Google AdWords Help Center: How do I use keyword insertion? (tutorial)

Have you ever heard someone mention the term Dynamic Keyword Insertion (DKI)? Well Google has finally decided to spread some light on the subject. They have a full tutorial available and if you are not familiar with the practice I advise you to take a close look at it.

In brief it will allow you to dynamically insert the search term into your ad.

So if your ad says:

Cheap MP3 Players
Browse our large
selection of MP3 players.
cheapmp3.com

You can use DKI to do this:

{keyword:Cheap} MP3 Players
Browse our large
selection of MP3 players
cheapmp3.com

and if the search term that was used was Low Cost MP3 Players
your ad would replace Cheap with Low Cost dynamically when the page loads so it would look like this:

Low Cost MP3 Players
Browse our large
selection of MP3 players
cheapmp3.com

If the search term they use cannot fit into allowed number of spaces for the headline then your default term (whatever is after the colon:) will show in the headline.

Cheap MP3 Players
Browse our large
selection of MP3 players
cheapmp3.com

There are a number of variations that can be used because DKI can be utilized in the whole ad and not just in the headline.

To very important notes. Be careful because you do not want funny looking ads showing. Secondly while this technique will definitely improve your CTR ratio it will actually lower your conversion ratio.

The reason for this is because your headline is matched so well to what the person is searching for you get more browsers than buyers.