Most of you are very familiar with the terms Cost-Per-Click or CPC for short. It is a term that is extremely prolific in the internet marketing world, for both advertisers and publishers. However, most publishers do not think about how CPC is going to affect their Adsense account. Because of this many new marketers unknowingly develop a website for a niche that turns out to be low-paying.
So how does one determine if a keyword will be profitable enough for them–by using a variety of tools available from Google. It is actually quite easy to determine a rough estimate of what your average CPC will be. You will first want to load up the Google Adwords Traffic Estimator. Once that is done, enter the captcha and then enter the keyword or keyword phrase in question into the box in the upper left hand corner.
It is important that you have already chosen your keyword using another program, whether that be Market Samurai or the Adwords External Keyword tool. This is because the Traffic Estimator is only going to give you search volume for your local area, so it is good to remember to only use this tool to find the potential CPC of a keyword.
In this example we are going to use the keyword: make money online. As you can see in the screen shot below, at the time of running this search the Estimated Average Cost-Per-Click (CPC) is $2.20.
It is important to keep in mind that this number usually reflects the content network only. So how do I figure out what the CPC will be on the search network? Well you could start an Adwords campaign and it would tell you, but the easiest way is to just do a search for your keyword in the Google search engine. If the search results are filled with advertisements you can definitely bet the CPC for the search network is going to be nearly the same price as the content network, sometimes much greater.
So how do I figure out what my revenue take will be?
Google recently announced in 2010 that it shares 68% of its Adwords revenue with publishers. This means that for every click you accrue on your website you will be paid 68% of what the advertiser paid to Google to run the advertisement. An easy way to understand would be:
CPC x 68% = Your Cut
So in this case, you would be getting 68% of an average $2.20 CPC giving you a $1.496 per click on average for running those ads on your website. Now of course this is just an average, and it is very likely that you will be paid less for clicks. Why? Because if an advertiser pays Google a lower CPC to run the advertisement you will also get a lower payment.
This is why it is important to factor Cost-Per-Click into your keyword research. By doing this you are allowing yourself to get a better idea of how profitable a certain niche will be when running Adsense Ads.