Keyword Tool VS Traffic Estimator CPC

[Getwhatchuwant]

Ok, so I have a question. I was doing some research on a Niche and saw a very high "average" CPC using the keyword tool, so I went to the Traffic Estimator page and saw the CPC was MUCH lower. Can someone explain why the big difference and which is more accurate?

Thanks!

 

[toots]

From a Google forum:

"My thoughts on your question would be that although keyword A has higher local monthly searches in comparison to keyword B, but it might not be very popular among the advertisers who are using the keywords within Google Adwords. So, definitely a keyword might have higher searches, but there could be issues around if that keyword could be used for bidding purposes or not."

In other words, the Traffic Estimator could have different information regarding the actual recent bidding of that keyword.

 

[Getwhatchuwant]

From a Google Support thread:

"My thoughts on your question would be that although keyword A has higher local monthly searches in comparison to keyword B, but it might not be very popular among the advertisers who are using the keywords within Google Adwords. So, definitely a keyword might have higher searches, but there could be issues around if that keyword could be used for bidding purposes or not."

Note that this was not an official google answer.

Thanks for trying to help, I have seen very ambiguous answers like this too.

What I noticed is that even though the searches might be around 700-800 exact even when I hypothetically max out the bid ($50 pay per click, $10,000 daily budget) the traffic estimator generates only 3-4 clicks per day with around a $10 cost. So this tool is telling me that even with the #1 PAID position every day for a month I can only look forward to around 90-100 clicks even though there is 6-7 times more searches for the exact kw every month.

I find that very odd....

 

[toots]

My personal guess is that the traffic estimator is using your account history as one of the variables in the estimate.

I've had keywords in that past that I was getting 50 clicks/day from organic search, but the traffic estimator said only a few. Possibly they were judging me based on the fact that it was a new campaign, with a new ad group, in an account with very little spend history. So even if I pumped up my bids or budget, Google bases the estimate on what they know about me...not my grand plans to spend $50/click.

 

[Getwhatchuwant]

My personal guess is that the traffic estimator is using your account history as one of the variables in the estimate.

I've had keywords in that past that I was getting 50 clicks/day from organic search, but the traffic estimator said only a few. Possibly they were judging me based on the fact that it was a new campaign, with a new ad group, in an account with very little spend history. So even if I pumped up my bids or budget, Google bases the estimate on what they know about me...not my grand plans to spend $50/click.

Very interesting,thank you for the input.


Anyone else care to chime in?

 

[Getwhatchuwant]

No one else?