PPC Keyword Analysis Guide

Pay-per-click (PPC) advertising has become an important tool for companies to gain traffic and increase conversions. The selection of PPC keywords is directly related to the effectiveness of advertising and the return on investment (ROI). Effective keywords can help ads accurately reach the target audience and ensure that the company’s ads stand out when potential customers search for relevant information.

Classification of PPC keywords

PPC keywords are specific words or phrases selected by advertisers when using pay-per-click advertising, which directly affects the exposure and conversion rate of ads. Effective keyword classification helps advertisers develop more precise advertising strategies. The following are several major keyword classification methods:

1. Based on user search intent

• Information keywords: Users want to get information, not necessarily buy immediately. For example, “How to choose sports shoes”.

• Navigational keywords: Users look for specific brands or websites. For example, “Nike official website”.

• Transactional keywords: Users are ready to buy, usually containing words such as “buy”, “price”. For example, “buy sports shoes”.

• Comparative keywords: Users want to compare different products. For example, “Nike vs. Adidas sports shoes comparison”.

2. Classification by matching method

• Broad match keywords: Attract a wider range of traffic, and ads will still be displayed when users search for similar words. For example, “sports shoes”.

• Phrase match keywords: Users search for phrases containing a specified phrase, and other words can be before and after. For example, “sports shoes purchase”.

• Exact match keywords: Users need to enter exactly the same words for the ad to be displayed. For example, “[sports shoes]”.

• Negative keywords: Exclude certain irrelevant searches to avoid wasting advertising budget. For example, “cheap”.

3. Brand Keywords

Keywords related to a specific brand, often used to increase brand awareness and loyalty. For example, “Nike sneakers”. These keywords often attract users who are already interested in the brand and have a high conversion rate.

4. Long-tail Keywords

Long-tail keywords are made up of multiple words and usually have lower search volume, but less competition and higher conversion rates. For example, “Men’s sneakers for running”. These keywords can help companies target specific user groups more accurately.

How to Conduct PPC Keyword Research

Conducting PPC keyword research is an important step in developing an effective advertising strategy. Here is a detailed project example showing how to apply these steps.

Project Background: A Sports Shoe Brand Launches a New Shoe

Let’s say we are a sports shoe brand that is preparing to launch a new shoe designed for runners, with the goal of increasing brand awareness and sales.

1. Clear Goals and Audiences

• Goals:

  • Increase online exposure for the new shoe.
  • Achieve sales target of 1,000 pairs of shoes within 3 months of launch.

• Audience:

  • Age: 18-35 years old.
  • Gender: Both men and women, but more inclined to male users.
  • Interests: running, fitness, sports.
  • Region: Mainly for urban residents, especially young people who have the habit of running.

2. Use keyword research tools

• Keyword research tools:

  • Use Google Ads Keyword Planner and enter basic words such as “sports shoes” and “running shoes”.

• Get data:

  • Hot keywords: sports shoes, running shoes, lightweight running shoes, running shoes recommendations.
  • Search volume and competition:
  • “Sports shoes” - Monthly search volume: 20,000, competition: high.
  • “Running shoes” - Monthly search volume: 15,000, competition: medium.
  • “Light running shoes” - Monthly search volume: 5,000, competition: low.

• Generate a list of candidate keywords:

  • Includes “best running shoes”, “running shoes on sale”, “light running shoes review”, etc.

3. Analyze competitors

• Competitor analysis:

  • Identify major competitors: Nike, Adidas, New Balance.

• Tool usage:

  • Use SpyFu to view competitor keywords and ad copy.

• Discover key points:

  • Competitor ad copy emphasizes “comfort” and “technological materials”.
  • Nike and Adidas have relatively high budgets for “light running shoes”.

4. Consider long-tail keywords

• Advantages of long-tail keywords:

  • Although the search volume is low, the competition is small and the conversion rate is high.

• Identify long-tail keywords:

  • “Men’s lightweight running shoes suitable for running”, “Recommended women’s running shoes”, “Best value running shoes”, etc.

• Analyze the search volume and competition of long-tail keywords:

  • Use tools to obtain data and find that the search volume of “lightweight running shoes for men suitable for running” is 1,000, and the competition is low.

5. Monitor keyword performance

• Ad placement:

  • Set an advertising budget and select “running shoes” and “lightweight running shoes” as the main keywords for placement.

