Hello, How does AdWords decide which ads to pull when there are biddings for broad, phrase and exact matches from the same advertiser? Say I bid the same keyword phrase: SEO Company Minnesota in all 3 types of matches and bid for the same amount for each type of match. If someone searches for the exact phrase: seo company minnesota, which ad does Google display - broad, phrase or exact? Slightly difference scenario for the same keyword phrase. Say if I bid $3 for broad match, $2 for phrase and $1 for exact, which matched ad will AdWords display for the search: seo company minnesota? What are the rules of thumb for bidding different types of matches? Should the bidding for exact match the highest or lowest? I know AdWords tries to match the most relevant ads to the keyword phrase searched. If that is true, the exact match should win, even if its bidding price is lower. But AdWords bidding price is also a big factor as to which ads are displayed.
As you have said, Google will always use the most relevant match type, starting from Exact then Phrase and finally Broad. It is best just to set them all at the same price to begin with and then monitor their average positions after 2-3 days. You will generally pay more for the Exact and Phrase match even though they are the most relevant, but these prices will eventually drop as it is more likely these will achieve a higher Quality Score in the end due to good CTR's.