The keyword matching options provided by Google AdWords is a very powerful tool to help reduce the cost of your Google AdWords campaign. This can be accomplished in two ways. Firstly Google Adwords rewords you for a keyword with a high CTR by reducing its minimum CPC bid. Secondly all your irrelevant impressions and clicks will decrease, thus reducing your cost and increasing your ROI.
Broad match is the default setting in your Google AdWords campaign. It’s good practice too make your broad matches at least two keywords long on the one hand and no more than four keywords on the other. Single keyword broad matches usually generate lots of impressions and will decrease your CTR significantly. You can use single keyword terms when your ad is confined to a certain region. The broad matches with four or more keywords will generate very few impressions and won’t be of that much use. The combination of the broad match option and negative keywords option have also been proven to be a excellent method in reducing campaign cost and reaching a more qualified audience.
Matching options can also be used to activate inactive keywords again without increasing their minimum CPC bid. This can be done by deleting the inactive keyword phrase and then reusing it as an exact match. With this option you will still be able to use the inactive keyword phrase to attract potential customers at a reduced minimum CPC bid. In summary, matching options gives you more control over your audience and help you to reduce cost and reach more qualified users.