How does dynamic wildcard insertion work?

[BookSiberia]

Can anybody explain how that works - am I correct in thinking that I can somehow create a dynamically-generated ad on the fly based specifically on the keyword or keyword phrase that the searcher typed in?

Are there any other uses?

Examples? It seems quite intriguing as a technique, but I bet it can come back and really bite you?

I tried doing a google search using

dynamic wildcard insertion adwords

but I din't get much except a brief mention in one of the threads here on webmasterworld.

[eWhisper]

This search [google.com] will show you quite a few threads about this technique.

Keyword dynamic insertion:
[webmasterworld.com...]

URL dynamic insertion:
[webmasterworld.com...]

[mwilliams]

i had been wondering how to do this. i couldn't find it in the AdWords Support Center, though. does anyone know if it's in there anywhere? or if it's not, why not? do they not want many people to use it? (maybe i just need to learn my way around the Support Center a little better....)

[eWhisper]

The only place I've ever seen it appear (in a google document) is the Maxium Effect PDF linked to from this page:
[google.com...]