Does AdWords Campaign Manager use Googles Dynamic Keyword Insertion (DKI) function to generate ads containing the searchers keywords?”
A. No. Although this primitive technique increases click-throughs to the landing page, Google cannot recognize it as a click-through because the actual advertisement text contains a placeholder, not the actual keyword. The click-through rate (CTR) of the keyword is reduced, thereby increasing its cost per click (CPC). On the contrary, AdWords Campaign Manager creates an individual advertisement for every keyword, containing the actual keyword, thus increasing the keyword’s CTR and reducing its CPC. This could be called the “brute force” method, practicable only for a computer program and beyond the capability of a human.