When advertisers opt for phrase match keywords, ads will only appear when the search term is in the same order as your desired keyword search phrase. For example, if your business is targeting “best seafood in Sydney”, your ads will be displayed only when people search for those keywords in that exact order. Your ads can also appear for other searches, for example, “where is the best seafood in Sydney” etc.
Exact match keywords are the most precise and tend to convert highest of all of the three categories. It excludes all impressions other than the exact match. Using the example above, unless people type in “best seafood in Sydney” and nothing else, your ad will not show up.
Using exact match you will be sacrificing a lot of traffic. They won’t reach as many people as broad match and phrase match, but the advantage is that over time the conversion rate can be higher, and the cost can become more efficient (however this assumes you know what you’re doing!)
An effective Google Ads Campaign needs to be strategic. It needs to track and measure conversions, revenues and profits.