Golden Rule #4: How to Assess Commerciality
In this lesson we’ll be taking a look at the fourth Golden Rule of Keyword Research which is Commerciality. If you happen to break this rule you run the risk of missing out on the most profitable keywords in your niche.
This video covers:
Commerciality is a measure of the potential profitability of a keyword phrase.
A good way to understand this concept is to imagine that each keyword phrase is like a pipe that has a certain amount of monetary flow that you would like to tap into.
A high commerciality keyword is like a wide pipe that has a strong monetary flow. If you successfully tap into a high commerciality keyword, you have the potential to generate a large amount of profits.
A low commerciality keyword on the other hand is like a narrow pipe that has a weak monetary flow. If you happen to tap into a low commerciality keyword, you will most likely only generate a small amount of profits.
Why Commerciality Is So Important
Here’s why the concept of commerciality is SO important.
Imagine that after setting up your website, you do some keyword research and find a keyword phrase that passes the first three Golden Rules.
(1) It is relevant to your site
(2) It has high levels of traffic
(3) It has an acceptable level of competition
You then optimize your website for this phrase and manage to obtain the Number 1 spot in Google.
As a result, your website attracts a large number of visitors each day.
The only problem is that no one seems to be interested in buying anything.
One reason for this is that you may have unintentionally targeted a phrase that has a low level of commerciality.
Before you select a phrase to target in your online business, it is therefore very important to check the commerciality of the keywords you are investigating.
So let’s head over to Market Samurai to see how this works.
Adwords Cost Per Click (AWCPC)
Here’s my list of keyword phrases relating to photography.
The first thing I’d like to discuss is Average Adwords Cost Per Click, so let me just come up here and click this checkbox.
In order to understand what these numbers mean, we first need to take a quick look at Google Adwords.
Whenever you do a search in Google, you’ll notice that to the right of your search results, there are a collection of small advertisements.
Each of these ads has been set up by an advertiser in order to generate leads to their business.
Every time someone clicks one of these ads, the advertiser pays Google an amount of money in exchange for getting a new visitor to their website.
Global Adwords Market Is Similar to a Stock Market
Since there are a lot of advertisers bidding for the top ad positions in Google, the Adwords system becomes similar to a stock market for business leads.
Over time, as more advertisers bid for the top spots, this ‘market’ determines what each keyword phrase is actually worth.
The reason this works is because, advertisers generally want to make more money than they spend.
So if they are spending $3.00 per click in Adwords, it’s because they can, on average, obtain more than $3.00 from each visitor to their website.
Adwords Cost Per Click = Commercial Value Per Visitor
Coming back to Market Samurai, this Adwords Cost Per Click figure provides an indication of what the number 1 ranked advertiser is paying Google for each visitor who clicks on their Google ad.
Based on our stock market analogy, it is also an indication of the commercial value of each visitor as set by the global Adwords market.
Using the Default 'No Filters'
Now for the sake of this example, I've set Market Samurai's default filters to 'No Filters', which will make it easier to illistrate how commerciality works - but don't worry, you'll learn how to use this filter in an upcoming video.
Sort by Value Per Visitor
Let me start by clicking on this column heading and listing my keywords from high to low value per visitor.
Assessing Keyword Value
If you look here, you can see that the phrase ‘photography classes’ has a higher value per phrase than the phrase 'digital photography school'
Assessing Keyword Traffic
Now you may initially think that ‘photography classes’ is therefore a better keyword to target, however the important thing to note is that this figure relates to value per visitor, and here you can see that the term 'digital photography school’ delivers a higher number of visitors per day than 'photography classes’.
Therefore in order to properly assess the commerciality of these phrases, what we really need to do is multiply the SEO Traffic value by the Adwords Cost Per Click value.
If you’re finding this a little confusing, please don’t worry - The good news is that Market Samurai will do this calculation for you automatically and makes assessing the commerciality of keyword phrases extremely easy.
All I have to do is come up here and click the SEO Value checkbox.
Market Samurai then displays a new column with the heading SEOV.
How SEOV Is Calculated
These SEOV numbers are calculated by multiplying the SEO Traffic values and the Ad Words Cost Per Click values, and in doing so it provides us with a great indicator of commercial value.
Add SEOV Filter
The next thing I can do is apply an SEOV filter. To do this, I just come up here, click the plus sign and enter a value.
For this example, I’m going to use the value of $30. Why $30? Well, when SEOV is calculated using daily traffic, using a value of $30 will filter out any keyword phrases that do not have a commercial flow of at least $900/month.
Sort Data by SEOV
Let me just sort my data by SEO Value by clicking on this heading and lets take a look at two of our example keywords.
You can see here that the phrase 'digital photography school' has a higher SEOV value than the phrase 'photography classes'.
Selecting the Most Valuable Keyword to Target
If you were trying to decide which of these two keywords to target, and they had similiar relevance, traffic and competition profiles, this status suggest that you should target 'digital photography school', because it has a higher level of commerciality.
Commerciality of Your Keywords
In other words - Digital Photography School is a wide pipe, while Photography Classes is a narrow pipe.
In the Internet Mareting World there is often a lot of focus places on finding high traffic kewords, but at Noble Samurai, we'd suggest that instead of just trageting high traffic keywords you should also look to target keyword phrases with high levels of commerciality.
This is a great way to maximize on time and effort that goes into creating your online business.
So just to recap - in this video we saw that commerciality provides an indication of the monetary flow associated with different keyword phrases.
We saw that a useful way to calculate the commerciality of a phrase is to multiply it's SEO Traffic value by it's Adwords Cost Per Click value.
And finally, we saw how to quickly and easily identify high commerciality keywords using Market Samurai.
More Keyword Research Lessons
- Introduction to Keyword Research
- Golden Rule #1: How to Find Relevant Keywords
- Golden Rule #2: How to Find High Traffic Keywords
- Golden Rule #3: How to Assess Market Competition
- Golden Rule #4: How to Assess Commerciality
- Golden Rules Case Study
- How to add your Google Adwords account details into Market Samurai
- How to Signup for a Google Adwords Account
- How to Use Preset Filters