cline - 3:58 am on Sep 25, 2007 (gmt 0)

Re AWA's question:

In selecting keywords and deciding bidding the objective is to optimize the keyword relevancy, of which the metric is conversions, with CPC costs, all the while maximizing total profitability, which entails maximizing the audience within the aforementioned constraints.

As good as the Adwords keyword tool is, it is far from being exhaustive about all keyword permutations people actually use. If we use exact match, we fail to maximize the audience. And we can't just lay down a massive pattern of all the permutations we can think of, because we're not allowed that many keywords. True broad match is an excellent compromise.

We hate expanded broadmatch because it destroys the optimization of keyword relevancy and bidding. Expanded broad match typically kicks in on keywords with high bids and CTRs. When that happens, expanded broadmatch goes looking for other keywords to run, using only CTR as a metric. But advertisers don't want mere clicks. We want conversions. The typical expanded broadmatch ends up being high CPC and poorly converting. It's highly unprofitable.

Further, the user is being harmed too. They're being shown an ad that they think is relevant, but when they get to the site they see it isn't relevant.

And who benefits? Google. And takes it straight out of the credit card account leaving the advertiser largely in the dark about what hit them.

One simple example. Say you sell widgets wholesale and broad match "wholesale widgets", as widgets come in a mind-boggling variety of colors, sizes, and shapes. You're b2b. A typical b2b transaction is, say 30x a b2c transaction for widgets, so acquiring a customer is worth a lot. You bid high. You've got a good ad and a good reputation in the industry. You get high CTR. Expanded broadmatch kicks in and decides that wholesale=cheap and starts running your ad on "cheap widgets". You get lots of clicks from consumers, who promptly abandon your site because you don't sell to consumers.

So, what do you do? Go to exact match and leave lots of long-tail traffic on the table, or put in hours and hours tracking down all of the undesirable broadmatch terms and negativing them out so that you can have a full set of the desired traffic?

Or beg, plead, cajole, and curse Adwords to get that!%#@$!@# thieving E * V * I * L expanded broadmatch shut down.

I've been saying it for 3 years now: Please, please, PLEASE! turn that thing OFF!