this is my first post, but i have been reading the forums for a number of months now and have found them to be an invaluable resource. kudos.
this question is for those who bid on both less used/lower priced keywords as well as higher priced/higher competition keywords.
is competing for a high ranking position on the more competitive keywords worth the expense? does the quality of your leads tend to be better for doing so?
granted this probably varies a bit depending on your area of business. but to put it into perspective, i am referring to less competitive keywords of about $.05 - $.30 verses more competitive keywords of about $3.00 - $5.00+ to maintain the position of 1st - 3rd.
thanks for your input!
there are so many variables at work that somebody elses info is unlikely to be of use to you. Your site's conversion rate being of prime importance when calculating your break even point.
The vicious circle is derived from the following 3 points:
1) Price is a function of supply and demand
2) Advertising is all about measurement. You have to try it to find out whether you can obtain a positive ROI.
3) By definition, competative keywords have many new advertisers entering the market every day.
So the problem is that the price for competative keywords is set by the huge demand for testing. This demand puts the price up so high that you will probably not see an ROI and give up; only to replaced the next day by someone else ready to maintain the status quo.
I'm sure people can and do master the competative keywords, but it probably takes more creativity, time, patience and budget than the overwhelming majority of new entrant testers have.
