competitors is waging a successful campaign is to monitor whose ads are showing up for your chosen keywords over a period of a month. Those ads that are relatively stable and show up consistently are probably making a profit. They're the ones you should emulate. But, again, don't get too caught up in what your competition is doing. Ideally, you're looking to find high traffic keywords that your competitors are not bidding on.

Another way to utilize your competition, though controversial, is to bid on your competitor's product names, company names, or even key executive names if they're high profile enough. Bear in mind, however, that while this practice is currently allowed by Google, it could generate some unflattering publicity for your company and may even elicit some threatening letters from your competitor's lawyers. Be sure to weigh the pros and cons before moving forward. Not surprisingly, this practice is fairly widespread and, in most cases, doesn't appear to be problematic. For instance, McAffee and TrendMicro are both currently bidding on the term Norton. As to legalities? ...we can't legally advise you. To be safe you should always check with your attorney.

3. Cover All Your Keyword Variations.

Next, look for variations on keywords you think might be successful. This includes synonyms, plurals, misspellings, or keywords separated-by-hyphens. Most customers usually search for a product or service using a single phrase. This means that your first priority should be to cover every possible variation of that phrase. For example, if your site sells cell phones, your initial list should consist of phrases like:

cell phone
cell phones

mobile phone

cellular phone
cellular phones
wireless phone
wireless phones

...and so forth.

Again, the keyword tools mentioned previously can greatly assist with this process. Once you have covered all the variations on what you expect to be your most important terms, begin adding descriptive terms, or terms that describe a problem, to augment your existing terms. For instance, cheap, low cost, affordable, or inexpensive can go with most consumer products. However, avoid superlatives, such as best or cheapest, since they aren't usually allowed by Google's ad review team. To the list of cell phone terms above, you could also add such terms as:

cheap cellphone
cheap cell phone
cheap cell-phone

affordable cellphone
affordable cell phone
affordable cell-phone

...and so on.

(note: if you use these, your cell phones should actually be affordable to avoid being rejected by Google's ad review team)

Sometimes, using reverse descriptive words, or words that describe the opposite of what your product does, can work to your advantage. For example, if you're selling fast Internet connections, slow internet connection is at least as good a term to bid on as fast internet connection, since a person typing the query "slow internet connection" has a problem that they're actively searching to find a solution to.

(You might wonder why we added an extremely broad term like cell to our keyword list above, even though it's likely to bring on tons of untargeted traffic, such as searches for cell biology or solar cell. The reason is that you can still bid effectively on this keyword as long as you have an extensive list of negative keywords to filter out unrelated queries. We'll cover negative keywords in greater detail later.)

4. Start General, But Work Towards Greater Specificity.

Typically, you'll start out with the most general keywords and phrases. These are the easiest to think of and usually generate the most traffic. However, as the brainstorming process continues, you should be searching for increasingly targeted and niche terms.

The best keywords will be those that generate a high volume of impressions but have little or no competition because they have somehow been overlooked or are too specific (there are still a surprising number of these left), or else none of your competitors are able to stay in that space because they cannot get sufficient click-thru due to poor ad copy.

One way to find these niche keywords is to check your site's referral logs. Referrals coming from search engines will include the query that a searcher used to find your site. People will often search using some very unusual search queries - terms that you and your competitors might never think to bid on. Once again, this can give you a leg up on the competition, even in competitive fields, by enabling you to capitalize on more specific and more targeted keywords.

5. Convert Casual Surfers Into Customers

Don't just focus on keywords that shoppers might search for. What about all of those non-shoppers out there on the internet? Think about how many times you've been surfing the 'net and ended up buying something that caught your eye even when you originally had no intention of going online specifically to make a purchase. Perhaps you were just looking for the score to last night's basketball game and you ended up buying a pair of Nike tennis shoes because the price was right.

A contrived example, perhaps, but the point is that people type all sorts of terms into search engines without any intention of buying anything. However, if your ad catches their eye and you have a solution to their problem, then some of those people could be converting to sales at a very low cost per click because your competitors never thought to bid on those bargain keywords. The trick is to find terms that target your audience but aren't so general they also bring in reams of untargeted traffic.

