I have a "persuasion" problem with somebody. Even knowing where to look for such a study would help me!
For search results where there are a lot of listings that include company names and the ads look different, then using the search term with a catch phrase or something, I think definately helps the CTR.
For search results where every ad looks the same. You look at the ads, and every title is identical, not using the search term or using a different title than everyone else, even if you include the search phrase, makes your ad stand out a lot more. Of course, the premium posiitons seem to do well in this case with just the KW phrase, as its right in front of you when you complete the search. Its when someone scans the right side ads, that something different really stands out.
I'm sure that having ad wording contain some or all of the same words that the searcher used helps the clickthrough rate. I know Google makes this even more important by displaying words in boldface if they match a word in the search phrase. But is there any existing statistical proof for this? Has anybody ever published a study on the extent to which this influences clickthrough? Or kept track?
I have a "persuasion" problem with somebody.
Regarding that 'persuasion problem', cgrantski:
When I try to make the case for very targeted Ads/keywords, I often ask advertisers to step out of their expert role - or their business-owner role - and examine their behavior as a consumer.
Here's a short quizz:
As a consumer, who knows nothing about a business advertised on AdWords except what appears in the ad, which of the following would you be more likely to do?
* Click on an ad that is about precisely what I searched for, and even said so in the headline, or
* Click on an ad that was only remotely related to what I searched for, or
* Click on an ad that was entirely unrelated to what I searched for.
Often, when I ask advertisers to do this they say something like "Oh, I get it now."
Perhaps this will be the case with your client as well.
AWA
For example, if I'm targeting California to sell my blue widgets, I use the headline "Blue Widgets, Calif." However, using keyword phrases from the Overture search term suggestion tool can often produce funky arrangements of KWs, such as "widget california blue". I agree that giving the searcher exactly what he/she is looking for is a good idea, but there is nothing weirder than an ad headline that is "Widget California Blue".
What I'm saying is, use common sense to construct the ad. Don't just plug a KW phrase directly into a headline if it doesn't make sense. However, don't try to be too clever either because it may make your ad appear to be irrelevant. At some point in your ad, you should use every KW the searcher is looking for and try to present them in the order they searched for them, unless it reads funny.
Dynamic keyword insertion is great for setting up campaigns quickly but the more your creative "talks" to the person searching as opposed to just echoing back what they type in the better the conversion rates seem to be.
However, using keyword phrases from the Overture search term suggestion tool can often produce funky arrangements of KWs, such as "widget california blue".
Good point, definitely ignore Overture KW order.
Another thing to consider is that bid keywords are bolded in the ad, which makes them more clickable, and they tend to float a little higher up.