When you add a keyword to Google Ads, you are not telling Google "only show my ad for this exact string of words." You are telling it how flexible to be about which searches count as a match. That flexibility is set by the keyword's match type, and it is one of the most consequential decisions in a campaign.
The reason it matters so much comes back to how you pay: every click costs money whether or not it converts. A match type that is too loose invites clicks from searches that have nothing to do with your business, and you pay for every one. A match type that is too tight can leave you invisible for perfectly good searches phrased slightly differently. Match types are how you tune that trade-off between reach and control.
There are three match types today: broad match, phrase match, and exact match. Google's older "modified broad match" has been folded into phrase match, so if you read older articles referencing it, that is why.
