The Power of Keywords
Why is Google so Valuable?
Have you ever wondered why Google is worth over a hundred billion Dollars? Or why a single click from Google can go for as high as $50? The reason is the precise targeting offered by search engine marketing.
How Most Advertising is Broken
Most ads try to club you over the head and beat you into submission. Search engine marketing is a completely different form of advertising because rather than trying to tell you what to do, the searcher requests to see the ads and views them as relevant to their wants, needs, and goals. Advertisers bid to show up where they are relevant – when they are irrelevant. If they bid for irrelevant keywords they lose money on every click.
2 Approaches to Marketing
Ads on websites with no targeting can have little to no value. Search traffic, which is laser targeted, is worth over 30x as much. 
For display advertising, Credit Suisse estimated that in 2009 the average CPM will be $2.39, down from $2.46 in 2008.
As for paid search, JPMorgan projected that for every 1,000 searches, $75.33 would be generated from ads in 2009.
Would you rather hunt for customers, or make yourself available to customers hunting for you? SEO allows you to tap the value of search, with your customers finding your business when they need your products & services!
Research the Market Value of Any Keyword
The cool thing about search engine marketing is not only is it so targeted, but it benefits search engines to share valuable keywords with prospective advertisers. This means you get to spy on the relative search volumes of different keywords, and how much your competitors are willing to pay for keywords.
Using the Google Traffic Estimator Sandbox you can view how much Google’s estimate the of keyword value at
Notice how there are 3 different listings for each keyword. They are based on Google’s AdWords ad match types, and can be used to help you know the relative search volumes between different types of searches.
- [credit card] represents searchers who searched specifically for the keyword credit card with no other modifiers in it.
- “credit card” represents all searchers in the above group, and searchers who searched for a keyword that contained credit card in it, including people who search for keywords like best credit card.
- credit card represents all searchers in the above group, and searchers who searched for any keyword that contained the words credit and card somewhere in their search string, including people who search for obscure keywords like payment card without any credit.
Enter some of your keywords here and see what Google thinks they are worth. Please note these values are rough estimates, but they are a good starting point.
- list down 5 important keywords to your business
- enter in all 3 match types for your keyword
- pick your language & markets
- do not enter a bid price (this way Google assumes you are willing to pay the market rate)
- hit enter & get your results
The above tool estimates the value of traffic to a single paid Google AdWords ad, but most searchers click on the free search results, so the keyword value to your business may even be higher than estimated by the above tool.
Tomorrow we cover other useful keyword tools as well as the keyword research and discovery process.