Depending on the industry, the cost of keywords can be high or low. Using an effective strategy can help reduce costs while boosting conversions.

One of the most important factors in determining cost is popularity of the keyword. A keyword’s popularity is based on its search volume. A higher search volume can mean higher brand visibility and conversions. A low search volume can mean less conversions.

A keyword’s competition is also a factor in cost. Keywords with higher competition are generally more expensive. The higher the competition, the more advertisers bid for the keyword.

A keyword’s quality score is another factor that affects cost. A higher quality score will result in a lower cost per click. A quality score is based on relevancy of the ad to the keyword and expected click through rate. The higher the quality score, the higher the ad will rank.

Another factor that affects the cost of keywords is network choice. Google has two main networks, the Search Network and the Display Network. Both networks target users who are likely to purchase a product or service. However, the Search Network is more expensive than the Display Network.

Google’s Keyword Planner is a tool designed to help customers conduct keyword research. It estimates the average monthly search volume and cost per click for keywords. This information can be used to determine which keywords are most profitable for a campaign.

A keyword’s location is also important. Choosing a location will help narrow down your target audience.