At Kinetic319, we believe strongly in listening to what the data has to say. We recently conducted primary research to discover the impact phrase match keywords are having on the advertising landscape. This blog post was created based on the results of that analysis.
Do you remember when phrase match used to be the reliable middle child of your PPC keyword family?
Not as rigid as exact match, but still more refined than broad match. Those were simpler times.
Today, Google has flipped the script, blurring the lines so much that phrase match keywords are now behaving more like broad match with a phrase filter.
Confused? You’re not the only one. Kinetic319 conducted an analysis of MCC data from clients in industries including real estate software, consumer goods (spirits and wine), alcohol delivery and retail, culinary education, health and wellness apps, healthcare technology, financial services, and manufacturing technology.
In the report, we found that the change in Phrase Match behavior has led to a 20% increase in search query volume, yet conversion rates have declined for many industries.
In our analysis, conducted by Jamie Jones, Associate Director of Biddable Media at Kinetic319, we found that Phrase Match performs well in brand-focused, product-driven verticals, but struggles in more loosely defined markets.
Wherever your business may fall, this shift in SEM keyword strategies is shaking things up for advertisers everywhere. And if you’re running PPC campaigns, you need to pay close attention.
What has happened to the phrase match we all used to know and love? And more importantly, what does this mean for your campaigns and ROI? We’ll break it all down.
The Evolution of Phrase Match (and Why it Matters)
Once upon a time, phrase match keywords were the happy medium in keyword targeting.
They offered a perfect blend of specificity and reach by triggering ads only when a user's search query contained the exact phrase or close variations of it, maintaining your reign over irrelevant clicks while still casting a moderately wide net. They weren’t as narrow and limiting as exact match, nor were they as unpredictable as broad match.
But as Google’s algorithms have evolved to focus increasingly on intent and audience signals, the nature of phrase match has shifted.
According to Jamie Jones, “Phrase match is no longer the middle ground it once was. Google has blurred the lines, making it behave more like broad match with a phrase filter.”
Essentially, phrase match no longer holds the same level of control it used to.
Instead, it now leans toward broad match behavior, aiming for a larger audience reach while still (loosely) maintaining the phrase’s intent. This means you need to rethink how you approach phrase match keywords in your campaigns.
Why does this matter?
For one, you need to be more strategic than ever to avoid wasted ad spend and ensure your ads are targeting the right people. Second, this shift highlights the increasing reliance on smart bidding and audience signals over rigid keyword match types.
The days of "set it and forget it" campaigns? They’re officially over.
Understanding Keyword Roles in Your PPC Strategy
Before we talk about how to adjust your strategy, it’s important to clarify the new roles of the three match types in Google Ads.
Here’s what you’re working with in today’s PPC landscape:
-
Exact Match: This is still the gold standard for precision. It helps you make sure your ads are shown only when someone searches for the exact term or very close variations. If you’re laser-focused on intent and ROI, this is your go-to.
-
Broad Match: This is for maximum discovery and scale, capturing searches that may be loosely related to your keywords but can unlock new audiences.
-
Phrase Match: Think of phrase match now as a softer version of broad match. It filters results based on the phrase but with far less rigidity than before, meaning it can behave unpredictably if left unchecked.
According to Jones, “The key to success now is balancing control and reach: lock in intent with exact match, scale with broad match, and monitor phrase match carefully to avoid irrelevant spend.”
Why Search Term Reporting Matters More Than Ever
When Google rewrote the keyword playbook, they handed advertisers a new challenge. Phrase match is more flexible than it used to be, so if you’re not keeping an eye on your search term reports, you’re practically throwing money at keywords you don’t want.
Phrase match may have taken a trip to the wild side, but steady monitoring of search terms can help you steer it in the right direction. Here’s how to stay on top of it:
Review Search Term Reports Regularly
These reports are your new best friend. Comb through them frequently to identify queries that are driving quality traffic. If a certain phrase or query consistently converts, it might be time to elevate it to an exact match keyword for greater precision.
Add High Performers to Your Arsenal
Once you’ve identified those superstar queries, lock them down. Create exact or broad match keywords based on their performance to give you more control over when and where your ad appears.
Cut the Waste
Phrase Match tends to be most effective when brands are strong and search intent is clear. Industries with broader, more research-oriented queries tend to see lower performance and higher costs.
What does this mean for you? You need to spot those irrelevant search queries and pause underperforming keywords. With phrase match trending broader, you’ll need to be ruthless. Anything that siphons away your ad budget without delivering results has to go.
