Definition: Dynamic Keyword Insertion, or DKI, is an advanced form of Pay-Per-Click (PPC) advertisement that changes ad content to match a search query. In ecommerce, this technique is most useful when creating ads that are grouped around a single subject, since the ads can be automatically tailored to be more relevant to the exact search term.
Effective search marketing for ecommerce generates visibility for conusmers with an intent to purchase. For example, a merchant specializing in cat food wants to increase visibility on SERPs for queries which denote a user's intent to buy cat food.
If they have an ad campaign titled "Need Cat Food?", it can use Dynamic Keyword Insertion to further appeal to a user's specific query. This could include:
Each of these keywords appeals to a different value customers might have. Individually, each may not bring in a great number of customers, but advertising to all of them can help bring in enough sales to make the advertising campaign worthwhile.
By necessity, the landing pages for Dynamic Keyword Insertion campaigns can't be overly targeted. Users could arrive from multiple different keywords, so the page needs to have the flexibility to remain relevant for all of them to maintain or increase conversion rates. In this case, a landing page showcasing the company's varieties of cat food would probably be the most appropriate choice.
To work well, Dynamic Keyword Insertion requires that every keyword in the campaign fits with the ad. This is usually accomplished with a straightforward [Adjective] + [Noun] format, especially because the character limitations on pay-per-click ads tend to make long-tail keywords too difficult to use.
If the keywords are too different to reconcile with a single landing page, Dynamic Keyword Insertion should not be used. Similarly, if there's a keyword that doesn't work well with the rest of the ad, it shouldn't be used there at all — it would be better to run that as its own separate advertisement. Dynamic Keyword Insertion is easy to set up once a company knows how to format it, but the overall quality of the ad is more important than how quickly a campaign can be set up.