Time-sensitive industry buzzwords or news headlines can also bring in the non-shoppers, at least for a while. At one time, the phrase florida update was a great term to bid on for companies selling search engine optimization services. Nonsensical to outsiders, but if you were running an online business during November of 2003 when Google radically adjusted its ranking algorithm, I suspect you spent quite a bit of time thinking about that phrase.

As another example, consider the headlines that were generated by the brawl that occurred in late 2004 during a basketball game between the Indiana Pacers and the Detroit Pistons. A time-sensitive phrase like pistons pacers fight might have been a great way to cheaply attract customers to a site that sells sports merchandise.

6. Use Action Words.

Again, try to think about the way customers conduct searches. Many of your customers will search by using action words such as buy, find, or purchase. Append these types of words to your primary keywords (go ahead, break out the thesaurus - just make sure you stick to search words people actually use). Now your list will grow to include such terms as:

buy cell phone
buy cellphone
buy cell-phone

find cell phone
find cellphone
find cell-phone

...you get the picture.

Many searchers will also phrase their queries in the form of a question. For instance, the query where can I buy a cell phone actually gets a fair amount of traffic. As you grow your keyword list, consider using questions for which your site and your products or services provide a solution.

7. Target Local Markets.

If you're selling to a local market, it helps to be familiar with local idioms and unofficial place names. For example, Philly vs. Philadelphia, Big Apple vs. New York, or Big Island vs. Hawaii (and did you know that people living on Michigan's Upper Peninsula refer to themselves as Yoopers?).

But don't leave out official place names. If you sell mobile homes in San Diego, make sure you bid on california mobile home and san diego mobile home, in addition to socal mobile home. You'll also probably want to pull in traffic from surrounding cities and counties, so you could add mission beach mobile homes, la jolla mobile homes, etc... Break out a map and add those relevant place names to your keyword list.

8. Go Negative.

As you come up with new keywords, be sure to plug them into the keyword tools we mentioned so that you can see what common searches are related to that keyword. Not only will this give you plenty of other ideas for keywords, but it will also show you what words commonly accompany your keywords in searches but have nothing to do with your business. Such terms, by the way, are called negative keywords - and you should use them to filter out unrelated terms or terms which could dilute your targeting.

Depending on your type of business, good negative keywords could include free, used, or refurbished. You might also want to filter out words commonly associated with illegal online activity, such as cracks, warez, or mp3, as well as words used in searches for adult sites (adult, hardcore, xxx). It's entirely possible that you and a competitor could be bidding on the exact same keyword with your ad being profitable and your CTR above 0.5%, while their ad is losing money and being disabled by Google for low CTR. The difference being attributed to your using a larger negative keyword list which is filtering out the untargeted traffic.

For example, if you're bidding on the term mobile home, your ad could show up for the search t mobile home phone. In this case you'd want to add the terms t and phone to your negative keyword list.

Whenever you're brainstorming new keywords, you should also be on the lookout for negative keywords that might dilute those new keywords. When you're monitoring your logs to see what searches people are using to find your site, also look for terms in those searches that are totally unrelated to your page and add them to your negative keyword list. Or when you're checking out what competitors come up for your chosen keywords, see what other sites show up that have nothing to do with your site. Those sites can also be a good source of negative keywords, since you wouldn't want to pay for clicks form people who are actually searching for something you don't offer.

As you work on growing and refining your keyword list based on what keywords are generating profits, you'll find that many of your keywords will simply not perform, and will be disabled by Google for insufficient CTR. Sometimes, this low performance is not due to a bad keyword as much as it's due to poor ad copy or irrelevant impressions brought on by a negative keyword you didn't think to filter.

If you think that these keywords still have potential, you can re-enable them by first deleting them from their current ad group and then adding them to a different ad group. Make sure that you've done your best to identify and fix what made that keyword fail initially, though, so the keyword doesn't get disabled again.

