Bidding Specific Keywords vs Bidding Phrase and Broad on Core Terms

[Bidman]

Please bare with me on this one as I will try my best to explain it. I've run numerous tests on exact vs phrase vs broad match on my very broad core traffic words and as most of you probably know they usually perform best in that order.
In each one of my given categories there are a very small amount of broad keywords that net all of the traffic. For example if I was selling "Beds" almost all of the traffic would come from the keywords bed(s), mattresse(s), platform bed(s), wood bed(s), wrought iron bed(s), twin size bed(s), king size bed(s), etc.. There are also a lot of other more specific terms you could bid on like Serta Bed(s), Serta Mattress(es), Buy Serta Bed(s) Comfortable Bed(s), etc..
As I of know I am bidding on all of the more specific terms like these as well as the core broad terms on all match types. I could choose not to bid on these more specific terms like "Serta Beds" because my Phrase Match or Broad Match on my main terms should pick up the traffic.
On Overture where you are unable to put a broad or phrase match on a word and net a lot of traffic you are then required to dig up these specific terms. Usually these terms cost little to nothing but convert well since they are so specific thus increasing the quality of traffic. I find at Google these same specific terms cost 10 times what they do on Overture and in most cases are the very terms hurting my bottom line. Why do these specifc terms at Google cost so much? Are they competing with my very own Core Terms on Phrase and Broad Match thus increasing the bid price to hold their position? For example, is Serta Mattress competing with Mattress Phrase Match within my own Campaign? Would it be a better idea to just bid the broad terms on all match types because they cost a lot less then the specific terms do? Is anyone else experiencing this?

[FromRocky]

Is anyone else experiencing this?

Yes, I am

Why do these specifc terms at Google cost so much?

Good question. I will give you my thoughts on why. It's a little late up here.

Are they competing with my very own Core Terms on Phrase and Broad Match thus increasing the bid price to hold their position? For example, is Serta Mattress competing with Mattress Phrase Match within my own Campaign?

No to yours but Yes to mine

Would it be a better idea to just bid the broad terms on all match types because they cost a lot less then the specific terms do?

Depends

[Bidman]

Thanks FromRocky.
I would really like to get some more in depth insight from you and others. Thanks again.

[eWhisper]

Often specific terms cost more because they convert higher, thus they are worth more.

Which would you pay more for?
widget
blue widgets
buy blue widgets

The trick is to increase your CTR while not overly increasing your CPC. The first step on this path can be done with Negative Keywords [webmasterworld.com].

Look at what words are converting. If they are converting well, then they are worth more to you, and you can increase your bids on these specific keywords. If they aren't, then lower your bids. You're looking for CPA based on keywords.

As far as matching options go, the reason that generic broad matches often look cheaper is because you're being shown on a lot of searches which may not be relevant to you. If you bid on bed, your keywords might be shown on 'bed & breakfast', 'bed sores', bed table', etc. Are these relevant to you?

Overture uses an autocorrect option for many keywords, so you can't bid on as many keywords there as google (i.e. on overture 'bed table' & 'table bed' are considered the same keyword). This leads to a fundamental difference in how the systems work - and thus the bids and keywords must be, in many cases, treated independently of each other when looking at bid & CPA costs.

One basic tip in Google to force the system to show your phrase match or more specific terms over the broad matching is to post a max bid for the group, and then powerpost the max bids for the broadmatch slightly lower. This should force the system to show your more specific keywords first, thus giving you better stats on what keywords are really converting.

Hope this starts to answer your question.