Picking the right keywords to target for your pay per click campaign is one of the most important elements you will have to consider. There is a fine line when it comes to choosing which keywords to use. If you use a one or two word keyword you will likely see that they get a ton of monthly searches, but they will also be very, very difficult to be competitive with. For most of the smaller online marketers the bid prices for those keywords will simply be too expensive to be profitable.
For most of us, the 'long tailed' keywords will work much better. These are actually keyword phrases that have 3 or more words in them. They can still get a great number of monthly searches (though not as high as the one or two word keywords) but they will usually have much less competition.
By using the keyword tool you will have access to a lot of helpful information. You will not only get a list of the top keyword phrases and the average number of monthly searches they get but you will also be able to find out what the average cost per click (average CPC) price will be for those keywords.
Obviously, the cost per click will just be an estimate since the popularity of the keyword is only one of the elements that determines how much you will pay for each click, but it's a place to start. You'll know right away that if you have a daily budget of $50 that a keyword with an average CPC of $10 will probably be out of your budget even though it might not really cost quite that much it's more than likely still going to be too expensive for you.
The keyword tool will also give you and idea (it's just a rough estimate, don't expect it to be exact) of the amount of competition a given keyword has. That can come in very handy when you're planning your campaigns.
Another cool thing about this keyword tool is that you can type in your base keyword and be provided with other keywords phrases that are relevant that you may not have even thought of. It's virtually impossible for us to think of all keywords associated with our niche market, so it's nice to have a keyword tool that makes suggestions to give us more ideas.
Besides the sheer volume of potential customers online the neat thing about the internet is the vast array of free tools you can use for your business. When it comes to finding good keywords the adwords keyword suggestion tool will work very well.. and it won't cost you a dime. Use these tips to get the most out of it for you.