Google Ads: Exact vs. Phrase Match - Which Performs Best?

When setting up Google Ads campaigns, choosing the right match type can significantly impact the performance of your ads. In this post, we'll dive deeper into the nuances of exact match and phrase match, comparing their benefits, challenges, and best use cases to help you make informed decisions for your campaigns.

Understanding Keyword Match Types

Before we delve into the comparison, it's crucial to understand what keyword match types are. These are settings that control how closely a user's search query must match your keyword for your ad to be considered for the auction. The three main match types are:

Broad Match: Targets a wide audience by matching ads to searches that include misspellings, synonyms, related searches, and other relevant variations.
Phrase Match: Targets ads to searches that include the meaning of your keyword. This match type offers a balance between reach and relevance.
Exact Match: The most precise option, showing ads only when the search query matches your keyword exactly or with close variants.

This post focuses on the strategic comparison between Exact Match and Phrase Match.

What is Exact Match?

Precision: Exact match is the most restrictive keyword match type, ensuring your ads appear only when a search query matches your keyword exactly, or includes close variants such as misspellings, singular or plural forms, abbreviations, and reordered words that don't change the meaning.
Control: This match type offers the highest level of control over who sees your ads, making it ideal for targeting a highly specific audience.
Example: If your keyword is [best running shoes], your ad may show up for searches like "best running shoes" or "running shoes best," but not for searches like "best running shoes for marathon" or "cheap running shoes."

What is Phrase Match?

Flexibility: Phrase match provides more flexibility, allowing your ad to show when the search query contains your keyword's meaning, even if additional words are before or after your keyword. This option balances precision and reach.
Reach: Phrase match is less restrictive than exact match, offering a broader reach while still maintaining some level of targeting control.
Example: If your keyword is "best running shoes", your ad might appear for searches like "best running shoes for women" or "buy best running shoes," but not for unrelated searches like "best basketball shoes."

Performance Comparison

1. Cost

Exact Match: Often has a higher cost-per-click (CPC) due to its targeted nature. However, because it targets a more qualified audience, it can lead to higher conversion rates and a better return on investment (ROI).
Phrase Match: Generally has a lower CPC compared to exact match but may attract less qualified clicks, which could increase your overall spend without a corresponding increase in conversions.

2. Traffic Volume

Exact Match: Generates lower traffic volumes because it targets a very specific audience. This can be beneficial for campaigns focused on high-intent users.
Phrase Match: Casts a wider net, generating more traffic and impressions. While this can increase brand visibility, it may also result in a lower conversion rate if the additional traffic isn't as relevant.

3. Click-Through Rate (CTR)

Exact Match: Typically results in a higher CTR because ads are shown to a highly relevant audience. Users are more likely to click on an ad that closely matches their search intent.
Phrase Match: Might see a lower CTR compared to exact match due to the broader reach, but it can generate higher overall impressions, which can be advantageous for awareness campaigns.

When to Use Each Match Type

Exact Match: Precision Targeting

Best For:
- Campaigns with a clear focus on conversions and a specific target audience.
- High-value products or services where precision is key, such as niche B2B services or luxury goods.
- Situations where you have a deep understanding of your audience's search behavior.
Example Use Case: A legal firm specializing in corporate law may use exact match for keywords like [corporate law attorney] to target users specifically searching for their services.

Phrase Match: Balanced Reach

Best For:
- Campaigns aiming to increase brand visibility and attract a larger, but still relevant, audience.
- Exploring broader market opportunities or running awareness campaigns where volume is a priority.
- When testing new keywords to discover which variations convert best.
Example Use Case: An online retailer may use phrase match for keywords like "affordable running shoes" to attract a wide range of users searching for running shoes, including those who are price-sensitive.

Advanced Strategies for Optimization

1. Combining Match Types

Consider using both match types in your campaigns to maximize reach while maintaining control over ad spend. For example, you can use exact match for your most important, high-converting keywords and phrase match for exploratory campaigns.

2. Utilize Negative Keywords

Negative keywords are crucial, especially when using phrase match. They help filter out irrelevant traffic by preventing your ads from showing for certain search terms. For instance, if you're selling premium products, you might add "cheap" or "discount" as negative keywords.

3. Regularly Review Search Query Reports

Analyze the search query reports to identify which search terms are driving the most valuable traffic. This data can inform your decision to shift certain keywords from phrase match to exact match or to add new negative keywords.

4. Smart Bidding with Match Types

Leverage Google's Smart Bidding strategies in conjunction with your chosen match types to optimize for your performance objectives. For broad-reaching campaigns using phrase match, Smart Bidding can help fine-tune bids based on real-time data and user intent.

Conclusion

Choosing between exact and phrase match isn't a one-size-fits-all decision. It depends on your campaign goals, target audience, and how much control you want over your ads. Exact match provides precision and is ideal for high-intent searches, while phrase match offers a balance of reach and relevance, making it suitable for broader targeting.

By understanding the strengths and limitations of each match type and applying advanced strategies, you can optimize your Google Ads campaigns for better performance and ROI. Regularly reviewing and adjusting your keyword strategy will help ensure your campaigns stay aligned with your business goals.

Ready to optimize your Google Ads? Start experimenting with both exact and phrase match in your campaigns and monitor the results to see which approach drives the best outcomes for your business.