How do you find out much a keyword costs? This article will help you learn how to find out the costs of various keywords.
What are Keywords?
It doesn’t matter if a business’ product or service is the best in the world. Keywords build the bridge between business and consumers. In other words, optimizing these keywords are vital as they are a direct connection with consumers and businesses.
Typically, keywords are words that the common person would know to search online. Even if it’s a niche business or product, the keywords can be carefully constructed to suit that audience. Based on accessible results alone, proper keyword optimization can help build brand awareness, show credibility, and gain new eyes to fall in love with your products- or reconnect with loyal customers.
You may be wondering, “How do I find how much a keyword costs?” but in order to find out price points, you need to know which keywords you intend to use.
Let’s start brainstorming some possible keywords ideas. What describes your business? What services do you provide? How about the kinds of products you offer?
In those general categories, write down some more related terms. For example, the initial keyword might be clothes. Related terms may pertain to the quality of fabrics, material used, type of fit, etc.
Whatever those keywords may be, their relevance needs to be maintained by your services or products. There is so much freedom of choice when selecting keywords. In this context, quality over quantity is more important to sustain the likelihood of a positive user experience.
Google Keyword Planner
Within the Google Ads platform, there is an integrated tool called the Google Keyword Planner. Based on its own search engine data, the resource is a great way to check or expand your list of keywords.
How It Works
As previously stated, the Google Keyword Planner comes with a Google Ads account.
- Find the tool there and create a keyword plan.
- Then, discover more keywords by inputting one of your phrases or terms into its search bar. There, results along with additional information, that will be later discussed in this article, will popup.
- There’s an option to add these keywords to your plan to later be used in your final ad campaign.
Types of Keywords Categories
There’s different types of keyword categories that a business can choose from. On Google, they offer broad match, phrase match, and exact match.
A broad match is the default, generalized strategy. Search engines will prompt your ads to any related keywords as your designated ones. The broad match reaches a wider traffic because of its inclusive qualities. On the downside, the generality might hinder a user’s browsing experiences if they’re looking for something specific.
Modified Broad Match
The modified broad match allows for the same qualities as the broad match and a bit more specificity. Businesses can mark additional words, through “+” signs, indicating that certain keywords are relevant to certain products.
There’s also another tool called negative keywords where keywords are purposefully excluded. This would help with narrowing your general audience down.
A phrase match gets more specific than both modified broad matches. Ads will show for searches that pertain to its integrity to your imputed keywords. Google notes there can be variations of the phrase but that the ads wont for search terms that have an alleged different user intent.
An exact match is verbatim keyword searches. Spelling and grammar errors are excused. However, the searches would need to contain close variants. Businesses can benefit from its limiting traits if prospects are looking for a very niche item or service.
Benefits of the Google Keyword Planner
Beyond just planning keywords, the Google Keyword Planner provides the necessary in-depth research to optimize their search engine. In addition to the data helping with time and risk management, there are also other great benefits.
When you input a keyword into the planner tool, other keywords will pop up as well. In their associated boxes, Google provides the following performance insights for the relevant terms:
- Average monthly searches
- Competition – Google ranks it by low, medium, or high
- Bids — low and high page range
Volume and Forecast
Alongside the insights, they also provide an actual statistical analysis:
- Clicks: How many times an ad is clicked on. Click-through rate, also abbreviated as CTR, measures this. CTR is an indicator as to whether or not an ad is appealing enough for someone to decide to engage with it.
- Impressions: Abbreviated as IMPR, reports how many times the ad is shown. However, this doesn’t mean someone has interacted with it. Impressions are just a recording of what’s on the screen and if someone passes it.
- Monthly Costs: Based on a proposed budget
- Average Cost-Per-Click (CPC)
- Average Position: How the simulated forecast ranks against other businesses
In this context, you can see what your competitors are doing, depending on the level of bids and their scarcity.
Google Ads campaigns allows for you to customize your own budgets. With this flexibility, you can adjust the maximum amount of money that you’re willing to pay for a CPC.
Budgeting really becomes the art of balancing finances and strategies. For example, going above the average cost-per-click can lead to more conversions because you’re paying for more spotlight than other companies.
Relevant keywords and even forecasts are updated on a relatively frequent basis. The numbers are updated on a seven to ten day basis.
When looking at keyword relevance and the forecast, the location can be narrowed down from whole countries to an individual state level. This tool helps identify which keywords perform best geographically.
Keyword Cost Estimator Tool
So how do you find the cost of a keyword? By using a keyword cost estimator tool. As previously mentioned, Google’s Keyword Planners provide estimated costs with simulated results. Keyword costs are determined by how much a search engine charges you. But there is no definite price point because the market is always changing. As a result, the cost of a keyword will change as the market changes.
With bid simulators, businesses can see the ripple effect changing costs have on their ad performances. Google divides bid simulators into two different categories: manual and automated. A bid is defined by how much money a business is willing to invest into a click, per ad, and based on its monthly budget.
While the approaches are different, the simulations are based on quality score, network display, traffic, and competition.
To manually simulate a bid, adjust the max CPC and Google Ads will automatically modify how the ad campaign will be impacted. There are other manual simulators provided across these Google Ads tools:
- Video campaign bid simulator
- Hotel campaigns
- Device bid
- Call bid
Smart Bidding Simulators
Through artificial intelligence (AI), the smart bidding simulator covers more factors of ad performances. The additional tools tailor more to specific ad goals. Users get to see how their ads do based on the altercation of the cost-per-action (CPA) target, return-on-ad-spend (ROAS), or the average daily budget.
CPA means the amount of money invested into a worthy conversation. ROAS is a measurement on how much money a business generates back based on ads.
The Smart Bidding simulator provides insights based on an ads campaign performance – costs, clicks, conversions and conversion values – from the last week.
How are Keyword Costs Determined?
In addition to competition level, there are additional factors that determine the costs of keywords.
By default, ads will be spread across two choices: search network versus display network. You can choose which network choice to fit your needs.
As implied in the name, the search network is related to the search engine results page (SERPs), so a prospect would’ve already been Googling something of relevant interest. This includes Google’s online directories such as Business, Maps, Shopping, and other partner search sites.
As for the display network, ads will show up on YouTube, Blogger, Gmail and partnered websites. These are associated with bigger visual ads. For example, on Gmail they have expanded ads and on YouTube, interactive images and videos.
Google assigns a quality score based on factors such as: CTR, keyword relevancy, ad text relevancy, landing pages, and previous ad performances. These attributes signal to Google whether or not an ad is performing really well among its users.
The higher the quality score, the lower Google will charge you for cost per conversion (CPC). As a result, the return on investment will be higher because you will be charged less for prospects interacting with your business beyond the ads.
Other Keyword Tools
Google Analytics: The search engine offers more tools and resources outside of Google Ads and their keyword planner. After running campaigns of keywords, Google Analytics focuses strictly on data. From there, companies can analyze what is and isn’t working.
Google Trends: You can use Google Trends to see what’s the newest trending then/most searched thing. It also allows for a demographics element so you can see what’s popular in a certain region. There’s also the option of comparing it to another state.
SEO Design Chicago Services
If you’re still have trouble finding out the cost of a keyword, contact SEO Chicago Design. We can help you with figuring out the world of keywords and their costs.