How does the Keyword Lasso recommend keywords to add?
The Keyword Lasso looks at the AdWords search terms report to find search terms that converted or have a high CTR.
The default mode suggests adding these search terms as keywords in the ad group they were triggered in. Or, you can use the advanced mode to add them to a different ad group and campaign.
You can choose the strategy you would like the suggestions to be based on.
CTR - This option will show search terms that have a high CTR
Conversions - This option will display search terms that have conversions
CTR and Conversions - This will show search terms that have a good CTR or have conversions
Custom Strategy - This will open up the custom filters that will let you set a threshold on conversions, impressions, cost, etc. to see suggestions based on your strategy. You can save this selection.
The system analyzes data for the last 90 days because that is enough time for search terms to perform. Since the suggestions are vetted by statistics date range does not matter. Unlike a regular search terms report, once you add the search term as a keyword it won't show up in the suggestions.
It automatically checks if the search terms are already present as keywords somewhere else in the AdWords account and doesn't suggest them.
Search terms can be added in one of the four match types - broad, phrase, exact and BMM (broad match modifier).