Choosing Your Match Type

Initially, you're going to want to start with a smallish list (no more than 100) of what you anticipate to be your most effective keywords. Once you have this keyword list, you'll have to decide how much leeway to give Google in matching search queries to those keywords. Google AdWords has three styles of matching, and it is critical that you understand the difference between them. The three types of matching are:

1. Broad match

This is the most general type of match. To run your keywords as broad match, you simply enter your terms on a single line in your keyword list with no quotes or brackets. Your ad will appear for any search that has your keywords in it, in any order, with any other words, and will also appear for searches that include plurals, misspellings, and synonyms of your terms.

For many terms, broad matching is too broad, and will produce undesirable results. For instance, if you do a broad match bid for the term comic books, your ad will appear for such searches as books by comic george carlin and even book tickets for comic george carlin, as well as many other possibly unrelated searches.

Broad match requires the least amount of work on your part since most related keywords will automatically be generated for you. It relieves you from having to build your own detailed keyword list. But, as we mentioned, broad match can also produce a lot of untargeted impressions. If you do use broad match, be sure to bid lower than you would for more targeted matches.

You should especially avoid broad matching single word terms as they can cause your ad to be displayed for a huge number of variations. For instance, if you just did a broad match bid on the term mobile, your ad will be shown to people looking for mobile homes, mobile phones, and Mobile, Alabama - not the most targeted group of customers.

Of course, there could be cases where a single keyword is specific enough that all permutations are related to your business (product names, for instance). In such cases, if you do a broad match bid on a single keyword, you'll still want to add sufficient negative keywords to facilitate high targeting. If you can manage to do this, while keeping your click-throughs above the 0.5% cut-off rate, then the keyword might be very profitable for you. Of course, this may end up making broad match the most labor-intensive match option, since you might need to brainstorm a huge list of negative keywords.

Occasionally you will find a high-traffic single keyword with very little competition. This is usually because your competitors aren't able to achieve a sufficient CTR to remain in that space for long - due to poor ad copy or ineffective use of negative keywords. In such cases you could end up spending very little per click for a reasonably high volume keyword. Of course, much of your success will depend on being able to present compelling ads that pull sufficient click-throughs and filtering out irrelevant traffic through negative keywords.

To summarize: we generally do not recommended broad match since the targeting is so bad. Another reason is that it can also be very difficult to track which variations of a keyword are profitable and which are just wasting money. It's usually better to find all these variations for yourself through keyword research and use the exact match option to determine which variations are most effective.

2. Phrase match

This is the second most general type of match. To run your keywords as phrase match, you simply enter your terms on a single line in your keyword list surrounded by quotes. Your ad will then appear for any search that contains your keywords in the order you specify - even if other terms are also included in the search.

For instance, if you were phrase-match bidding on the term cell phone, your ad would also show for such searches as buy cell phone and cell phone repair, but not for cell phones.

3. Exact match

This is the most restrictive type of match. Terms are entered on a single line in your keyword list with brackets. Your ad will only appear for searches that exactly match all the terms in those brackets, in that order, and do not contain any other terms.

This type of matching requires more research but also provides the most targeted results. Interestingly, very few advertisers bother with exact match and this fact alone can open the door for you to gain the competitive advantage over your lazier competitors. We recommend that you use exact match for the majority of your terms.

Organize Your Ad Groups

Once you've created a keyword list and decided which level of matching to apply to each keyword or phrase, you can move on to the next stage of managing an effective keyword list: organization. It's always better to have a small but well-organized and easily trackable keyword list than a large but messy list. Any extra keywords you throw in when getting started are just going to muddy your tracking data and make it harder for you to tell which keywords are actually performing well. Our advice is: start small, grow smart.

Your small keyword list will gradually grow into a large keyword list as you gain feedback on your existing list and add keywords in response to that feedback. Your keyword list will grow in an iterative process as you keep and improve keywords that are profitable, discard those that aren't, and brainstorm new keywords and categories to add to the mix.

Keep your keywords organized into meaningful categories, rather than dumping a huge mess of keywords into Google and hoping something takes off. Organize your categories into similar keywords and phrases, and from there into similar max bids. Your most expensive keywords should go in their own category. As your list grows, you will want to fine tune your maximum bid by category, not by individual keyword. Manually adjusting each keyword in a 1,000 word list gets old really fast. Trust us on this.

