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Traditional Keywords For PPC v. Keywordless Campaigns

16 min read 📖

The way that we search on Google is evolving rapidly, causing a shift in paid search keyword strategies and how keywords for PPC behave.

A few years ago, we would have to be clear and specific when entering our search queries; meaning our keyword strategies would be equally as targeted. Now, alongside the implementation of AI, we can find exactly what we’re looking for with as little as two words.

So what does this mean for advertisers on Google?

The foundation of Google Ads was built on high-intent keyword targeting. You would collate a list of hand-picked keywords and plug these into a tailored search campaign. Then, you could get in front of your ideal customers who were typing in queries that matched your keywords.

Now, the focus has shifted from the specific keyword targeting, to targeting levels of intent. This doesn’t mean that keyword targeting is obsolete, in fact, Search Campaigns are still a fundamental part of Google Ads, alongside new keywordless campaigns.

We’ll look into the evolution of keyword targeting, alongside the role of AI in Google Ads search campaigns. Comparatively, we’ll look into the new keywordless campaigns, Performance Max and Search Max and how they’re shifting targeting strategies for marketers.

As a Google Premier Partner Agency, we’ll share our expertise on how these campaigns behave, why negative keyword lists are more important than ever, and what the future of Google Ads looks like for keyword targeting.

How Keyword Targeting Works

In Google Ads, Search Campaigns allow advertisers to show their ads for relevant queries that people are typing into the Google search bar. Advertisers use keywords relevant to their product or service to let Google know what queries they want to appear for. Then, when someone types in a matching search query, their ad can appear in the search results.

Before the rise of automated bidding strategies, advertisers would use Manual Cost Per Click (CPC) strategies. This strategy meant advertisers applied the maximum amount they would pay per click for that particular keyword. As Google Ads campaigns work in an auction style for the ad spaces, the maximum CPC is the highest bid advertisers are willing to pay for the ad space.

Note: the bid is not the only factor that Google considers in the ad space auctions. It also considers: ad relevance, landing page experience and ad strength, amongst other factors.

Keyword targeting can also be used in other campaigns, but its primary use is for search campaigns.

Understanding Keyword Match Types

There are 3 keyword match types that advertisers can use:

  • Exact
  • Phrase
  • Broad

These match types allowed advertisers to choose how targeted they wanted to be with the search queries. Although these keyword match types have also evolved, let’s look at how they traditionally behaved.

Exact Match is the most targeted type of match type, where advertisers could target highly specific queries. These keyword types are identified by using square brackets.

For example, if a retailer who sells platform heels only wants to show for those search queries, they might use the keywords [Platform Heels] or [Heels with Platforms].

Phrase Match is slightly broader than exact match, allowing for extra words to be included in the search query, but still remaining highly relevant. These keyword types are identified by using quote marks.

For example, if our platform heel retailer wants to expand their reach but make sure they’re still only showing for platform heel queries, they might keep the same keywords as above, but put them quote marks. This would mean they might show for search queries like “Pink Platform Heels” or “Buy Platform Heels on Sale.”

Broad Match is, as you might expect, the most broad keyword type. They allow the ads to trigger for a wider range of search queries that are related to the keyword that’s been inputted.

For example, if our platform heel retailer wants to show for queries related to platform heels, the broad match keywords might show for queries such as most comfortable designer heels, party heels or festival footwear.

We’ve put together a handy infographic below which shows you how these keyword match types traditionally behaved.

Traditionally, exact and phrase match keywords were the preferred types, as they allowed advertisers to:

  • Retain more control over the quality of the searchers that would see their ad
  • Avoid budget being wasted on terms that are loosely related to your keywords, but not highly relevant
  • Choose exactly the types of search queries that they want to appear for

Before the implementation of AI and intent signals, broad match keywords had a reputation for showing ads to search queries that were irrelevant, low quality and cheap. This made broad match the least popular match type amongst advertisers.

We’ll dive into this in more detail later on in this blog. But first, let’s revisit the early stages of keyword strategies, and the role of the SKAG.

What Is SKAG?

SKAG stands for Single Keyword Ad Groups. This strategy is used within search campaigns to create highly targeted ads that are tailored to a single keyword.

To build a SKAG within a search campaign, advertisers create an ad group and then input a single keyword into that ad group (or include the exact and phrase match variation of the same keyword). This allowed advertisers to create highly tailored and relevant ads which led to high quality scores.

The high quality scores, as we mentioned earlier, can help ads to be seen in more prominent positions in the ad space.

SKAG is a keyword-dependent strategy within Google Ads. Therefore, is SKAG still relevant for advertisers with keywordless strategies evolving?

Is SKAG Still Relevant?

SKAG (Single Keyword Ad Groups) was a popular keyword strategy before AI, automated bidding strategies and intent-targeting. The strategy was simple, you would add a single keyword (at the most, the exact and phrase match variation) into an ad group.

This had multiple advantages at the time, including:

    • Having highly tailored ad copy to the keyword
    • Building a high quality score, which led to higher ad ranks
    • Access to highly segmented data

SKAG was an effective strategy when users were still writing specific and thoughtful search queries. These queries were also short, to the point and intentional. As the way we search on Google has rapidly evolved, it has led to this method being obsolete.

Let’s look at how people are searching has impacted advertiser and marketer’s keyword strategies.

The Introduction Of Long Tail Keywords

Think about when you turn to Google to answer a query.

Do you boil it down to 1-2 words, or do you write it as the thought popped into your head? Over recent years, longer search queries have become the norm across Google search.

Previously, in the days when SKAG was a primary strategy, long tail keywords were seen as too broad, low quality and low intent. Now, due to the evolution of search queries, it’s no longer about the length of the search query, but the intent level of the query.

This means keyword strategies no longer boil down to specific words or phrases, which rendered SKAG obsolete and paved the way for marketers testing more long tail and broad match keywords.

How Long Tail and Broad Match Keywords Work Together

As searchers write longer tail queries, it means users can be looking for the same thing and have the same intent levels, but type slightly different queries.

The longer the query, the more room there is for variations.

If we look at our retailer who sells platform heels, a person who is searching for “comfortable platform heels for a party” has similar intent levels to someone searching for “footwear for a summer festival.” Even though the words they’ve used a different, these searchers are both looking for comfortable and stylish footwear for an event.

Therefore, our retailer can show for both queries due to their relevance, even if the queries don’t contain the same words.

This means for keyword targeting, if we use exact and phrase match keywords, you could miss out on high intent search queries because these types might not take into consideration all of the different variations. That’s where broad match keywords come in.

Now, if we look back to how broad match keywords originally behaved, you can understand advertisers hesitating to use them. They lacked the relevant data to understand if queries loosely related to the original keyword was relevant or high intent.

Recently, Google has injected broad match keywords with AI signals and more data points so that it can understand intent levels and relevance more effectively. Coupled with the rise of long tail search queries, advertisers can start to show for more relevant queries, without the laborious process of adding multiple variations as exact and phrase.

Google has integrated AI solutions across the ad platform, not just in broad match keywords. Let’s take a look at how AI integrations have played a role in rapidly evolving Google Ads for advertisers and marketers.

The Impact Of AI With Automated Bidding Strategies

Before the introduction of AI and automated bidding strategies, marketers and advertisers would use manual bidding strategies and exact/phrase keywords to targeting their idea customer.

Now, as people can search for the same thing in different ways, manual strategies struggle to understand which terms are high intent, and which terms to avoid bidding for. This can cause advertisers to leave a lot of money on the table.

Google created a solution, automated bidding strategies. Instead of setting bids, advertisers would set a Campaign Goal. This could include:

  • Maximise Conversions
  • Maximise Conversion Value
  • Target CPA
  • Target ROAS

Then, with the campaign goal and data, the algorithm will monitor auctions and bid for search queries that align the goal. The algorithm will also avoid bidding in auctions that don’t align with the goals.

These bidding strategies also go beyond the actual search query. They monitor multiple search signals and behaviours to identify patterns in user search behaviour that show they’re worth bidding for. This is something achievable with manual bidding strategies that rely solely on the max CPC. bid advertisers input.

For example, if you set a campaign goal of a Target ROAS of 300% the algorithm will use your data and Google’s signals to find conversions that drive that target. If the data and algorithm shows that certain queries they come across won’t provide a ROAS within that target, it won’t bid in those auctions. This also means it might bid more aggressively for higher-intent search queries, as it conserves the budget from not bidding in other auctions.

Embracing The Evolving Bidding Strategies

At first, advertisers avoided automated bidding strategies, feeling as though losing control of their Max CPC. bids would see costs skyrocket. Coupled with Google’s recommendation of using broad match keywords with these strategies, marketers were fearful that aggressive bids and targeting broad queries would burn through budgets without any real results.

However, we’ve witnessed automated bidding strategies evolve from sporadic targeting, to learning from the data to understand which queries will help advertisers reach their goals. This was due to integrating AI into the algorithms. Now, the bidding strategies can merge our goals, data and AI together to bid for the queries that align with the advertiser’s targets.

As we move into an era of long tail keywords, having this type of automation and AI helps marketers to show for the wide variety of search queries that are relevant to what they’re advertising. It can also be useful to unearth new keywords that show high levels of intent. We’ll delve into this deeper in the next section when we look at new keywordless campaigns.

What Are Keywordless Campaigns and How Do They Work?

Keywordless campaigns, like Performance Max, use Google’s AI, automated bidding, and data signals to target users across Search, Shopping, Display and YouTube, without inputting keywords. Instead of advertisers inputting keywords they want to target, they’ll use various data points to signal to Google who their ideal user is.

This has shifted Google’s targeting methods to focus less on keyword targeting, and more on intent targeting.

For marketers, this makes sense, even if it is a little daunting. We’ll always have a small group of keywords that are highly targeted, relevant and drive high-intent traffic. But with the evolution of long tail keywords and ai overviews, there’s a pool of high-intent searchers out there that traditional keyword targeting isn’t reaching.

There is also more to a user’s intent than the search query they type into Google.

  • What have they typed in previously to get to this query?
  • What websites have they visited?
  • What are they watching on YouTube?
  • What is their demographic?

Keywordless campaigns look beyond the keyword to understand other touchpoints that make some search queries high-intent and worth bidding for.

Let’s look at keywordless campaigns in more detail.

How Performance Max Campaigns Work

Launched in 2021, Performance Max is a goal-based campaign type that allows advertisers to show ads across Search, Shopping, Display, YouTube, Gmail and Maps, within a single campaign.

Instead of inputting keywords for targeting, Performance Max uses ‘Audience Signals.’ Advertisers build their Audience Signal using a variety of data points including:

  • First Party Data
  • Google’s audience segments
  • Websites users have visited
  • Demographics

Performance Max fuses the Audience Signal, bidding strategy and AI to determine who to target and when. Similar to when automated bidding strategies were introduced, you’re setting the goal, rather than the keyword bid; focusing on the intent of the user, not what they are specifically typing into Google.

Audience signals allow advertisers to look beyond the keywords and craft their ideal customer to give to Google as a targeting strategy. The more layers of data provided, the sharper the picture Google can use to understand who they should target to reach its goal.

Google recommends using Performance Max alongside Search Campaigns – nicknamed the ‘Power Pair.’ This is because Performance Max campaigns look at your full account data, including your keyword data, to understand where your ideal customers are and what they’re searching for. It’s designed to plug the gaps of intent that keywords are missing and advertise across more channels for maximum visibility.

