Specific keyword phrases

Does google target its searches for the very best match?

[ghostMonkey]

What I mean is, say I create an ad with a single popular keyword - "widget" - and bid 0.04. Searching on "widget" or "blue widget" I'd expect to see my ad low down, say position 15.

But what if I then change the keyword to something that contains the word "widget" but is not used by any of my competitors, say "blue spiky metal widget". Then I do a search. I'd expect on any search for "blue spiky metal widget" to be No. 1 in the search results, over my competitors who have not specified this keyword, even though they might be bidding 10X more for the term "widget".

But I don't think this happens. I think my competitors still appear above me because they've paid more, even though my advert is more specific to the search.

I'm not 100% sure this happens, because obviously I don't know what anyone else bids on, but I don't think it does.

Does anyone know for sure?

[Brett_Tabke]

You are correct. It is who ever buys the generic macro keyword and targets the offspring children keywords.