The same goes for tracking. As your list grows, you'll want to track by category, not by keyword. Once you have identified high performing categories, then you can consider fine tuning and tracking within those categories. Ad categories allow you to get the big picture of your campaign rather than wasting time on each detail. The advertiser who is obsessive about adjusting every little keyword is probably losing more money on time spent than what they are earning through their campaign.

Most of your competitors will simply throw thousands of keywords against the wall to see what sticks. This often means that you can make headway even in very competitive areas by being smarter about your keyword selection, organization, and tracking. Remember, it's normal that most of your keywords will be either unprofitable or marginally profitable especially when first starting out. That's all the more reason you'll need effective organization and tracking to maximize the return on those keywords that are effective. The more your keywords are broken into defined categories, the easier it is to determine which type of keywords are performing, and the easier it is to optimize your campaign by turning entire groups of keywords on and off.


The foundation of an effective AdWords campaign begins with selecting the right keywords. Use all of the resources available in making your selections. Start small with the idea of building up your list, instead of the other way around. Be sure that you're using keywords that people are actually using to search. Focus your attention and effort on writing effective ad copy to elevate your click-thru rate (CTR) to a level that is as high as possible. That's the best way to beat the competition, especially when you're bidding lower than them. Dig deep for those overlooked keyword gems and act quickly whenever current events provide an opportunity to drive traffic based on keyphrases in the news.
Be very careful about selecting broad match and spend the time it takes to research exact match keyphrases. Be sure to utilize negative keywords as a defense against untargeted traffic - these alone can mean the difference between ads that make the 0.5% cutoff and those that don't. Get organized, set up your tracking systems, and diligently measure what's working and what isn't so you can quickly ditch the unprofitable as you methodically identify the profitable keywords and phrases.

Think of yourself as a search engine marketer and, as such, know that Google AdWords offers too much potential to be ignored. Their online advertising model is here to stay - therefore it's worthwhile for you to negotiate the learning curve. Follow these steps and, chances are, you'll gain a big leg-up on your competition because, after all, it's a complicated race that most companies won't know how to run nearly as well as you.

Next month, we'll explore this topic further, including steps you can take to write more compelling ad copy, create relevant landing pages that convert into sales, and use effective tracking to produce data you can use to continually optimize your Adwords campaign.

Until then,

By Esoos Bobnar - technical analyst
Planet Ocean Communications
Reprinted by permission from: SearchEngineNews.com 

How-To ... Tips, Tricks and Expert Guides

Embedded Match -- Advanced Keyword Matching Technique on Google AdWords

Google's keyword matching options help advertisers to better target their online audience. Besides its Primary matching options (Broad match, Phrase match, Exact match and Negative match) Google AdWords also offers Advanced matching option, so called Embedded Match.

Embedded Matching is the most advanced keyword matching technique. It combines the function of the Exact match and the Negative match.

As you may be aware, Exact Match displays your ad only on the exact keyword or phrase. For example, if you have exact match keyword Digital Camera you ad will appear for the search term Digital Camera but not for Digital Cameras or Digital Camera Tips and so on.

Digital Camera
Digital Camera Tips
Digital Cameras

Negative Match does not display your ad if the search query contains a negative keyword. Let's take the broad matched keyword Digital Camera as an example along with the negative keyword USED. When search is performed your ad would appear for example for the search term Digital Camera Store but not for Used Digital Camera.

Digital Camera Store
Used Digital Camera

Embedded Match combines the benefits of both -- Exact Match and Negative Match. It displays your ad on all related variations of the keyword, except the exact match of that keyword. For example you sell merchandise in relation to the movie Finding Nemo, but not the movie itself. It is confirmed that people searching the term Finding Nemo are looking for the official movie website. In this instance you want your ad to appear for all variations of the term Finding Nemo but not only for Finding Nemo:

Finding Nemo Toys (Your ad displays)
Finding Nemo Games (Your ad displays)
Finding Nemo (Your ad does NOT display)

By combining matching techniques you can refine your targeted audience which will help you to maximize the performance of your ads.

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