I am understand this correctly. Say I have a keyword typed into adwords like this (just an example): "black women" shouldn't it match, "sexy black women", and "black women dating"? Any feedback would be greatly appreciated.
It would match those keywords provided the searcher didn't actually put the words in quotes like in your example. Phrase match will serve your ad whatever you put in the quotes plus whatever else the searcher types - eg. if this is your keyword "black women" you will be displayed on - sexy black women - black women dating . If a searcher actually puts quotes on the keywords "sexy black women" your ad will not show. If the searcher searched with quotes "black women" your ad will show. If the searcher typed - black sexy women - your ad will not display on that keyword because the words you put in the phrase match have to be typed exactly how you entered them.
Yes, you're correct. If the phrase "black women" is found inside a search query, then your ad will show.
Not quite true... Here's Google's explanation of Phrase Match: Phrase Match - If you enter your keyword in quotation marks, as in "tennis shoes," your ad would be eligible to appear when a user searches on the phrase tennis shoes, in this order, and possibly with other terms before or after the phrase. For example, your ad could appear for the query red tennis shoes but not for shoes for tennis, tennis shoe, or tennis sneakers. Phrase match is more targeted than broad match, but more flexible than exact match. Emphasis on the word 'could'. There's no guarantee, and it's often surprising when it does and when it doesn't appear (to me, at least). It may be something to do with Quality Score, but I don't know for certain...