For example, next to my 1 ad it says served 42.6%. If I only have 1 ad how can it only be shown 42.6% of the time? What is being shown the other 57.4% of the time?
Then I noticed that my ads aren't really showing properly. For example, say one of the keywords I'm bidding on is xyz. My ad shows when you search for xyz, but not abc xyz or anything else. It's acting as if I bid on [xyz] but I didn't. It's xyz without quotes or brackets, so it should show up for any term that contains xyz. After 390 impressions it only has 2 clicks and the reported CTR is 0.5% but it's listed as moderate, so I don't understand.
Same thing with my other keyword abc. If you search for abc it shows up, but if you add anything else to the search term it doesn't show up. What's going on?
I think Google's logic is faulty. Many advertisers use a broadmatch word or term - and usually at least a few negative keywords - just to save the time and hassle of having to enter 100s of specific terms they really want to bid on.
Oftentimes they know in advance the term won't do well as an exact match, but it will do great as a broad match. Forcing the new term to operate only as an exact match seems silly, and will ruin these campaigns. This forces advertisers to work harder, and requires Google system to waste more resources (I assume it uses a lot more resources for Adwords to keep track of 100s or 1000s of terms than 1 broadmatch term).