The Google Adwords keyword tool allows you to research the best keywords for your campaign.

The Google Adwords keyword tool will help you uncover dozens of effective keywords that you can tie to your Adwords campaign. Now that you have set up your Standard Edition account, you are ready to access this valuable tool.

Remember the definition of a Keyword? It is a single or multi-word phrase that is typed into the Google search page. In this step, we will be using the Google Adwords keyword tool in order to uncover viable keywords for your campaign.

Here are a couple of important definitions you should understand before working with the Google Adwords keyword tool.

Important Definitions for this Section

Keyword Demand: Keyword demand is simply the number of times a particular keyword was searched in the most recent month at Google.

Keyword Supply: Keyword supply is simply the number of web pages that contain a specific keyword.

Because you won't be using Google Adwords as the primary method of driving traffic to your website, you can focus on uncovering "bargain" keywords when using the Google Adwords keyword tool. Bargain keywords are focused keywords with a reasonable demand and low supply, making them inexpensive to bid on but still driving a good amount of traffic to your landing pages.

Your goal is to come up with a dozen or so keywords related to your business and then use the Google Adwords keyword tool to add a lot more. Think of this particular step as a brainstorming step. We want to uncover lots of relevant keywords and not be too concerned about organizing them just yet.

Start by writing down 6 or so keywords related to your business. For example, if your business sells orthopedic pillows, you might come up with the following:

You may come up with a dozen or only 3-4. That's ok at this point - don't worry about it - just make sure the keywords you select are relevant to your product or service.

Before we go into details on the Google Adwords keyword tool, I want you to take a look at 5 or 6 websites that you consider your competition. You are about to spy on the keywords your competitors are using. To do this, bring up their webpage and find an area of the screen with no links. An area on the webpage with just white space is perfect. Right-click on this area to bring up a menu that will allow you to select "View Source." Select this and you will be able to view the webpage HTML coding. See the picture below for clarification.

Once you have the HTML code displayed, you will want to look towards the top of the HTML page for the following tag.

Remember, the above line is just an example so the page you are looking at will obviously have different keywords listed. There may be only 3 or 4 as in the above example or there may be a dozen. Write these keywords down as you visit your competition.

Important Note

I'm not advocating you steal your competitor's keywords. We all know stealing is wrong, right? I learned that the hard way when I tried stealing a pack of gum at the local candy store when I was 10. What I am advocating is taking a very close look at what keywords your competition is using and using that information to your advantage. That is called a "smart business strategy." Seeing what keywords your competition is using will allow you to think of new keywords not on your original list. You can then use the Google Adwords keyword tool to determine how effective these will be for your campaign.

When you are finished looking at your competition, you should have a list of 15 or more keywords related to your business. Now it's time to use the Google Adwords keyword tool to add even more keywords and start building a comprehensive list.

Once you have the Google Tools page open, click on "Keyword Tool." This will open up the Google Adwords keyword tool. This is what we will use to uncover more keywords related to your website.

Start by making sure the "Descriptive words or phrases" button is selected and that a check is placed in the "Use synonyms" box (see figure below.) Type your keyword list into the box provided, making sure to hit "Enter" after you type in each keyword. Make sure only one keyword is entered per line. There is no need to capitalize your keywords when entering them in the Google Adwords keyword tool.

Hit the "Get Keyword Ideas" button and your off and running. The screen will expand to include a "Filter my results" area and the expanded list of keywords below that. In the "Filter my results" area, choose "Show All" from the "Choose columns to display" drop-down menu and enter the value "1" in the "US Dollars (USD $)" box (see figure below.) Note that if you enter a value higher than $1 for max CPC, you will get additional (and more expensive) keywords to view. Using $1 is a good starting point but feel free to enter higher values. If you have the potential to close a $1,000 sale, then it may make sense for you to bid on more expensive keywords.

Now we are ready to start building our library of keywords with the Google Adwords keyword tool. But first, there are a few definitions you should know.

Definitions for the Google Adwords Keyword Tool

Estimated Avg. CPC: The estimated average CPC (Cost Per Click) is the theoretical amount you would pay each time someone clicks on your ad. This number is just an estimate and tends to be inflated a bit. Use these numbers to give you a relative idea of keyword costs.

Estimated Ad Position: This number tells you in what position your ad would show (on average) based on the average CPC value you entered. So, if the value states "1-3", it means your ad would, on average, display as the 1st, 2nd, or 3rd ad from the top. This is the most desirable position but also costs the most.

Advertiser Competition: This bar graph gives you an idea of how many people are bidding on this very same keyword. The longer the bar graph, the more the competition and the more you will need to bid on that keyword in order to get a higher ad position.

Search Volume: This bar graph shows a relative measure of how many people are using this exact keyword in their searches on Google. Google gives you data on the previous month as well as a total average search volume.

Now, with those definitions in mind, we are ready to look at our data. First, let's sort it by "Estimated Avg. CPC." Do this by simply clicking on the "Estimated Avg. CPC" column (see figure below.)

Now we will start selecting keywords that we can buy for a relatively low amount but still have decent search volumes. You will need to use your own judgement for this but keep these three points in mind as you scan the results of the Google Adwords keyword tool.

1. Look for low-cost keywords but don't rule one out because it seems too expensive. Remember, the Google estimates are just that - estimates. Google uses quality of content as a measure of the Cost-Per-Click for a particular keyword (as well as a host of other criteria.) Create a great campaign with a high click rate and your Cost-Per-Click (CPC) will go down. Create a lackluster campaign with a low click rate and Google will increase your CPC. Google rewards successful campaigns by charging less and penalizes poor campaigns by charging more. This makes sense because Google is in the business of providing quality search results. The more successful you are, the more successful Google is!

