How Google's Keyword Tool Can Point You Toward Profits
Aiming too broadly is a huge mistake many people make when
starting out in online business. The key to online business
success is to focus on a small niche market and then put all your efforts and resources in that niche
The problem is how do you identify a niche market?
One quick way to establish whether an idea or niche market has potential for success is to observe the keywords
for which people are paying to advertise.
Ordinarily, there will be stiffer competition in search engines for high pay-per-click bids. So, should you
ponder a market where you cannot stand the competition for the top position in sponsored listings for the highly
favored keywords? Well, may people will advise you against considering such a market.
However, all hope is not lost yet. A lot of PPC advertisers make just the same mistake as prospective online
entrepreneurs do – targeting too broadly. They spend a lot of money to get listings in the top spot for keyword
that are too broad and simply lead to no conversion.
With this information, you can use pay-per-click data to your advantage and establish whether or not you’ve
found a viable market so that you don’t get mired in a worthless online business venture.
With the free
Google Adwords Keyword Tool, you can determine the number of searches done on a keyword each month, in addition
to how much is spent on each keyword for a top spot in sponsored listings.
To get this information, type some words associated with the niche you want and tick the ‘Use synonyms box’.
Group the columns into Keywords, Estimated Ad Position, Estimated Average Cost per click and Global Monthly
A list of keywords similar to those you’ve entered will be displayed. And then by default, the cost of the top 3
spots on Google sponsored listings will also be displayed.
If all keywords in your chosen niche cost $1 and more, you may probably not be able to compete. if advertisers
can pay $1 for a click at a conversion ratio of 1 percent, then they are paying upwards of $100 per customer.
Therefore, you’re faced with one of two possibilities:
1. That market is saturated, and you should keep as far away as possible, regardless of how impressive the
global search volume may seem. It will drain you a lot in costs, not to mention the fact that you lack experience
to compete favorably.
2. The niche is very broad to start with. You have a chance to further narrow your idea to a more targeted
niche. Look through the list of keyword ‘clusters’ that address the same problem. Get more keywords from those and
see if the numbers change. Through this refining process, you can easily identify a golden niche.
You can compete favorably in this market if:
• There are many reasonably priced keywords (less than $0.25) in the top three spots.
• There are reasonably priced keywords in lower positions but on the first page.
• The reasonably priced keywords clearly depict the searcher’s intention – here you can establish their
main problem and work towards a suitable solution.
These are some of the indicators that you’ve found a good niche market,
and from here, you should analyze the competition to determine whether to go on.
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