The number of advertisers bidding on a keyword determines its competition.
In markets where many advertisers compete for visibility, keyword CPC tends to be higher Level of competence.
For example, if you’re in real estate in New York, the competition for keywords like “real estate agent New York” is high (as seen in the “Com.” column, which is short for Competitive Density). Therefore, your CPC will also be high.
To manage this, consider being more specific with your business and targeting less competitive keywords like “commercial real estate agents in New York.”
Read more: How to create an effective PPC strategy in 7 steps
Search volume
Search volume shows how often a keyword is shop searched for over a given period (usually per month).
Keywords with high search volumes are often more expensive due to their potential to attract significant traffic, which attracts more bids (increasing competition).
However, high search volume also means greater visibility and opportunity for brand exposure.
For example, a company offering CRM software might encounter expensive high-volume keywords like “CRM software for small business” due to high levels of competition. But these keywords could be very valuable and deserve the highest CPC.
So when selecting keywords, consider search volume in relation to your campaign goals and budget.
Relevance of keywords
The relevance of your ad to the keywords you’re targeting influences your CPC.
It’s not just about selecting relevant keywords, but also about making sure your ad text matches the search intent of those keywords.
For example, if your ad is for eco-friendly innovative strategies to boost organic traffic office supplies, your ad text should specifically highlight aspects like “sustainable” or “eco-friendly” by targeting keywords like “sustainable office supplies.”
Close alignment between your ad text and keyword intent can improve your ad performance. And it can lead to a more profitable campaign, as it improves the overall quality of your ads. Which can lead to lower CPCs.
Network Choice
You have two main options when advertising on Google: the Search Network and the Display Network .
The average CPC on the Search Network is usually higher, but it’s good for reaching people who are actively searching for what you offer . That’s because your ads appear right where people are searching.
On the other hand, the Display Network (which also uses keywords to match ads with related sites) typically has lower costs per click.
This network typically has lower CPCs, partly because it’s more about building awareness than immediate clicks.
Seasonality and market trends
Keyword costs can fluctuate depending on the time of year or current trends Level of competence.
For example, keywords like “Christmas gifts” often become more expensive during the holidays due to increased demand.
Businesses may bid more on these seasonal keywords to capture the most search interest, which drives up the cost.
Understanding these patterns is important for effective planning and budgeting, especially in industries affected by seasonal trends or specific events.
Linking strategy
Google offers two approaches to setting bids for your ads: automated and manual bidding. And this can affect the cost of your keywords.
Automated bidding (where Google sets the bids for you) can be more expensive, especially in competitive markets where optimal bid amounts are constantly changing. However, it saves you time by automatically adjusting bids to maximize your ad’s performance.
Manual bidding, on the other hand, allows you to directly control your bids. It requires more attention and adjustments, but can be more cost-effective as it allows you to set limits based on your budget and campaign goals.
How to choose the right keywords for your ads
Choosing the right keywords for PPC ad campaigns involves strategically weighing factors like relevance, competition, and cost. You want to choose keywords that are relevant to your business, but also, ideally, with lower costs per click.
Here are some factors to consider when choosing keywords for your advertising campaign:
What keywords are your competitors targeting?
If your competitors share the same target angola latest email list audience as your company, it is a good idea to analyze and learn from their advertising campaigns.
To do this, you can use the Semrush Advertising Research tool Level of competence.
Open the tool, enter your competitor’s domain and click ” Search “.
