After developing your keyword list, you then need to think about what “match type” you will set your terms to. To define, Google has four different matching options that determine which Google searches trigger your ads to appear. These matches allow you to control who sees your ads. The graphic below depicts the match types and relative search coverage:

Exact Match: Exact Match is the most precise match type and will most likely yield the least volume, however will most likely drive some of the highest quality traffic. When you have a term exact matched, as in [used trek bikes], this query will display your ad only when the exact phrase is searched. Use brackets [] around the keyword (s) within Adwords to create an Exact Match.
Phrase Match: When you have a term phrase matched, for example “used trek bikes,” this will display your ad to show for searches that match the exact phrase, in that order. Not only will your ad appear when users search “used trek bikes,” but it will also appear when users search “used trek bikes for sale,” and “kids used trek bikes.” Use “ “ around the keyword (s) within Adwords to create a Phrase Match.
Broad Match: Unlike Exact and Phrase Match, Broad Match is setup with no punctuation. Your ads will display when your term is anywhere in the search query. Example keyword (trek bikes) a Broad Match ad would serve for the following search query: “trek bikes suck”
Negative Match: Negative Keywords are seen as: -negative. When Negative Matching a term, your ad will not show for any search that includes that term. As in the broad match example above, you would probably not want people search for “trek bikes suck” visiting your online bike shop and will therefore – negative match for “suck.”
When having your campaign set to Broad Match, this will most likely drive a significant amount of traffic, and quite possibly a good amount of irrelevant traffic. The ultimate goal is to find those terms that drive users to your site and exact or phrase match those keywords. This way, you have good control on who can see your ads as well as having a solid handle on spending your budget effectively and efficiently.
See the example Keyword Match Type Grid Below:





