Posts: 10,815
Name: Steven Bradley
Location: Boulder, Colorado
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Exact is pretty much what you're thinking. If your phrase is:
blue widgets
and you use exact match then your ad would only show when someone searches for blue widgets. Your ad wouldn't show for widgets blue or even buy blue widgets
Broad matching is the opposite end of the spectrum. If your keyword is again blue widgets then a broad match would show your ad for:
buy blue widgets
free blue widgets
blue widgets are the best widgets of all the different widgets there are
widgets are blue
red widgets
widgets
blue
As long as one of the words blue or widgets is part of the query you're ad will show. Naturally it will show a lot more often, but it'll also show for queries you probably don't want your ad showing on. You generally want to use negative keywords to eliminate your ad showing up for some words when you're using broad matching.
There's another match option in between the two called phrase matching. Again with blue widgets as the keyword phrase your ad would show up for
blue widgets
buy blue widgets
blue widgets are wonderful
but not:
widgets
widgets blue
red widgets.
The phrase you're bidding on would have to be part of the query.
You can read about keyword matching options at Google
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