The Paid Search Podcast | Episode 450: How Google Ads Keyword Matching Works

Host: Chris Schaeffer, Certified Google Ads Specialist
Release Date: February 17, 2025

Introduction

In Episode 450 of The Paid Search Podcast, host Chris Schaeffer delves deep into the mechanics of Google Ads keyword matching. Aimed at business owners, digital marketing professionals, and PPC freelancers, this episode unpacks the complexities behind how Google interprets search queries and matches them to advertisers' keywords. Whether you're a seasoned marketer or new to Google Ads, Chris promises enlightening insights that can transform your advertising strategy.

Listener Question: Understanding Impression Share and Lead Generation

Timestamp: [02:30]

The episode kicks off with a compelling question from Francis, a marketing agency owner from Montreal. Francis grapples with the concept of Impression Share, observing that:

"For some campaigns, I have an impression share of 40 to 50%, which is very good. Yet we struggle to generate a good volume of leads. On the other hand, for campaigns with an impression share of 15%, we're able to generate leads successfully."

Chris addresses this by emphasizing that Impression Share is not a direct indicator of campaign success. He explains that a higher impression share merely signifies that an ad is visible more frequently, but it doesn't necessarily translate to conversions if the traffic isn't relevant. Using a simplified example, Chris illustrates how two campaigns with different impression shares can yield varying results based on the relevance of their keywords to the intended audience.

"Search impression share is not a measurement of success. Do not use impression share as your primary metric; conversions should take precedence." — Chris Schaeffer [15:45]

Key Takeaways:

• Primary Metrics Over Secondary Metrics: Focus on conversions, sales, and leads rather than just impression share.
• Relevance is Crucial: High visibility is ineffective if the traffic isn't qualified or relevant to the offering.

Main Topic: How Google Ads Keyword Matching Works

Timestamp: [20:10]

Chris transitions to the core of the episode: the intricate process of Google Ads Keyword Matching. He references an official Google document to break down the steps involved from the moment a user enters a search query to the display of an ad.

Step-by-Step Breakdown

1. Search Interpretation

   • Google’s Understanding: When a user types a query, Google's system interprets it using spell corrections, synonyms, and related concepts.
   • "The system interprets their input using information like spell corrections, synonyms, and related concepts." [22:00]

2. Eligibility Check Based on Match Type

   • Match Types Matter: Broad match keywords trigger more searches compared to phrase and exact match types.
   • "Broad match keywords will match more often than exact match because of the leniency of the matching protocol." [24:15]

3. Keyword Prioritization

   • Exact Matches First: Google prioritizes keywords that exactly match the search term before considering others.
   • "Eligible keywords that are identical to the search term are prioritized in the list." [26:40]

4. Ad Assembly

   • Responsive Search Ads: The system automatically compiles the best-performing ad creatives from your responsive search ads.

5. Bid Calculation

   • Manual vs. Smart Bidding: Manual bidding uses predefined bids, whereas smart bidding leverages data across the account to predict performance and optimize bids dynamically.
   • "Smart bidding uses data from across your account to predict performance, unlike manual bidding which is static." [30:05]

6. Ad Rank Determination

   • Combining Factors: Google calculates ad rank based on bid amount and quality score to determine the ad's position.
   • "The ad with the highest ad rank is shown first, determining your placement in the auction." [35:20]

7. Auction and Display

   • Final Selection: The ad with the highest ad rank among all competitors is displayed to the user.

Semantics Over Syntax

Chris emphasizes that semantics—the meaning behind the search terms—now plays a more significant role than mere syntax. This shift means that Google understands the intent behind searches rather than just the exact words used.

"Keyword matching in Google Ads has evolved to prioritize semantics over mere syntax. It's the meaning behind the search that drives matching." — Chris Schaeffer [28:50]

Impact of Match Types:

• Broad Match: Offers greater reach by considering related searches and user intent but may risk irrelevant traffic.
• Exact Match: Provides precise targeting but with limited reach.

Key Takeaways and Best Practices

Timestamp: [40:00]

1. Focus on Conversions: Prioritize metrics that directly impact your business goals, such as leads, sales, and conversions, rather than secondary metrics like impression share.

2. Understand Google's Interpretation: Recognize that Google interprets search queries based on intent and semantics, which means your chosen keywords need to align with what users are truly seeking.

3. Optimize Match Types Wisely: Utilize a mix of broad, phrase, and exact match types to balance reach and relevance. Regularly review and adjust based on performance data.

4. Leverage Smart Bidding: When appropriate, implement smart bidding strategies to harness Google's data-driven approach for optimizing bids and improving ad performance.

5. Continuous Adaptation: Stay informed about the dynamic nature of Google Ads. Regularly revisit and adjust your strategies to align with evolving algorithms and market trends.

"Google Ads is now a very dynamic system that's constantly changing. You have to change and adapt to stay effective." — Chris Schaeffer [42:15]

Conclusion

In this episode, Chris Schaeffer provides a comprehensive exploration of how Google Ads keyword matching operates, underscoring the importance of understanding both the technical processes and strategic implications. By focusing on meaningful metrics and adapting to Google's evolving algorithms, advertisers can enhance their campaign effectiveness and achieve their marketing objectives.

For those seeking personalized guidance, Chris offers account audits and live consulting to help optimize Google Ads performance. Interested listeners can reach out to him at chris@chrisshafer.com or visit his website at chrisha.com.

Resources Mentioned:

• Optio.com PSP: Although the episode includes mentions of Optio.com PSP as a sponsor, Chris encourages listeners to explore this tool for managing and optimizing Google Ads accounts.

Note: This summary focuses solely on the content-rich sections of the podcast, omitting introductory remarks, advertisements, and outro segments to provide a clear and insightful overview of the episode's key discussions.