Adwords keywords match option allows you to set up different bids for different matches. In my previous post I had talked about how to eliminate and retain match types. now I will talk about how you can set bids to gain maximum from it. If you analyse the same keyword with different match types, you will find (and one willing to research will see it) Google attributes statistical impressions to most restrictive category of the three match type against each serach impression.There are several categories where you may find you are getting good conversion through broad matches though you don't know what keyword was actually used that triggered that conversion. Infact few people knows Google's Broad matches are actually extended matches (PLz don't confuse yourself with plurals and singulars, infact the case may be they are not appearing with plurals but appearing w/ a large no of keywords you never imagined!) which google identifies as equivalents of your chosen keywords, through search behaviour analysis of users who had been searching w/ those equivalents. So, you will find
1) there are chances of conversion w/ broad matches
2)You are not able to figure out exact key word search for the broad/phrase
3)And its a good news, Your competitors don't have the clue either
4)And thats why bids are lower w/ those keywords
And because of the above four you can really benefit by setting different bids for different types. Also, you will notice the gap is far too great than what you imagined at first.
This underlines the importance of adding all match types in a single adgroup w/ common keywords. so you can set 1/5th the bid for phrase and 1/10th for broad, and track the conversion. Enjoy the benefit of low Avg CPC and increased CTR that improves your QS too.