Today, Google sent an email to at least some Adwords advertisers that on May 20th, 2008, a new feature will be available for beta testing. 

The feature is a new match-type called “Automatic Matching”.  It will be installed on existing Adwords accounts already in “enabled” status, regardless of their current match-type selections.  Selected advertisers have the option to actively ‘opt out’, but this will require editing the campaign settings to uncheck a new checkbox (which will be prepopulated as ‘on’) in each account.  Will this be able to be set by API call?  At this point, it remains to be seen.

Automatic Matching looks to be the next evolution of Broad Match.  In this iteration, Google will use theming learned from landing page spiders, existing keywords and ad copy (all factors in the current Quality Score algorithm) to expand upon the matching of keywords to actual search queries. 

In addition, Google claims Automatic Matching will adjust itself  based on performance.  This means that the system will spend more where click through rate proves to be highest.  And, according to Google, will aim to generate costs per click (CPCs) equivalent or lower than the ad group’s current averages. 

All very interesting.

So, what does it mean?  This is a logical step toward Google’s goal of Adwords becoming capable of truly supporting self-service advertisers.  Assuming that the system works as intended, and assuming that it works when rolled out on a large scale, Automatic Matching could potentially reduce the need for long keyword lists and time-consuming research and lengthy keyword ideations.  If so, it would be a “win-win” for both advertisers (advertisers could increase their coverage without extra time spent on their account) and for Google (Google gets to monetize a larger percentage of search queries from broad match-types than exact match).

Only time will tell how the new feature will actually behave.  I, for one, will be keeping a very close eye.