2. Look for "value" keywords. These are keywords that have a pretty low Cost-Per-Click but a decent search volume. Remember, you are not using the Google Adwords program as the primary means to drive traffic to your website (at least you shouldn't be!) This means you should focus on these value keywords - keywords for which you do not rank high organically but which provide a low-cost way to drive additional traffic. Below are some examples of keywords with a decent search volume but relatively low competition. These keywords will cost you less but still drive some traffic to your website. It's possible you may not find many value keywords for your business - that's ok. What you want to avoid are keywords that have high advertiser competition with a low search volume (unless you have the ability to close a high-volume sale.)

3. If you sell a high-profit product or service, then you can go beyond the "value" keywords and select some that have a higher "Estimated Avg. CPC." For example, if your company is involved in consulting services or a business like real estate, take a look at these more expensive keywords. Sure, it may cost you $1 per click, but if you are able to convert 2-3% of those click-throughs into a high profit sale, it could be worth it. You can enter a value higher than "1" in the "US Dollars (USD $)" box in order to see more expensive keywords. Remember, the Google Adwords keyword tool tends to overestimate the cost on keywords so it is very likely you can tie them to your campaign for less than the given values.

A Note on Organic Keyword Ranking

What happens if you find your website ranks in the top 10 for one (or more) of the keywords you have identified? In my opinion, you should remove it from your keyword list. Why pay for a keyword in which you already rank in the top 10? Instead, spend your money on keywords in which you do not rank highly. Ultimately, your goal is to improve your on-page criteria so that you start ranking higher organically on some of these keywords.

Ok, ready? We will now start selecting the keywords we want to possibly use for future campaigns. The Google Adwords keyword tool will allow you to select and save various keywords so they can be accessed at a later time. Go through your entire list and select keywords by clicking on the "Add" link which is the last column in the displayed data (see figure below.)

By the way, want to sort the data by a particular column? Just click on the column name and the data will sort itself either "high to low" or "low to high."

As you select various keywords, you will notice that they are moved over to the shaded area to the right of the Google Adwords keyword tool screen. This area is labeled "Selected Keywords" (see figure below.)

Continue to build your library of possible keywords. If you think of a keyword that is not on the list, just click on the link "Add your own keywords" in the shaded area. A box will open up allowing you to add in your keyword(s). Now is a good time for a few more definitions that you should understand.

Additional Definitions for this Section

Broad Match: This is the default option but not the recommend selection if you are new to Google Adwords. If a particular keyword like "tennis shoes" is defined as a broad match, then your ad will come up when a user searches for "tennis shoes," "tennis," or "shoes." The name of the game in Google Adwords is targeting. Keywords that are defined as a broad match allow a little too much leeway. I don't recommend you set any of your keywords to "Broad Match" until you have more experience running your campaigns.

Exact Match: This option will only serve up your ad if this exact keyword (no variations allowed) is typed into the search engine. If you are confident a specific keyword phrase should be attached to your ad (with no variations to that phrase), then you can define that keyword as an "Exact Match."

Phrase Match: This is the option I recommend you start with for all your keywords. It ensures that the phrase typed into Google contains your exact keyword although other words may be included as well. For example, if you define "tennis shoes" as a phrase match keyword, then your ad will come up when someone types in "white tennis shoes." To set your keywords as a phrase match, just select "Phrase Match" from the drop-down menu in the last column of the Google Adwords keyword tool screen. When you do this, you will see that all your keywords are now enclosed in quotes. The quotes simply signify the keyword is now a phrase match keyword.

Negative Match: A keyword may be defined as a "negative keyword." This helps weed out irrelevant searches. In our example of "tennis shoes," we could define "free tennis shoes" as a negative keyword. This would keep our ad from showing when someone typed in "free tennis shoes" but allow the ad to show when someone simply typed in "tennis shoes." If you define a keyword as "negative" and then add it to your list, you will see a "-" sign in front of the keyword. This is to help remind you it is a negative keyword.

So, if you haven't already set your keywords to Phrase Match, go back to the Google Adwords keyword tool now. The last column of data is titled "Match Type." Select "Phrase Match" from the drop-down menu. Leave it on "Phrase Match" for now. You can always come back and change the match category of any particular keyword once your campaign is up and running. However, if your are confident that a certain keyword should be defined as a "negative keyword" or an "exact match" now, by all means, define it as such.

Continue building your library of keywords using the Google Adwords keyword tool by clicking "Add" to transfer them to the shaded area. When you are finished, click "Save to Ad Group" and all of your selected keywords will be saved to the temporary ad you created and paused. Note that this tool also allows you to delete keywords from your list if you change your mind.

Helpful Tip

Now is a good time to tell you that you should feel free to click on all the little questions marks ("?") the Google Adwords keyword tool provides. As you continue researching and selecting keywords, these "?" links will provide valuable insight and be an important part of your education as you build your campaign.

Before we move on to the next step, keep in mind that once you build your initial library of keywords, you aren't done. You will uncover may more keywords as you start using the additional tips given on this site. When you do, simply add them manually. Using the Google Adwords keyword tool, you will always be able to select, sort, and monitor the average click through costs on all your keywords. You will also discover pages that you should build on your website that are focused on these particular keywords. Maybe you need to pay to get traffic for those keywords now but by building a page on your site with content focused on that keyword, you may rank high enough organically in six months that you no longer need to pay for it!

At the risk of being too repetitive, Google Adwords is a traffic supplement - not the main strategy for driving people to your site! Your main strategy is to develop content focused web pages that drive traffic organically. Ultimately, you want to build a business that drives thousands of people to your site free of charge.

Ok, your now ready to understand the difference between a campaign and an ad group. Understanding these two areas is the key to organizing your campaign.

The Google Adwords Keyword Tool - Part 2

Researching Your Keywords