One key drawback of Performance Max campaigns is the lack of granular data you can access to understand what is working and what isn’t. This has left marketers seeing fruitful results with their campaigns, but not able to understand what specifically is driving them. However, Performance Max has evolved rapidly since its launch, giving marketers access to more insights to understand what channels and assets are driving results.

In our own experience, we had a period of trial and error with Performance Max campaigns. We rigorously tested it across multiple accounts in our portfolio, ranging from small startups, to established ecommerce brands. Even though we struggled with the lack of data visibility, we were able to establish patterns and formulas that give Performance Max campaigns a strong foundation, regardless of your goal.

You can download our Free Best Practices For Performance Max resource below to help you with your own keywordless campaigns.

Performance Max Best Practices

Download our free Performance Max Best Practices resource

  • 🎯

    Target high intent searchers

  • 🤝

    Understand the elements you need

  • 🧪

    Build effective A/B tests

Introducing AI Max for Search

In 2025, Google announced a new AI feature called AI Max for Search. This innovative feature integrates into Search campaigns and uses AI to help advertisers:

  • Expand their reach
  • Discover new customers
  • Show for new, relevant search queries

Although this feature exists within Search campaigns, it uses keywordless technology to help optimise search campaigns further.

Let’s dive deeper into how AI Max for Search works.

How AI Max for Search Works

There are two main features to AI Max for Search: search term matching and asset optimisation.

Search term matching looks at your current keywords in the campaign and uses Google’s AI to find relevant search queries that your keywords would have missed. According to Google, this feature continues to learn from the keywords, creatives, and URL’s to show your ad to relevant and high-performing queries that your current keywords won’t have targeted.

Essentially, AI Max for Search plugs the gap between your current keyword selection and lost results due to targeting.

For advertisers that are worried about AI Max for Search in terms of transparency and strategy control, this feature also comes with reporting and new controls to help make data-driven decisions, rather than relying on the mysterious algorithm.

Asset optimisation (formerly known as automatically created assets) automatically customises your ad copy and chooses the Final URL based on the user’s search query. According to Google, this allows advertisers to show the most relevant ad copy and landing page for that particular user. To use asset optimisation, advertisers need to opt into Final URL expansion.

Overall, AI Max for Search looks beyond the keywords in a campaign to find relevant, intent-driven search queries that advertisers would have missed out on with traditional keyword methods.

The Difference Between Keyword and Keywordless Targeting

Aside from the obvious feature that keyword targeting uses keywords and keywordless doesn’t, there are other major differences to consider.

Keyword targeting relies heavily on the keywords provided and the bidding strategy applied to measure the intent of the search query. If the query doesn’t match any of the keywords included in the campaign, the ad won’t serve. Therefore, keyword targeting relies on advertisers to have selected all of the possible keywords that are relevant, intent-driven and align with their goals.

Comparatively, keywordless targeting considers several factors beyond keywords to measure the intent of the query. If we look at our Performance Max campaigns, as well as the bidding strategy, the algorithm also looks at:

  • First Party data
  • Trend data
  • Intent signals
  • Google’s data

Keywordless targeting indicates that intent can’t be measured by the specific words that we choose to type into Google anymore. Instead, intent is measured by our behaviours, patterns and timings to determine if a search query is worth bidding for.

Therefore, is keywordless targeting able to capture more of the high intent searches than traditional keyword-driven campaigns?

Traditional Keywords For PPC v. Keywordless Campaigns

There is no clear answer as to whether keywordless campaigns are a “better” solution than traditional keyword-driven campaigns. In fact, we might see a future where both strategies work together to help advertisers get in front of the right people, at the right place, at the right time.

For example, advertisers can use keyword-driven campaigns to target their high-intent searchers they know drives performance. Then, they can use keywordless campaigns to plug the gap that advertisers might be missing with traditional keywords.

If you’re curious to know about keyword v. keywordless strategies for your Google Ads campaigns, book in a call with our expert team today.

Anna Stewart

Digital Marketing Strategist

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