Why High Ad Competition on a Keyword Phrase is GoodPosted: November 21, 2011
Usually, when looking at domain names or keywords in general for SEO, most people focus on value. How much value in traffic can the keyword phrase bring in with a high ranking?
For that, you’d turn to the average monthly search and the average cost per click that Google Adwords advertisers pay to advertise on the term. Multiply them together and take 40% (the expected traffic a #1 ranking gets) and you have the SEO value of the term.
But what if that traffic isn’t REALLY worth that much? What if those visitors don’t buy anything or tell others about your site? You could get a million visitors but if you don’t make money on them, what’s the point?
That’s where advertiser competition comes in. You might think that ideally you should want little or no competition on a term. After all, that would seem to indicate the traffic is ripe for the taking.
The fact is that traffic may be sour for the taking if there’s no competition. Instead, you want a ripe term, something that will give you valuable customers/clients in return.
High ad competition for a term tells you a few things:
1. The market exists
Unless you’re intending to be outside the box, you should ideally target keyword phrases in a defined market. People might search a lot for a particular phrase, but can a business be made that can make use of the traffic? High advertiser competition tells you there is a market for what the term describes.
2. The traffic is sought after
If you see only one or two advertisers on a term, it could be a case of broad advertisement or testing. They may not really be after that particular traffic in that case. Many advertisers on the other hand would tend to indicate that it is being targeted by some advertisers and is worthwhile for them to pay for.
3. At least a few advertisers are seeing continual profit
No company looks to advertising as a way to lose money. Even if they do initially, in that case they’re banking on lifetime value of the customers they get. High ad competition generally means at least a few advertisers have been on the term for a while. That would indicate those advertisers are seeing good enough results to stick with it.
4. You will have to compete
The one con of high ad competition is that you’ll have to compete for the traffic, but you should have expected to compete anyways. Unless you’re on the cutting edge of technology or innovation, you’ll be entering a competitive market. That said, the competition is meant to be beaten! Getting the exact match domain will help you do exactly that.
You should still focus on targeting a keyword phrase with sufficient monthly traffic that advertisers pay a high CPC for. Targeting a term with no value would be a waste of time. But before you commit to targeting the term, check for a healthy ad competition. That will help confirm you’re entering a lucrative market.
At Domainate, we specialize in exact match domains that can achieve high search rankings for valuable keyword phrases. Contact us if you need a domain to help you get valuable targeted search traffic for your business.