An exact match is a keyword that is between square brackets such as:

[round plastic widget]

It is triggered only when the search used exactly matches, words in exact order and only those words. Therefore, the following searches will not trigger on an exact match keyword:

round widget plastic
round plastic widgets
blue round plastic widget
round plastic widget for thingamagig

Phrase matches are surrounded by double quotes such as:

"round plastic widget"

and trigger if that phrase appears in the search term exactly. There can be words before or after, but the words have to be in the same order.

What your example shows is the DKI, Dynamic Keyword Insertion. It inserts the keyword that triggers your ad into your ad. It only does so if the line length limits are not exceeded and if so, uses the default text you specify. Note that it is the keyword that triggers your ad that is used, not the search term.

Also note that in your example, only the initial letter will be capitalized. Therefore, the heading will show as (if the keyword used was "3d animation college"):

3d animation college

It doesn't matter if your keyword is entered "3D", it will still show as "3d".

To capitalize each word, use {KeyWord} so that your ad will show as:

3d Animation College

As Lucid explains is correct as for the DKI, as to if it is worth it you will find a split response in outcomes, some ads do produce a better CTR and others nose dive with no rhyme or reason.

So it is a good option to use as a alternate to split test you will get those winners but it does not guarantee them.

As Lucid mentions use KeyWord with the two caps to enhance the title line

If you want to go further you can opt to add the DKI to the body lines or even the display URL

3D Animation College
An Exciting Career in Video Game
{KeyWordesign Awaits, Enroll Today!}


3D Animation College
An Exciting Career in Video Game
Design Awaits, Enroll Today!
/{keyWord:3DCollege}