Breaking It Down: Industry Recommendations
Understanding how phrase match performs across industries can help you decide when to use it. Here are some findings and actionable recommendations broken down by verticals:
Consumer Goods and Retail
Across the consumer goods and retail sector, Phrase Match campaigns typically see a click-through rate (CTR) of ~10.3%, with conversion rates averaging ~4%. Cost per conversion remains competitive at ~$11, and return on ad spend (ROAS) is robust at ~5.9.
-
Findings: Phrase match works well for mid-funnel and bottom-funnel targeting, especially for established brands with strong product alignment.
-
Recommendations: Use phrase match to identify new conversion opportunities but monitor costs closely. Elevate high-performing queries to exact match for better ROI.
Professional Services and SaaS
-
Findings: Industry reports show phrase match often attracts exploratory or irrelevant search queries, increasing cost per conversion.
-
Recommendations: Prioritize exact match for intent-focused campaigns. Use audience targeting to layer specificity onto otherwise broad phrase match results.
Health and Wellness
-
Findings: Health-focused campaigns frequently see fragmented or inconclusive results with phrase match, likely due to ambiguous search intent.
-
Recommendations: Limit phrase match usage and lean more heavily on exact match and retargeting. Tailor campaigns based on demographic and behavioral audience insights.
E-commerce and On-Demand Delivery
-
Findings: Delivery services report high ROAS, attributed to localized targeting and narrow query filters within phrase match.
-
Recommendations: Use phrase match for rapid testing and discovery, but refine targeting by bolstering negative keyword lists.
Education and Training
-
Findings: Phrase match supports discovery but tends to require higher oversight in education sectors targeting broad keyword themes.
-
Recommendations: Segment campaigns into clear themes to enhance control over performance metrics and conversions.
How to Adapt Your Approach to Google’s Evolving Algorithms
If you think match types alone could drive stellar paid campaigns, think again.
According to Jamie Jones, “Google’s evolving algorithms mean we rely less on keyword match types for control and more on smart bidding and audience signals.”
Basically, match types are no longer the MVP. Here’s your updated PPC strategy:
Smart Bidding Rules the Game
Relying on manual CPC? Time to step into the future.
Smart bidding leverages machine learning to determine the optimal bid for each auction, taking intent, competition, and other factors into account. It’s like having a strategic partner working behind the scenes.
Audience Signals for the Win
Think of advertising like a symphony (no violins required). Exact match is the conductor, broad match is the orchestra, and phrase match is the tempo. Meanwhile, audience targeting is the melody you create by leveraging all three at exactly the right time and place.
For peak performance, identify and segment your audiences to drive contextual relevance. Integrate demographic, behavioral, and retargeting data with your keywords for maximum impact.
How to Manage Phrase Match in the New Landscape
Phrase match needed supervision before, but now, it’s screaming for your attention. Follow these steps to keep it on track:
Audit Campaigns for Keyword Overlap
Your phrase match keywords shouldn’t cannibalize your exact match or broad match ones. If a specific keyword-driven query fares better in exact or broad match campaigns, consider pausing its phrase match version.
While you’re at it, increase your budget allocation to exact match keywords for high-intent queries. They’re the backbone of core keyword control and give you the precision you need to target effectively.
Balance Reach and Intent
Exact match keywords give you laser focus. Broad match keywords drive discovery. Phrase match? To continue the analogy from earlier, it’s the middle sibling trying to figure itself out.
Strike a balance by using each match type for its strengths. Exact for precision, broad for scaling, and phrase only if it’s delivering meaningful results. But don’t forget to employ broad match strategically, too. Couple it with audience signals and automation tools to grow your reach efficiently while minimizing waste.
Use Exclusions Wisely
Phrase match can sometimes lead to irrelevant clicks (and wasted dollars). Set up and expand your list of negative keywords on a regular basis. This will act as a safety net, helping you make sure your ads don’t show up for terms that don’t align with your goals.
Better yet, make your negative keyword lists a living, breathing entity. Update them frequently to keep irrelevant traffic at bay and protect your campaign dollars.
And don't just rely on phrase match exclusions; segment campaigns by brand focus, user intent, and geography to further refine your optimization efforts.
Go Beyond With Search Term Audits
Conduct regular search term audits. Yes, it sounds tedious, but it will help you catch sudden query trends and shifts before they gobble up your budget. Being able to respond quickly can save your sanity and your ROI.
Find the Perfect Match in Kinetic319
Feeling lost amidst all the changes? Don’t worry. That’s what we’re here for. At Kinetic319, we specialize in turning keyword chaos into tightly orchestrated performance campaigns.
If you’re confused by all the keyword noise, get in touch. We’ll turn your PPC strategy into a masterpiece.
Because when it comes to paid search, precision wins. Guesswork doesn’t.