Google has announced that from late September 2014 it will no longer allow bids on exact matches and will instead show ads for close variant matches to cater for the 7% or so searches that contain spelling mistakes.
The official line is that this will provide the advertiser with more, relevant clicks but in reality will this just result in a revenue boost for Google and higher spend (with perhaps even lower accuracy) for advertisers?
Until now the advertiser has had the freedom to specify an exact match, and has also carried the responsibility to decide whether or not to cater for close variants. Those wishing to control their budget, for example when first setting up a PPC campaign, may choose not to initially. However, this move means advertisers will no longer have this flexibility. Organic search results have had the “Did you mean…” function to cater for mis-spellings, and presumably this will continue, but paid ads will now show for close variant keyword matches as well as for the exact search phrase.
On the plus-side, of course, this does mean that advertisers who have been applying exhaustive lists of all possible mis-spellings and close variants to their campaigns will no longer need to do so.