How to determine Value of a Keyword - Part 1

In my last tutorial, https://www.seocheckout.com/forum/...t-2-how-to.2665/, I introduced a term "keyword value". If you remember, I said that I'll come back with a tutorial on determining keyword value. With this tutorial I'll be fulfilling my promise. In this tutorial, I'll start with introduction to keyword value, it will be followed by importance of keyword value and then procedure to find value of a keyword. Note that, in this tutorial I'll not show how to determine exact value of a keyword. This tutorial will show how to determine approximated keyword value in relative to other keyword.
Keyword value is defined as "amount of money a sponsor willing to pay for buying that keyword". In simple words, every keyword you use has value in market. If you have adsense or any site similar to adsense enabled in your site, then based on keywords you have used in your website/webpage ads are shown. If you use high value keyword (keyword for which google has highest bid by a sponsor, at that moment), then you earn more ! The amount of money you earn is known as keyword value. I hope, now you have basic idea about what does it mean by keyword value. Now, if you determine keyword value before using it on your blog then there is a possibility that you can earn more from your blog/site. Now, I guess you understood importance of determining value of a keyword. If you are thinking about more points to show importance of keyword value, then I would say don't think about it. As the most important reason for determining keyword value is to earn more.
In this section of the tutorial, we will discuss about the procedure to determine keyword value, mostly related to google search engine. I know two methods to determine keyword value, one is standard way and another is customized way. In this installment of the tutorial, I'll share standard way and postpone customized way to determine keyword value to next installment.

Standard way to determine keyword value : It involves bit of investment, an account in google adwords and bit of understanding on how to advertise on adword. So, if you don't have google adwords account, I request you to create one before implementing or using this way.

• Understanding Competition : You need to do research on number of competitors you have for a keyword. It is because if number of search ads for a particular keyword is high then it's keyword value will be high too ! You can know competition by seeing the bid rate in google adwords.
  
• Number of Paid Ads on Google Homepage : Search for the keyword or phrase in google for which you want to know value. If number of ads shown are more ads above organic results, then it means those keywords are lucrative and you might need more bucks to put your bid on adwords.
  
• Buy a Campaign : Goto your google adwords account and create a new ad campaign. Please make sure you choose "exact match" option for the keyword you are bidding. Track CTR (Click Through rate) and number of impressions your ad has through this campaign for at least 50 clicks.
  
• Keyword Value Determination : Let us assume that your site is selling some service, in other words you get some profit when user perform some specific action on your site. Suppose, for you search ad there were 10,000 impressions, of which 200 users visit your site and only 5 of them actually bought your service or do some action which yields profit ( = revenue - amount invested in advertisement) of $450. It implies keyword value is $3.5 for your site !! If you analyze those numbers correctly, you might earn more than a million in a year ! Note that, the numbers I used are arbitrary. It needn't reflect real world scenario.
  

Phew ! You are done with calculation of keyword value. Wasn't that easy ? Let me ask you something, before reading this tutorial, did you thought it would involve complex process ? :rolleyes: Stay tuned to Webmaster tutorial Section of seocheckout for more tutorials and next installment of determining keyword value.