Hi there,
Thanks for reaching out. Happy to give you some initial thoughts and guidance on your question about running exact match and phrase match keywords in the same ad group using Max Conversion bidding in Google Ads.
It's More About Optimisation Than Cannibalisation...
Okay, so regarding your query about whether running both exact match and phrase match keywords together under the same ad group for your Google campaign, especially when using a Max Conversion bid strategy, constitutes "cannibalisation"... It's a really common question, and honestly, it's not quite cannibalisation in the way people usually mean it.
Cannibalisation often implies that one element is negatively impacting another, essentially competing and making both perform worse than if they were separate. In this specific scenario, particularly with an automated bid strategy like Max Conversion, what happens is a bit different. Google's system isn't really letting your keywords 'fight' in a harmful way.
Think of it this way: when someone performs a search query, Google looks at all the eligible keywords you have across your account, including different match types in the same or different ad groups. Its goal, with Max Conversion, is to figure out which keyword is most likely to lead to a conversion for *that specific search query* at that specific moment, based on all the data it has about the user, the historical performance of your keywords, your ad copy, the landing page, etc.
So, if a search query matches both an exact match keyword and a phrase match keyword you have in the same ad group, Google's auction system will decide which of those two keywords is predicted to perform best and is most likely to get you a conversion. It uses that winning keyword for the auction. It’s not damaging one to favour the other; it's choosing the one it predicts is the most effective path to your goal (a conversion).
It's essentially the algorithm performing real-time optimisation based on its predictions. Running both gives Google's system more options to find relevant searches that you want to bid on, allowing the exact match to catch very specific, high-intent queries and the phrase match to pick up variations and slightly broader, but still relevant, searches.
How Max Conversion Handles It
With Max Conversion, Google is heavily leaning on machine learning to forecast conversion rates for different users and search queries. The match type is just one signal among many that the algorithm uses to make its prediction. It's much less about keyword hierarchy (like it might have been years ago) and much more about the predicted probability of a conversion.
So, having both exact and phrase match keywords provides the algorithm with a wider net to cast while still giving it the option to prioritise the most specific match (exact) when it deems it most likely to convert for a particular query. It's quite a standard and often recommended strategy because it helps ensure you're covering your core high-intent terms precisely while also capturing valuable variations you might not have thought of with phrase match.
Beyond Match Types: Other Factors That Impact Performance
While it's good to understand how match types and bidding work together, the performance of your campaigns on Max Conversion isn't solely down to this keyword structure. There are several other, often more significant, factors at play.
For instance, I've seen campaigns, particularly for things like B2B software or certain services, struggle not because of keyword setup, but because the offer or the website wasn't set up to convert traffic effectively. I remember one client with a B2B SaaS product; they were running ads, getting clicks, but conversions were really low. Looking at their site, they didn't offer a free trial, which is pretty standard in that market. They had a demo, but that's a bigger commitment. Their competitors were offering months-long trials. It’s a huge decision for businesses to switch accounting systems, for example, and they need to try before they buy. Fixing the offer and making the landing page much more persuasive made a massive difference.
Similarly, for eCommerce, you can get traffic, but if your product photos are poor, descriptions are missing, or the site looks untrustworthy, people just won't buy. I looked at one handcrafted jewelry store recently; great products, but the site was cluttered, slow, photos weren't professional, and no product descriptions. And crucially, nothing to build trust - no reviews, social links, address, etc. You can drive all the right traffic in the world, but if teh landing page isn't right, you won't get conversions.
So, while your keyword strategy is important, especially pairing exact and phrase for good coverage, with Max Conversion you *must* also focus heavily on:
- The quality and relevance of your ad creative (copy, headlines, images, videos). This determines your CTR and initially qualifies the traffic.
- The targeting beyond keywords (audiences, demographics, etc., depending on the campaign type). Are you reaching the right people in the first place?
- Your landing page experience and offer. Is it persuasive? Is the call to action clear? Is it easy to convert? This is often the biggest lever you have for improving conversion rates and lowering CPA/increasing ROAS.
- Your conversion tracking. Is it set up correctly and tracking the right actions? Max Conversion relies entirely on accurate conversion data.
- Giving the campaign enough data and time. Max Conversion needs data to learn and optimise. Making big changes too often or not letting it run long enough can hinder performance.
Ultimately, using Max Conversion with both exact and phrase match is generally a solid approach for comprehensive coverage while letting Google's AI figure out the best path to conversion for each specific search query. The focus should then shift to ensuring your offer, landing page, and ad creatives are as optimised as possible, as these often have a much larger impact on your final cost per conversion or return.
Recommended Actionable Solution
| Area | Recommended Action / Solution | Rationale |
|---|---|---|
| Keyword Structure (Exact/Phrase) | Continue running both exact and phrase match keywords in the same ad group (or relevant ad groups). | With Max Conversion, Google optimises towards the highest conversion probability, using match types as a signal. This structure provides good coverage of search queries without harmful cannibalisation. |
| Bid Strategy | Continue using Max Conversion if your primary goal is indeed maximising conversions within your budget. | This strategy aligns with the goal of finding the most efficient path to conversion for each search query, leveraging Google's machine learning. |
| Beyond Keywords | Focus optimization efforts heavily on ad creative testing, targeting refinement, and critically, improving your landing page/offer conversion rates. | These factors often have a larger impact on Max Conversion performance than small tweaks to keyword match type structure, especially once you have good coverage. Low conversion rates on site will kill performance regardless of how good your keywords are. |
To summarise teh table, running both exact and phrase match with Max Conversion isn't cannibalisation; it's giving Google the options to find conversions. Your focus should be on refining your entire funnel – ads, targeting, and especially your landing page and offer – as these are where the biggest gains are typically made once your keyword foundation is set.
Considering Expert Help
Optimising Google Ads, especially with automated bidding strategies and ensuring all parts of the funnel are working together, can be complex and time-consuming. Getting all the elements right – from keyword strategy and bid settings to persuasive ad copy and a high-converting landing page – requires significant experience and continuous testing.
Often, having an expert eye on your account can quickly identify bottlenecks you might not see, leverage insights from running campaigns across many different niches, and implement advanced testing methodologies. This can lead to faster improvements in performance, better conversion rates, and more efficient use of your ad budget.
If you'd like to discuss your specific account and goals in more detail, we're happy to book in a free consultation. It's a chance to get a deeper dive into your setup and identify potential areas for improvement without any commitment.
Regards,
Team @ Lukas Holschuh
