KEYWORD RESEARCH: How to do Keyword Research and Competition Analysis.
NOTE: Since the recording of this lesson, Google has replaced the Google Keyword Tool with the Google Keyword Planner. Luckily, we can find the exact same information using this new tool. The lesson that shows how to use the Google Keyword Planner is further ahead (lecture 9). When you are done watching that video, come back and watch this video ENTIRELY (including the part where I am using the old tool). This is because there is still valuable information in there about how to analyze keywords.
In this lesson I teach you how to use the Google Keyword Tool to do keyword research and determine the approximate value of a keyword when it ranks #1 in Google (when monetized with Google Adsense).
In other words, if I get a website to rank #1 for "toaster ovens" and put Google Adsense advertisements on that website, how much will that website make per month passively?
The formula to determine this is:
(Keyword Average Cost Per Click) * (Global Monthly Search Volume) * (0.42) * (0.68) * (0.04) = Passive Monthly Earnings
The 0.42 is the average amount of traffic that will click on the first link in the search results. The 0.68 is amount of revenue Google will share with the owner of the website. The 0.04 is the average amount of visitors that will click on an advertisement when they land on a website.
So for "toaster ovens," this would be what you plug into the formula:
($1.04 average CPC) * (5,400 global monthly searches) * (0.42) * (0.68) * (0.04) = $64.16
A website that ranks #1 in Google for "toaster ovens" and is monetized with Google Adsense will make roughly $64.16 per month.
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