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Matchtype and CPC

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello everyone,


I heard that exact match keywords are cheaper than phrase and broad match keywords. And cheap here does not mean regarding CPO which is quite obvious due to usually higher Conversion Rates on Exact match. Cheap means on Average CPC.


Actually so far I thought that Average CPC is not determined by match type at all because Quality Score is calculated only on exact matches even for broad keywords.


The guy said that although the shown Quality Score number from 1-10 will be the same for Exact match and its other matchtype counterparts, but behind the scenes there is a much more detailed Quality Score being calculated and that one will be higher for exact match as for phrase and broad and so, their Average CPC is also lower in general.


Is that true?


Thanks a lot and best regards


1 Expert replyverified_user

Re: Matchtype and CPC

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆
Hi Matt,

Based on what I know, that's not true. Quality score is the same for a given keyword irrespective of match type. What CAN vary depending on match type is the ad rank, which is calculated using both quality score and your bid. Your ad rank for exact match will be higher or lower depending on whether you're bidding more or less for that match type. Also, the cost of a particular click will vary depending on what the advertiser that appears below you on the SERP is bidding.

Exact match keywords will be cheaper if your competitors don't value exact match as much and bid less for these variations. However, many advertisers value exact match keywords MORE and bid higher for them. So whether or not exact match will be cheaper will depend on the beliefs/strategy of your competition.

Re: Matchtype and CPC

[ Edited ]
Top Contributor
# 3
Top Contributor

Well... One of those myths that we hear from time to time...


The guy whom you spoke with confused and "mixed" 3 different issues.

Let's start with bidding: in the classic bidding strategy, an  advertiser would bid the highest on exact match, lower on phrase and the lowest on broad match. (The logic is clear -  you would bid higher on a keyword that exactly matches the search query, because  the user is looking for the exact product you are offering and you want your ad to rank higher. How much to bid higher - this is a topic beyond the  scope of this thread.)


Now,  when the system calculates QS, the major component is CTR . To calculate the "CTR for QS" the system takes into account only clicks when the search query exactly matched the keyword. (This is not the same as exact mach - and this is what confused the guy whom you talked with: the "overall click CTR" for broad match is not the same as the "QS CTR" the system uses for QS calculation).


I hope,  I was able to "untie" the ravel


Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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