Why Are Some Adwords Keywords More Expensive Than Others?
Investing in Google Adwords as a means to improving your inbound marketing stature is a wise move. But sometimes people dive in headfirst without really understanding what they’re doing. As a beginner, you might think that you simply need to select a multitude of relevant keywords and out-bid your competition. While this could be construed as true, it could also have you shelling out a lot of cash, unnecessarily.
Depending on your industry, keywords can vary in price on Google Adwords. The indicated Google Adwords CPC (cost per click) will give you an idea of what each click will fetch per keyword, so this can help you with your budget and deciding exactly how much you want to spend on a keyword. The more popular, highly-searched-for keywords are always going to fetch a higher price, which makes sense, but the industry you’re working in also has a lot of influence on the price.
Top CPC Industries
Financial industries including insurance command very high cost per click rates as there is heavy competition within the field. Other competing industries are law and establishments offering credit, all of which stand for lucrative businesses that stand to make a lot of money of their consumers. For these industries, the conversion of a consumer is highly valuable and is worth the amount paid per click, which can sometimes be more than $50 (R500). Signing a consumer for life insurance could fetch the business more than R500 a month, which makes it easy for an insurance firm to validate their CPC spend.
According to an infographic from Wordstream, these are the most expensive Google Adwords keywords and their associated CPC:
• Insurance – $50.91
• Loans – $44.28
• Mortgage – $47.12
• Attorney – $47.07
When Investing In More Expensive Keywords Can Be Worth It
Once you’ve set up the goals for your inbound marketing campaign, you need to ensure that your website (and specifically your chosen landing page) is optimal and relative to the campaign. If you’re going to spend all this money on advertising, you need to make sure that your audience will at least be prompted to convert. When everything is in place, kick-starting your Adwords campaign is the next step.
Your goals will more than likely equate to conversions of some kind. Fresh leads, buying your product or signing up for your newsletter are some examples of conversions. Putting a price on your conversions will help you decide exactly how much money you want to spend on the keywords that drive customers to your site. How much is a conversion worth to you? If one conversion means actual return on investment, you might want to consider spending more to get more, which would make investing in expensive keywords more worth your while.
Let us take care of the technicalities of negotiating Google Adwords budgets and CPC for you.