You’re searching for something oddly specific on Google – let’s say, where to find the best tasting pistachio-flavored ice cream in your area. You highly doubt your search will lead you to the exact object of your desire, but it can and it will. Somehow, you discovered an ice cream store nearby that sells your next favorite pistachio ice cream, all because of an ad that seemed strangely targeted just for you, just at the right time.

How did that happen? Dynamic Keyword Insertion. Suddenly, it doesn’t seem so strange at all!

So what is DKI and what makes it so special? It’s actually very interesting – DKI allows advertisers to run an ad that swaps out a default text based on the user’s specific search query.

Let’s go back to the pistachio ice cream example. The user might be convinced that the advertiser ran an ad specifically for pistachio ice cream lovers. But in reality, the advertiser simply ran one dynamic ad for ice cream, that bid on multiple keywords – vanilla ice cream, chocolate ice cream, strawberry ice cream, and yes, pistachio ice cream. Had the user searched for any of the other ice cream flavors listed above, that’s what would have been blasted in the headline instead of pistachio ice cream.

It’s a bit of a fill-in-the-blank scenario for advertisers, and it can work to their utmost advantage if implemented strategically.

So why is DKI so useful in a PPC campaign? It definitely has its benefits and drawbacks, and I’m going to lay them out for you. Let’s get started.

The Pros of Dynamic Keyword Insertion

• It can save you a ton of time.

If you handle an e-commerce business, then DKI can be your new best friend. Imagine how draining it must be to sell hundreds of SKUs and being forced to run ad groups for each and every one of them.

Taxing? Terribly. Necessary? Thankfully, not anymore.

For example, you might run an online accessory store. You sell accessories made out of bronze, silver, gold, ivory, wood—you name it. Instead of having to run a separate ad group for each, you can rely on DKI to do it for you.

• It leads to highly relevant, hyper-targeted results.

Everyone loves the feeling of having something custom made for them. There’s no difference when it comes to digital marketing. Users are immediately drawn to headlines that match exactly what they’re searching for. So when they see that perfect match (care of DKI), chances are they’re going to click it. More ad clicks with minimal effort on your part? It’s a win-win situation.

• It can get you a higher Quality Score.

Because you have these extremely personalized and super specific results, Google should grant you a higher quality score. If you play your cards right, DKI can nab you a higher ad position at a lower cost.

• It has the potential to exceed Google’s headline character limit.

You have that perfectly worded headline. It’s catchy, captivating, and clever. You’re so excited to run the ad, but oh no – you’ve typed one character too many. What now?

However, as you wildly go through a couple of ads on Google, you start to notice a major injustice – some ads exceed the character count! How is this possible? These ads are probably using DKI.

It isn’t a guarantee, but it seems that Google is more lenient with DKI ads when it comes to character limits. So, if you’re the type of advertiser that always seems to miss the cut by just one or two characters, then perhaps DKI will be more forgiving.

But of course, all great things have their downsides. And unfortunately, DKI is one of them. Your DKI ads can turn out looking unprofessional, nonsensical, and downright cringe-worthy if you don’t plan them out properly. Here are a couple boo-boos you can make when DKI isn’t carried out tactically.

The Cons of Dynamic Keyword Insertion

• You’re more prone to committing capitalization and grammatical errors.

Since you’re using a one-size-fits-all formula here, it’s imperative that you make sure that one size really fits all. Before running your DKI ad, make sure that all the keywords fit in smoothly with the default text. It has to make sense. Otherwise, your ad will end up looking carelessly made, driving away potential customers.

• You can fall prey to trademark issues.

The last thing you want happening to you is investing on a DKI ad only to find that it was pulled out due to trademark violations. If you’re bidding on your competitor’s keywords, then DKI is probably not the best fit for you. I repeat, you may end up bombing your DKI ad if you entangle it with competing brands. If you’re insistent on bidding on competing brands, then we suggest creating an entirely different ad group to avoid any illegalities.

• You’re discouraged from using broad match keywords—it defeats the purpose of using DKI.

The beauty of DKI is that it makes the user feel that the ad was perfectly tailored to fit his needs. If you’re planning on using broad match keywords, then there’s little chance of reaping the benefits of DKI.

Broad match modifiers can be an advantageous digital strategy because it gives the advertiser access to a larger audience. It allows misspellings and synonyms to trigger your ad. For instance, a user might search pistacio instead of pistachio – that’s okay, broad match can still pick it up and prompt your ad to appear.

It’s a nifty keyword match type, but it most likely won’t mix well with DKI. If you combine the two keyword options, you run the risk of releasing poorly constructed, illogical ads.

• Your long-tail keywords probably won’t fit.

Long-tail keywords can be very successful because they appeal to people who are looking for something highly specific. But if you bid on long-tail keywords in combination with DKI, then it’s likely that it won’t fit the character limit. This will just cue Google Ads to display your substitute text. This isn’t a catastrophe, but it might make you wonder why you’re using DKI in the first place.

The Conclusion: Weigh Your Options

Like most things in life, there’s no clear-cut right or wrong answer. The call to use DKI is highly contextualized, so it’s your job as the advertiser to know your product like the back of your hand. It never hurts to test the waters – in fact, it’s your job to do this. Keep testing your ads repeatedly.

If you’re not sure about DKI, then try running multiple ad groups - one with DKI and one without.

It’s wise to monitor your DKI ad’s performance compared to a standard ad’s. Once you’ve got a clear picture of what’s working for or against you, you can choose whatever ad feature suits you best. Best of luck getting those clicks!

If you need an agency to manage your Google Ads campaigns, contact Professional Google Ads Management Agency today!