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Keyword competition indicates how many advertisers are bidding on a particular keyword. You can see in the “Competition” column of Google Ads’ keyword planner whether a competition for a certain keyword is “high”, “medium” or “low”, but it doesn’t give you the actual number of typical advertisers.
Given that Google Ads uses an auction system to determine the price for a click, If a keyword has high competition, it means the cost for that keyword is likely to be relatively higher compared to similar keywords. This may mean that the keyword converts into revenue well, or it may indicate that it is a broad keyword that is commonly used.
Low competition keywords have relatively fewer bids and so you can spend less to get clicks for those keywords. They may have low competition because they don’t convert into revenue well, or because they are “long tail” keywords that don’t have a lot of search volume. If using these keywords, do check your conversion stats to make sure they’re actually performing. If keywords are unpopular because they don’t bring sales or because they have very low search volume they may actually be more expensive in the long run.
If your budget is really tight, or if you operate within a niche industry then you can take advantage of under-bid keywords with a lower Cost Per Click. If you have a larger advertising budget you may find that you can’t spend your budget if you only use low competition keywords.
Here’s an idea – if you write an answer to a very specific question as an article on your website, try testing the question as a keyword. If it’s a long tail keyword it probably has low competition and low CPC, but because you’re answering the very question being asked, you should get a great clickthrough rate. Use SEMRush or Google Ads keyword planner to come up with good questions to answer.
This tip and many others are found at https://www.petramanos.com/category/tips/