How to Find Profitable Keywords For Your Pay Per Click Campaign

As a pay per click campaign is designed to attract potential buyers to your business, selecting the profitable keywords is crucial. Informational keywords (people searching for free information) should be avoided and those keywords oriented to take action should be keywords database . In marketing terms, your target market is people who are looking to buy / acquire something and are looking for ways to do so. It’s what we call the ‘end of the buying cycle’ – your best chance at getting your prospect to buy something is right before he makes a purchase.

When you are looking at keywords, you can use the metrics mentioned below as a means to judge whether a topic is worth pursuing or not, but when you are doing keyword research, make sure that you target those keywords that prospects will be searching for when they are collecting information that will help them make a positive / negative buying decision.

An easy way to determine the profitability of a topic is to measure it by the ‘PPC metrics’ which are – Popularity, Price, and Competition.

Popularity

In crude terms, the more popular the topic is the more clicks you will get on your ads and the more chances you will have of converting those prospects into customers. Higher popularity means more profits for you. On the other hand, popular topics are already very competitive (in most cases), so you have to analyze it from all sides.

Low-popularity topics can also turn good profits, so just because a topic does not get 100,000 searches a month does not mean you shouldn’t go near it. The key is to match all three factors – popularity, price and competition – before making a decision to target that market.

Price

The price of the product you are promoting will determine your profit margins. With high-priced products you can afford to spend more money per click, and that’s mainly why you see such outrageous bids for terms like real estate, insurance, lawyers and pharmaceuticals – they can afford it because making a couple of sales gives them huge profit margins. On the other hand, with products with a low price point you will have trouble going overboard with your bidding, and you will need to be very careful with what you’re willing to pay. In such a case, keyword research becomes even more important as you absolutely must find those keywords that you can target cheaply.

Competition

What is your competition like? Heavy bidding will suggest one of two things – either the market is lucrative enough to risk investing so much money (back to the ‘price point’ discussion above) or there is someone trying to price their competition out of the market. In either case, you wouldn’t want to spend too much money at the start, so this step will give you an idea of whether you can enter a niche without getting totally burned. Another point to consider is that if there is low competition for a topic, you have to figure out why that is. Is it because the niche isn’t well known? Are people having trouble ‘selling’ in this market? Or are they targeting the ‘wrong’ market?

How To Do Keyword Research?

Once you have a topic, you can quickly run it through the following steps to judge its profitability and create a focused list of keywords.

For doing a keyword research, three steps should be followed:se the keyword databases to find out if it is popular · Research the PPC engines and find out what the top bid prices are · Go back to the keyword databases and create a focused list of keywords

Step 1 Popularity Check As a free resource, you can use the Keyword Selector Tool from Yahoo Search Marketing (formerly Overture). This will give you a list of keywords with search estimates.

Step 2 Bid Price Check Most people will tell you to go to the Yahoo Bid Tool and see their numbers to get an idea of what the top bids are. It’s a good idea, but why not go to Google instead and use the tools they have provided to us inside the Google AdWords account?. This way we get to see numbers for Google AdWords (where we will be bidding), and not some other PPC engine.

You should already have signed up for a Google AdWords account in order to use the AdWords tools. Within your account, go to Tools > Traffic Estimator to launch Google AdWords’ traffic and bid cost estimation tool.

Enter your keywords in the provided box (don’t worry about broad, phrase, exact and negative matches for now). These keywords will be the ones you saved in your spreadsheet. Next select the maximum cost-per-click that you’re willing to pay, as well as your daily budget. Since we are going for maximum clicks here (top ad position, unlimited budget), we will leave these empty because in that case Google automatically selects values that give you max clicks daily. Remember that this is for estimation purposes only.

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