Dynamic Keyword Insertion

The engines have limited Help sections dedicated to Dynamic Keyword Insertion (DKI), so I'm going to quickly sum it up. Google FINALLY added something about it last year, which can be viewed here:

General ads will minimize your overall effectiveness. To increase clicks per dollar spent your ads must be relevant to the searcher's query. You can achieve higher CTR and ad relevancy by including keywords in your ads. Also, when keywords are used in ads they are highlighted in bold type in the results, which can help draw more attention to your ad.

To dynamically insert the keyword you are buying (not what the user types into the search engine) into your ad, you will use the {keyword:default text} variable. Here's the Google chart for various implementations:

Keyword Capitalization	Example	Rule
keyword	google ads	None
Keyword	Google ads	Sentence (first letter of first word)
KeyWord	Google Ads	Initial (first letter of each word)

Some things to note when using:

1) Make sure that when you add the default text after keyword: that you include the keyword here as well. If the keyword being dynamically inserted exceeds the search engine's allowable max character limit, then the default text you entered after the colon would be displayed instead.

2) Don't use it for misspelled/typo keywords. Not only do the engines frown on this, I personally think it just looks very unprofessional to have typos in ad text -- even if that's how the searcher queried.

3) DKI is not a loop hole for including trademarked terms in ad text.

4) Make sure that the default text you designate makes grammatical sense and adheres to each engine's editorial guideline.

5) If majority of your keywords are long tail, which means they may exceed the max character limit for the headline, then try DKI in the description.

6) I've heard that DKI doesn't work on Content networks, however have read some posts in blogs advising that Google inserts the most relevant keyword from a Content targeted ad group.

Try an initial cap display URL (www.PPC-Buyers.com vs www.ppc-buyers.com) to increase click through rate as well. Also, I strongly advise rotating at least three ads per ad group/order.

This is another great source for understanding DKI: The Ultimate DKI Guide