Keywords and Match Types in Microsoft Advertising
On search, everything starts with what people type into the search bar. Keywords and match types decide when your ad appears and for which searches. Chosen well, they catch exactly the right intent at a low cost; chosen badly, they waste your budget on searches that have nothing to do with what you sell.
What are keywords in Microsoft Advertising?
Keywords are the terms you choose to tell the platform which searches you want your ad to appear for. When someone searches on Bing, the system compares the search with the keywords in your account and, if there is a match, you enter the auction to be shown.
The key point is that you don't directly decide which searches you appear for. You signal intent through keywords and control how strictly the real search must match your term through the match type.
That is why choosing keywords and match types is the foundation of any well-run search campaign. A good term on the wrong match type can waste budget, just as a weak term on the right match type rarely saves a campaign.
What are the match types?
Microsoft Advertising offers several match types, which control how closely a real search must match your keyword for your ad to show:
- Exact match. Your ad appears only for searches very close to your term - maximum control, highly relevant traffic.
- Phrase match. Your ad appears for searches that include the meaning of your term, with extra context - a balance between control and reach.
- Broad match. Your ad appears for a wide range of searches related to the term - the widest reach, but also the highest risk of irrelevance.
Each type has a role. There is no absolute “best”; there is the right combination for your goal and for how tightly you want to control your traffic.
How does exact match work?
Exact match gives you the most control. Your ad appears only for searches very close to your keyword, including close variations in meaning. The result is highly relevant traffic, with a low risk of paying for the wrong searches.
The downside is limited reach: you only catch searches closely tied to the term, so volume is lower. Exact match is ideal for your most important and profitable terms, where you want precision and are willing to give up a little volume for relevance.
How does phrase match work?
Phrase match sits in the middle. Your ad appears for searches that contain the meaning of your keyword, often with extra words before or after it. This way you catch real search variations without opening up completely to everything.
It is a good choice for a balance between control and reach. You get more traffic than with exact match, but keep reasonable relevance. Combined with a good list of negative keywords, phrase match covers many situations without much waste.
How does broad match work?
Broad match gives you the widest reach. Your ad can appear for a wide range of searches related to your term, including synonyms and related topics. It is useful for discovering new searches you wouldn't have thought of and for feeding automated bidding strategies with signals.
The risk is obvious: without control, it can catch irrelevant searches and waste budget. That is why broad match is never used on its own, but always alongside a solid list of negative keywords and close monitoring of the search terms report, so you can cut what is unrelated.
How do you choose the right type?
The choice depends on how much control you want and how much you are willing to invest in monitoring. A balanced approach uses exact match for important, profitable terms, phrase match for controlled reach and broad match, with care, for discovery.
Whatever the type, the search terms report is your main tool. By checking it constantly, you see which real searches your ad showed for, add good terms as new keywords and bad terms as negatives. This way your account keeps refining itself, whichever match types you use.
How do you optimize keywords for profit?
Not all keywords are equally valuable. Some bring conversions at a low cost, others burn budget without selling, and some sell a lot, but products with a low margin. That is why judging a keyword only by cost per click or ROAS is misleading - both ignore the margin of the products it brings in.
The right approach is profit optimization - POAS (Profit on Ad Spend). At the keyword level, POAS shows you which terms bring real margin and which only look good. You raise bids on profitable keywords, lower them on weak ones and cut what wastes money. That way, your keyword list becomes a profit engine, not just a traffic engine.