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AdWords ROI Across Match Types

Posted in Google AdWords by Tom on Nov 8th 2007

Here are some stats for one of the campaigns I manage, showing how ROI can differ hugely according to match type. A few points to note which show how reliable these results are:

  • almost every keyword has been added for each match type
  • the bid amounts are the same across match types
  • data comes from approximately 20,000 keywords
  • took over a year to accumulate
  • has a very mature negative keyword list of over 400 words
Match Type Profit ROI Expense Income
Broad £3450.75 30% £11860.02 £15310.77
Phrase £3756.34 69% £5487.47 £9243.81
Exact £14092.38 128% £11071.72 £25164.1

Conclusions

The more closely you target your keywords, the higher your ROI. In this campaign, exact match produces 4 times the ROI of broad match, and nearly twice that of phrase match.

Broad match is great for finding new keywords to bid on, but it also finds a whole lot more that won’t produce results for you. This emphasises how important it is to regularly check your server logs & look through the raw search queries for keywords to add to your negative list.

Does broad match go too far when expanding your keywords for related searches? If I didnt have such a good negative keyword list for this campaign, I could very well have made a negative ROI on broad match.

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