So, taking Kwerner's great suggestion, I'm moving this discussion to a new thread.
From biophases excellent ecommerce thread:
---------------------------------------------------------------------------------------------------------------------------------------
I'm playing around with Google Adwords tools trying to get a sense of it. So far I don't understand what the results are telling me.
For instance, say I want to start a website selling high-end kitchen stoves. Using Google's Keyword tool, I plug in "Kitchen Stove" and find that:
1- Competition is "High"
2- Global Monthly Searches = 49,500
3- Local Monthly Searches = 33,100
What does "High" competition actually mean? There are a lot of people using that keyword and the PPC price may be high?
If I plug "Kitchen Stove" into Google Traffic Estimator, $1 Max CPC, and $20 Daily budget, I find:
1- Avg. CPC is $0.59
2- Estimated Ad Position is 1.91
3- Estimated Daily Clicks is 8.52
4- Estimated Daily Cost is $5.04
From this I conclude if my site converts 1%, then each sale costs $59. I therefore need to figure $59 will come out of gross profit to cover the PPC campaign.
What does it mean if Ad Position is at 1.91? Is that on page 91? Is there a way to find out what somebody actually paid for their PPC ad?
Have I understood what the results are saying? Looking at the results of this analysis, what would you recommend? Different keyword search, more targeted niche, run for the hills?
---------------------------------------------------------------------------------------------------------------------------------------
Kwerner pointed out that I should be using [Exact] match on the left hand side of the page, which really changed the results:
---------------------------------------------------------------------------------------------------------------------------------------
Whoa - that really brought down the number of hits! For "Exact" match, I now get 1600 global and 720 local.
If I plug "Kitchen Stove" into Google Traffic Estimator, using "Exact" match, $1 Max CPC, and $20 Daily budget, I find:
1- Avg. CPC is $0.55
2- Estimated Ad Position is 1.89
3- Estimated Daily Clicks is 1.56
4- Estimated Daily Cost is $0.86
That doesn't look like a lot of clicks on my site. If I add the terms Gas Stove, Gas Range, Cooktop, and Electric Range and change to $10 Max CPC with $100 Daily Budget, I get 48 clicks for $75, or $1.56 per click. Each sale would cost me $156 (if I convert at 1%). The next task would be to see:
1- Is there enough margin to support $156/sale? If so...
2- Can I convert 1%? Can I improve on 1%?
3- I still don't understand with "High" competition means.
---------------------------------------------------------------------------------------------------------------------------------------
Pinnacle says:
The choice is yours.
It means you'll have a harder time standing out from your competition because there is so much of it. If you can't stand out in some way you won't make enough money to justify doing it, in most cases.
---------------------------------------------------------------------------------------------------------------------------------------
I tried changing keywords to find a niche with low competition.
So then - if I change the search term to "Electric Induction" [Exact], I get Low Competition, 480 Global searches, and 170 Local searches.
However, even if I put in $100 Max CPC with a $2000 Daily Budget, I get 0 estimated daily clicks. Why no clicks if there are searches?
This method seems kind of scatter-gun to me. Is there a more logical progression I should be doing?
From biophases excellent ecommerce thread:
---------------------------------------------------------------------------------------------------------------------------------------
I'm playing around with Google Adwords tools trying to get a sense of it. So far I don't understand what the results are telling me.
For instance, say I want to start a website selling high-end kitchen stoves. Using Google's Keyword tool, I plug in "Kitchen Stove" and find that:
1- Competition is "High"
2- Global Monthly Searches = 49,500
3- Local Monthly Searches = 33,100
What does "High" competition actually mean? There are a lot of people using that keyword and the PPC price may be high?
If I plug "Kitchen Stove" into Google Traffic Estimator, $1 Max CPC, and $20 Daily budget, I find:
1- Avg. CPC is $0.59
2- Estimated Ad Position is 1.91
3- Estimated Daily Clicks is 8.52
4- Estimated Daily Cost is $5.04
From this I conclude if my site converts 1%, then each sale costs $59. I therefore need to figure $59 will come out of gross profit to cover the PPC campaign.
What does it mean if Ad Position is at 1.91? Is that on page 91? Is there a way to find out what somebody actually paid for their PPC ad?
Have I understood what the results are saying? Looking at the results of this analysis, what would you recommend? Different keyword search, more targeted niche, run for the hills?
---------------------------------------------------------------------------------------------------------------------------------------
Kwerner pointed out that I should be using [Exact] match on the left hand side of the page, which really changed the results:
---------------------------------------------------------------------------------------------------------------------------------------
Whoa - that really brought down the number of hits! For "Exact" match, I now get 1600 global and 720 local.
If I plug "Kitchen Stove" into Google Traffic Estimator, using "Exact" match, $1 Max CPC, and $20 Daily budget, I find:
1- Avg. CPC is $0.55
2- Estimated Ad Position is 1.89
3- Estimated Daily Clicks is 1.56
4- Estimated Daily Cost is $0.86
That doesn't look like a lot of clicks on my site. If I add the terms Gas Stove, Gas Range, Cooktop, and Electric Range and change to $10 Max CPC with $100 Daily Budget, I get 48 clicks for $75, or $1.56 per click. Each sale would cost me $156 (if I convert at 1%). The next task would be to see:
1- Is there enough margin to support $156/sale? If so...
2- Can I convert 1%? Can I improve on 1%?
3- I still don't understand with "High" competition means.
---------------------------------------------------------------------------------------------------------------------------------------
Pinnacle says:
The choice is yours.
It means you'll have a harder time standing out from your competition because there is so much of it. If you can't stand out in some way you won't make enough money to justify doing it, in most cases.
---------------------------------------------------------------------------------------------------------------------------------------
I tried changing keywords to find a niche with low competition.
So then - if I change the search term to "Electric Induction" [Exact], I get Low Competition, 480 Global searches, and 170 Local searches.
However, even if I put in $100 Max CPC with a $2000 Daily Budget, I get 0 estimated daily clicks. Why no clicks if there are searches?
This method seems kind of scatter-gun to me. Is there a more logical progression I should be doing?
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