Confused on usage of dynamic keywords

dynamic keywords in adwords?

[grayceworks]

Hi. I am trying to implement the dynamic keywords thingy in google adwords. I am a bit confused on the sytax.

Do I do like this:

heading: Find {keyword} at MySite
description1: Shop our exclusive selection
description2: of {keyword}, home decor, and more!
display url: http://www.example.com/?kw={keyword}
actual url: http://www.example.com

I have seen a lot of questions and answers on the subject, but I am kinda new to some aspects of coding, so I don't know if I'm reading/understanding the answers correctly.

If this is not correct, can someone please show me a correct example?

Also, I am confused on what some posted as to {keyword: backup}

Does that mean that I would type in an alternate phrase if they keyword was too long?

like {keyword:Home Decor}?

Also, regarding keywords and adword ads...

So far I have created several ad groups, such as decor, furniture, lighting, shades, porcelain. Then I've sorted my sites keywords into each of these ad groups, to organize them, and then created separate ads for each group, depending on the type of item. Am I doing this correctly?

Or should there be a way to have all my keywords in one place, but only have certain ads associated with certain keywords?

Any insight is appreciated by this newbie...

Thanks!

[sagerock]

I believe the syntax is this: {keyword:}

You are correct with this as your backup if your phrase is too long: {keyword:Home Decor}

It sounds like you are setting up your ad groups correctly.

I think we might be talking about this in the wrong forum, however. This is Yahoo world.

[grayceworks]

Thank you for your response... sorry for posting in the wrong forum.. I posted here since it was where I found a prior post about the dynamic keywords and I had just clicked "post new topic" at the top without really noticing that it was the yahoo forum... lol...