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Keywords

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# 1
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Hi, I have a doubt regarding Keywords. Some of the keywords have very low search volume and high suggested bid price. How could it happen? I thinking low search volume keywords have low bid price? What type of keywords can generate sales or leads? Any help? Thanks in Advance.

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Accepted by topic author James F
September 2015

Re: Keywords

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# 6
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@James F wrote:

 

If yes, as per the reference link you have provided i understood that bid price not only depends on search volume it has many other factors like advertiser competition, keyword performance. If any keyword has low search volume and high bid price means others have tried to use those keyword but they did not find any good results. So the bid price increased when they are bidding remains same. Please let me know that what i understood is right or not?


Yes, James. You have now understood it right. 

 

Happy Advertising !


Thanks
Ratan

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Re: Keywords

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# 2
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Hi James,

 

First of all, competition is not the metric for CPC. The CPC of a keyword depends on advertisers' willingness and consistency to bid on it, among many other factors. 

 

Let me guide you to a similar thread in this community. Going through it will answer your queries in a better way. It is here https://www.en.adwords-community.com/t5/Basics-for-New-Advertisers/Understanding-low-competition-hig...

 

If you still have any confusion, do come back here with your questions. We will be pleased to assist.

 

Thanks
Ratan

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Re: Keywords

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# 3
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I think competition & search volume are different factors for a keyword. I am asking about search volume and bid price. Did you say Competition means search volume in your reply? If yes, as per the reference link you have provided i understood that bid price not only depends on search volume it has many other factors like advertiser competition, keyword performance. If any keyword has low search volume and high bid price means others have tried to use those keyword but they did not find any good results. So the bid price increased when they are bidding remains same. Please let me know that what i understood is right or not?

Re: Keywords

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# 4
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Search volume and bid price is different issue. Such as:

Keyword : "Buy Iphone 6" Search Volume: 100 and Bid Price: 20$

Think about this keyword, When anyone search with this keyword. He/she needs a Iphone.
And when found your website and purchase from you. Last of all this keyword is very very effective and buying keyword.

When many people target this keyword, Adwords auction gradually increase their bids.

Re: Keywords

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# 5
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Hi James,
I agree with most of the people who have said that CPC is not solely dependent on Competition...

My take on this..
Every keyword has search volumes... advertisers don't bid higher for keywords just because their search volumes are high. I like to believe Advertiser are a little smarter than that.. irrespective of the volumes, if a certain keyword is profitable for them in terms of ROI, they may want to bring in traffic from there.
If the most profitable keyword for them is a keyword with low search volume, they may increase their bids just to ensure that everyone who searches for that keyword sees their ad. Now, if all advertisers started thinking like that, the competition will be high for those keywords inspite of them having low search volumes.
The CPC of that keyword will depend on how much this set of advertisers are willing to pay for getting those clicks.
To identify profitable keywords, TESTING is your best option! Use a mix of top level keywords (upper funnel/generic) and niche (lower funnel/conversion oriented/long tail/product specific) keywords.. in different match types... test these out and see what give you better results..
Optimizing your account is an ongoing process and you will take time to get the right balance of branding(traffic) and ROI driven keywords.

Hope this helps!
Cheers,
Shweta

AdWords Top Contributor
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Accepted Solution’!
Marked as Best Answer.
Solution
Accepted by topic author James F
September 2015

Re: Keywords

Top Contributor
# 6
Top Contributor

@James F wrote:

 

If yes, as per the reference link you have provided i understood that bid price not only depends on search volume it has many other factors like advertiser competition, keyword performance. If any keyword has low search volume and high bid price means others have tried to use those keyword but they did not find any good results. So the bid price increased when they are bidding remains same. Please let me know that what i understood is right or not?


Yes, James. You have now understood it right. 

 

Happy Advertising !


Thanks
Ratan

Join me on Google+


About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: Keywords

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# 7
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Does the remained high bid price will unchanged?