Google KW Tool Confusion

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balotz

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Hi guys,

another noob question....

I did some kw research and have noticed some nonsense.
Lets name keywords A and B
Kw A: Low competition, CPC $25, 1600 Exact US Searches
Kw B: High competition, CPC $1 (!?!?!?!?!?!??!!?) 1600 Exact US Searches

How it is possible that kw B have higher CPC, if competition for kw A is Low?!?!?

Btw. SEO comp for kw A is pooooooor and kw B is very hard to beat!
I'm going to make a website for the A kw.
Am I an idiot?:o
 
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Does it mean that average CPC on kw A can REALLY be even near that $25(-30%) ?!?!??
 
Yes, some keywords are worth more money due to people investing money in adwords for that keyword.

For examples if a keyword like "Buy Insurance" Had 5K Exact searches and "Cool Animals" had Exact of 50K. Nobody is going to be bidding on Cool animals. Insurance companies however will be bidding on Buy insurance, because they will make much more money from it.

THESE ARE NOT THE REAL EXACT MATCHES FOR THESE TERMS BUT YOU GET IT.
 
I know that...pretty logical.
My question is how it is possible that kw with $25 CPC has low competition and kw with $1 CPC has high competition. It makes no sense for me. :confused:

CPC for kw A should be much lower than CPC for kw B. In my opinion...


BTW I would be more than happy if I could make $50/month from that kw(after I rank #1)...
 
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balotz said:
I know that...pretty logical.
My question is how it is possible that kw with $25 CPC has low competition and kw with $1 CPC has high competition. It makes no sense for me. :confused:

CPC for kw A should be much lower than CPC for kw B. In my opinion...
Click to expand...

Competition and price are two different things.

I could have 1000 people want to buy a used computer for $50 BUT I could also have 2 people want to buy a brand new one for $3,000.

There is higher volume on the first example therefore more competition but a lower cost.

In adwords it's likely that there are less people bidding but bidding a higher dollar value to have the first positions.
 
SaraJ said:
Competition and price are two different things.

I could have 1000 people want to buy a used computer for $50 BUT I could also have 2 people want to buy a brand new one for $3,000.

There is higher volume on the first example therefore more competition but a lower cost.

In adwords it's likely that there are less people bidding but bidding a higher dollar value to have the first positions.
Click to expand...


Thank you, that's the answer :)
And according to that, best ad unit for kw A is image unit (only one spot) ?
 
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