Most search engine has different matching types for their Pay Per Click (PPC) programs. Since Google has the largest market share of online searches, this article focuses exclusively on their keyword matching options.
Exact Match

Exact match is exactly as it reads; it will provide exact matches for the terms you type inside the brackets on your account. For example, the keyword you typed for the exact match should read [banana cake]. Ads that are related to this exact match will only appear for specific keywords; for example, it will appear for “banana cake” but not for “banana cake flour”.
Phrase Match

Phrase match is a little bit broader than exact match. You need to use quotes in your account if you want to take advantage of phrase matching. For example, [banana cake] in the exact match should look like “banana cake” for phrase matching as quotes need to be used.