Keywords play an essential role in the success of your digital marketing campaigns. Online marketers have to consider their target audience when carrying out keyword research and then incorporate the results into their content strategies.
This is important because 53.3% of all website traffic comes from organic searches. Your website won’t be served to those using the search engine if your content doesn’t include the right keyword and key phrases/phrase match keyword.
Similarly, finding the right keywords is important for the success of your paid ad campaigns as well. Google Ads allows keywords match types to be set on the keywords, which are parameters that decide the triggering of your PPC ads. With these parameters, Google provides control to advertisers on the PPC ads and keywords.
Read ahead to see what keywords match types are and their importance in online marketing.
A keyword match type is a Google AdWords keyword option that delivers an ad on Display Network and Google Search Network. According to the keyword option you select, the ads are shown to either a special user group or a broad target group.
However, the keywords are quite generic and broad to ensure that you factor in for the maximum number of users.
When you select a PPC keyword match type, you ask Google to match your ads to the user searches in a particular way. For instance, an exact match can be too specific and picky, while a broad one will show many user searches that may not apply to your product or service and therefore be of no use to you.
The keyword match type integration of your choice helps the algorithm decide the platforms where your ads appear. As a result, you can target the right and more specific audience. In addition, the keywords match type you select determines the relevancy of the presented ad and the search keywords.
Match type and keyword selection both help to target people when they search in Google. With this match-type option, you can use all the available matches and get a high return on investment for your PPC ad campaigns.
It is essential to understand the different match types and execute a combination of them to help you create an effective Google Ad campaign. You can avoid irrelevant keywords, which will help you save the budget that you can use to drive more conversion rates.
Your keyword match types ensure you get the most value from your PPC advertisement budget. The four main PPC keywords match types determine how a search query matches your Google Ads account keywords. These include phrase match keyword, Broad match keywords, Exact Match, and Modified broad match keywords.
With a proper understanding of each of these match types, you can choose the most suitable one for your campaign to improve your ROI ultimately.
Your keywords are assigned a default type which is the broad match. This lets search engines display your ads for terms that are your account’s keyword variations. Your ads can be displayed on searches with synonyms, related searches, misspellings, other relevant variations, and singular or plural forms.
This casts the widest net possible, bringing in all kinds of searches to show your ad. However, it is essential to realize that broad match keywords can waste PPC’s budget when it displays your ad on irrelevant keyword variations.
For instance, if you own musical instruments with a good variety of acoustic guitars at an Orange County shop, your selected keyword will be “Acoustic Guitar Orange County,” and Google can interpret it for the following search matches:
When you use the broad match type, you can end up paying for results or search terms that are different from the keywords you bid on, resulting in the Iceberg Effect. As a result, you can overpay for irrelevant search topic ads and have minimal control over the search terms your ad is displayed for.
If you want to generate the maximum traffic for your landing page, a broad match keywords is beneficial. However, you can get lost in the vast amounts of irrelevant terms that show up in your search term report, which will be of no use since you want to attract potential customers.
A broad match generally generates many clicks for your website, but not all of them are from your targeted audience. The chances of conversion are significantly less, resulting in high ad costs with less ROI.
A broad match is a good option for your ad campaign if you cannot create in-depth keyword lists. If a particular ad gets no clicks on some keyword variation, your ad will no longer be displayed by Google’s system for that search term. As a result, the click charges will decrease for your low-performing keyword variations so that you can spend more on relevant keywords.
You can use negative keywords with phrase and broad match keywords, as the addition of negative keywords helps increase targeting, improving your ROI when you use the broad match. This means that when you designate a negative keyword, Google can never display your ad when that term is used in a search.
Use a minus sign with a keyword to create a negative keyword and clock a significant amount of irrelevant traffic. But know that this will limit your reach.
This is a more trustworthy and responsible version of the broad match type for your Google Ads budget. It acts as a moderation between the broad type and other restrictive match types. In addition, it allows you to pick specific search terms that should be in your ad for it to be displayed.
Add the plus sign with one or more words and create your broads match keywords. These appear in a user’s search in no specific order. Broad match modifiers give more control and visibility over how you spend your ad budget than the broad match type.
Furthermore, broad match modifiers are safer with a greater click-through rate (CTR) than broad matches. This happens because synonym or related search keywords do not trigger your ads.
This match type gives a range of searches with helpful keywords that you had not previously considered, but that still have the potential to trigger your ad. With a modifier like the plus sign in your broad match keywords, your ad traffic’s relevancy increases as they generate highly targeted traffic.
It is best to use this match type to increase your impression count and decrease the irrelevance the broad match generally gives.
Phrase matches are keyword match types that eliminate the unnecessary and risky traffic that the other match types produce. With the phrase match keywords type usage, when someone searches for your keyword phrase, your ad is displayed in the search results in proper order.
Unlike broad match or modified broad match keywords, phrase match keywords does not have search terms with the middle words of your phrase. Phrase match is also a better option when your keyword’s meaning changes with the order of terms. It ensures that your keyword is displayed in the order that you choose.
Phrase match type has better flexibility than an exact match keywords which makes it so important, and it also lets Google show more discretion than the broad match types. Furthermore, since you don’t have to follow exact match, you can enjoy the phrase match’s wide audience. However, you can expect irrelevant traffic here as well.
Phrase match keywords is essential to maintain the word order and ensures that you reach the correct searchers. As a result, a specific keyword of your choice has increased traffic, and your ad budget is better focused on more relevant traffic.
There will be a difference between the traffic volume that broad match and phrase match bring to your site. However, phrase match keywords does get higher-quality traffic with more conversions using a more niche-targeted ad, which makes up for the lesser traffic.
The most restrictive PPC keyword match type is the exact match keyword type since it restricts the display times of your ad. So while this type gives you the most relevance, it provides the lowest reach to your ad.
It would be best to use the exact match keywords type when you want to serve your ad for a particular keyword. With an exact match keywords, you can choose to show your ad to only those customers who search for that same keyword or one that is closely related to it.
These closely related terms include misspellings, accents, abbreviations, stemming, singular and plural forms, recorded with the same meanings, conjunctions, and prepositions. Again, you can create an exact match keyword type with brackets around a specific keyword.
Such match types lower your ad’s traffic and generate fewer clicks or impressions than other match types. However, exact match keywords generates highly targeted traffic with the maximum conversion chances because users search for the exact term you have created your keyword around.
Additionally, exact match keywords help increase your Quality Score because of lowering the search term-to-keyword ratio. This match type has ads that create the most click-through rates but at the greatest cost-per-click.
The exact match type can help to decrease your overall costs because you only pay for fewer targeted clicks. However, it is also essential to note that you also risk missing helpful keyword-related traffic with the further inability to get long-tail data.
It is essential to choose the right PPC keyword match type for an effective PPC strategy. There are four match-type keywords that you can select for your campaign, depending on which one fits your needs closely.
Since the match type decides the extent to which a search query matches your keyword in the Google Ads account, you have several options to choose from. These include Broad, Broad Modifier, Phrase, and Exact match types, where each of these has its pros and cons, making them optimal for various types of campaign goals.
In any case, keyword match types play an essential role in online marketing, and marketers and advertisers must use them for effective marketing campaigns.
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If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
