Keyword research for PPC advertising is similar to keyword research for search engine optimization. It's the process of developing a list of keywords and keyword phrases which can then be used to bid on in order to appear in the search rankings. Good keyword research focuses on finding terms which are relevant to your business, bring qualified traffic to your website and result in increased conversions (sales, leads, sign-ups, etc.).
Your keyword list can include one phrase or hundreds. Your total is potentially only limited by your budget. In developing a keyword list one must consider the search volume of the keyword, the relevance to your website along with the potential of converting that searcher into a customer and the bidding range of the keyword. Great keyword research focuses on those keywords which can deliver on ROI goals.
General search phrases (often one and two word phrases) often can't meet ROI goals. Frequently they have much higher search volumes and often higher bid prices. If searchers do click on your ad there will be little opportunity to convert them into customers. One reason is because often these searchers are earlier in the buying cycle. Another is that they may find that your site just doesn't fit what they were searching for. That's because, at this stage of a search, searchers are often looking for information which will allow them to further refine and narrow their search. Armed with additional information, they'll then conduct more specific searches. What this means is that you'll usually find lower conversion rates for these more general keywords. Lower conversion rates means your cost to acquire a customer (CPA) goes up. At some point your CPA will surpass your profit. That's when a PPC campaign is probably not working. However, for companies also interested in branding, bidding on general search phrases should be a strategy which is considered.
Keyword phrases can also be chosen which may bring traffic to your website but which are not relevant enough to your company, product or service. Again, these keywords will have lower conversion rates, thus higher CPA and probably not deliver on ROI goals.
Digital Road Consulting performs keyword research as part of PPC campaign management. Final keyword selection is always subject to client approval and based on client goals and budget.