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The Importance of Keywords in Paid Search

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The keyword is currently experiencing both decline and resurgence. Keywords play an important role in guiding our strategies. Furthermore, they constitute a fundamental element in the functioning of the most prevalent form of digital marketing, which is search. Nevertheless, their mechanisms have unquestionably evolved over time.

Visual content is gaining increasing popularity, and audiences are becoming a significant targeting source.

In this article, we talk about the history of keywords, their current status, and whether they will maintain their relevance or gradually fade into obscurity. It will not pass judgment on the contemporary use of keywords in marketing strategies. Instead, we will explore aspects that people persist in using despite diminishing efficacy.

Importance of Keywords in Paid Search

The Evolution Of Keywords

These are the changes and developments in how keywords are used in digital marketing and search engine optimization over time. This evolution has been influenced by shifts in search engine algorithms, user behaviour, and technological advancements.

The Mechanisms of Keywords Through History

In the past, keywords served a very specific function. Each keyword represented a unique concept that correlated with particular user queries.

For instance, phrases like “best sushi restaurant,” “best sushi restaurant in Chicago,” and “best sushi in Chicago” were treated as distinct concepts. This approach allowed us to target how people think and search.

Historically, keywords acted as our guides in the bidding process whenever a user entered a query. Depending on the bid and quality score, we obtained an ad rank that determined the ad’s placement on the search engine results page (SERP).

In the previous year, match types had a substantial impact on keyword strategy due to their unique characteristics:

  • Broad Match: As long as any part of the core concept matches, the keyword enters the bidding process.
  • Modified Broad (RIP): Each word in the keyword had to be present, but they could be in any order, with terms allowed before and after.
  • Phrase Match: The keyword phrase couldn’t be disrupted, but terms could appear before and after.
  • Exact Match: Only the precise keyword triggered the bidding process.

These various keyword match types would enter the auction in a specific order, with exact match keywords taking precedence and broad match keywords entering last. Consequently, bidding on all match types with distinct bid values held significance.

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This strategy ensured comprehensive coverage while also conveying the advertiser’s preferences for budget allocation.

The Emergence of Close Variants

In 2016, several significant changes took place. Google removed the right-hand side of the search results page and introduced “close variants.”

Initially, close variants were relatively limited in scope, primarily focusing on enhancing user experience. This meant that advertisers were no longer required to bid on abbreviations or misspellings, among other things.

Search term reports provided insights into whether a match type was “Pizza” or a close variant, allowing advertisers to determine which keyword variant delivered the best return on investment (ROI) without the need to encompass every possible keyword version.

Fast forward to 2018-2019, close variants underwent further expansion. Implied words and synonyms became acceptable in all match types, while modified broad match was phased out.

As we entered the 2020s, Broad Match made a resurgence by incorporating audiences, regaining popularity. Simultaneously, phrase and exact match maintained their appeal among advertisers seeking greater control over their campaigns.

Keywords As Audiences

Amidst the evolution of search keywords, audience-based keywords were beginning to find their place in display and video campaigns.

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These keywords served distinct yet equally potent purposes:

  • Topic and Content Targeting: Enabling bidding on placements aligned with the content associated with the chosen keyword.
  • Custom Intent: Targeting individuals who exhibit specific search behaviour or express interest in the selected keywords.
  • Audience Signals: In PMax campaigns, advertisers could construct an audience signal rooted in their desired keywords.

Negative Keywords

Negative keywords hold an important role in comparing to targeting keywords.

Just like regular keywords, negative keywords come in different match types:

  • Broad: As long as the words in the negative keyword are present in any order, the ad won’t participate in the auction.
  • Phrase: The order of words in the negative keyword phrase must be preserved to prevent traffic.
  • Exact: The exact negative keyword, with no additions or removals, prevents the ad from entering the auction.

Negative keywords maintained their distinct purpose and did not adopt close variant properties. Consequently, advertisers had to include all variants as negative keywords if they wished to block specific traffic.

This situation also made it more challenging to justify the retention of match-type driven campaigns and single keyword ad groups (SKAGs) due to the extensive list of negative keywords required to safeguard these structures.

Keywords Today

Keywords hold an important role because they serve as a shared foundation for both SEO and PPC efforts. They offer the opportunity to collaborate in shaping content and bidding strategies.

However, the concealment of search queries within the search term report is causing this common ground to erode. In today’s privacy-centric landscape, determining the most effective keyword concepts relies on educated guesses based on traffic predictions and performance data.

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Furthermore, Performance Max has emerged as an all-encompassing campaign type, relying solely on keywords as an audience signal. Its growing popularity is driven by several factors:

  • Increasing pressure on advertisers to adopt it due to the phasing out of certain features.
  • Proven effectiveness for brands seeking to engage with their customers throughout the entire buying journey.

Do Keywords Remain the Optimal Guide for Targeting Strategies?

While keywords necessitate specific search patterns, they may not always align with the world’s increasing emphasis on privacy.

In an era where safeguarding consumers takes precedence, it might be wiser to concentrate on understanding your audience and enhancing the creative aspects of your campaign. This approach is particularly relevant as the privacy-focused internet imposes stricter controls on data shared with advertisers.

One of the reasons behind concealing search terms in reports is the limited number of people searching in that particular manner. Consequently, advertisers may encounter no difficulty in linking a person’s exact search behaviour to whether they became a customer or not.

As this level of detailed data transitions from a right to a privilege, it’s imperative to become more accustomed to working with cohorts. Nevertheless, proactive protective measures, such as implementing negative keywords and audience exclusions, remain viable options.

The Future Of Keywords

Rather than centring our attention on keywords, we are approaching a future where the spotlight will be on audiences and the development of strategies that cater to customer needs. Two prime examples of this shift are exemplified by shopping campaigns and local service ads.

Shopping campaigns operate by harnessing Google’s algorithm, which crawls your product feed and matches user queries based on factors like product title, description, and category.

Conversely, local service ads operate without any reliance on keywords. Instead, they prioritize factors such as reviews, proximity, and the relevance of a query to a service you’re bidding on.

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These advertising formats consistently deliver an excellent return on investment (ROI) and underscore that actively bidding on keywords is becoming less critical than comprehending the individuals behind the search queries.

Final Thoughts

Keywords have played a central role in digital marketing for an extended period. Although their function is evolving, they continue to hold an important position in campaign strategy. The future of active targeting is shaped by audiences and feed-based campaigns.

Would you like to read more about the importance of keywords in paid search related articles? If so, we invite you to take a look at our other tech topics before you leave!

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