• Monitor data:

  • Check keyword performance every week and use Google Ads and Analytics to analyze indicators.
  • Sample data:
    • “Men’s lightweight running shoes suitable for running”:
      • CTR: 8%
      • Conversion rate: 5%
      • Average cost per click (CPC): $0.50
    • “Sports shoes”:
      • CTR: 2%
      • Conversion rate: 1%
      • CPC: $1.00

6. Optimization and adjustment

• Optimization based on data results:

  • Transfer budget from “sports shoes” to “Men’s lightweight running shoes suitable for running” to increase its exposure.

• Adjust ad copy:

  • Based on the successful cases of competitors, highlight the features of “comfort” and “technological materials” to enhance the attractiveness of the ad.

• Add keyword testing:

  • Conduct A/B testing to test different ad copy and landing page designs to find the best combination.

• Regular review:

  • Regularly review keyword performance every month to identify which keywords are effective and which ones need to be replaced or deleted.
  • Adjust or replace poorly performing keywords and test new potential keywords.

Common PPC keyword tools

Google Ads Keyword Planner

• Function: Provides keyword suggestions, search volume, competition and other data.

• Advantage: Directly integrated with Google Ads, convenient for formulating advertising strategies.

• How ​​to use: Enter basic keywords to get relevant suggestions and detailed statistics.

Ahrefs

• Function: Provides comprehensive SEO and PPC analysis, including keyword search volume, click-through rate, CPC, etc.

• Advantage: Powerful competitor analysis function, you can view competitors' keyword strategies.

• How ​​to use: Enter keywords in the “Keyword Explorer” to view related data and trends.

SEMrush

• Function: Keyword research, competition analysis, advertising effect monitoring
• Benefits: Provides detailed advertising history data and competitor PPC activities.
• How ​​to use: Enter a keyword to view search volume, CPC, competition, and related advertising examples.

Moz Keyword Explorer

• Functions: Keyword suggestions, difficulty score, potential clicks, etc.
• Benefits: User-friendly interface, easy-to-understand keyword data.
• How ​​to use: Enter a keyword to get recommended keywords and analysis data.

SpyFu

• Function: Mainly used for competitor analysis, view the keywords and ad copy used by competitors.
• Benefit: Able to gain in-depth understanding of competitors' PPC strategies and identify industry trends.
• How ​​to use: Enter a competitor’s website to get their keywords and advertising history data.

Keyword Tool

• Function: Provides keyword suggestions for multiple platforms (such as Google, YouTube, Amazon, etc.).
• Benefit: Suitable for multi-channel marketing, obtain keyword data for different platforms.
• How ​​to use: Enter basic keywords, select the target platform, and view the list of recommended keywords.

Ubersuggest

• Functions: Keyword suggestions, search volume, competition, etc.

• Advantages: Simple interface, suitable for beginners, and provides practical keyword analysis functions.

• How ​​to use: Enter keywords, get suggestions and related data, and view competition.

Paid keyword selection

1. Choose highly relevant keywords

• Goal consistency: Make sure the selected keywords are consistent with the goal and content of the ad. For example, if your ad is about “running shoes”, avoid using keywords that are not related to “casual shoes”.

• User intent: Understand the user’s intention when searching. Choosing keywords that can meet specific needs, such as “shoes suitable for long-distance running” or “running shoes discount”, can attract more interested users.

2. Consider keyword competitiveness and search volume

• Competition: Evaluate the competition of keywords. Although high-search volume keywords may attract more traffic, they also mean higher competition and costs. You can choose keywords with medium competition to reduce CPC (cost per click).
• Search volume: Pay attention to the monthly search volume of keywords and ensure that the selected keywords have sufficient search volume to attract potential customers.

3. Analyze the click-through rate (CTR) and conversion rate of keywords

• Click-through rate (CTR): CTR refers to the ratio of users who click on the ad to users who see the ad. A high CTR means that the ad content is highly relevant to the user’s search intent. CTR can be improved by optimizing ad copy and keyword matching methods.

• Conversion rate: Conversion rate refers to the ratio of users who complete the target behavior (such as purchase, registration, etc.) after clicking on the ad. A high conversion rate means that the ad not only attracts clicks, but also achieves marketing goals. By analyzing conversion rate data, identify keywords that perform well and optimize advertising delivery strategies.

4. Use negative keywords

• The role of negative keywords: Negative keywords refer to keywords that you want to exclude. By setting negative keywords, you can avoid ads from being displayed in irrelevant search results, thereby improving the accuracy of ads.

• Optimize advertising spending: Regularly review search query reports, identify sources of invalid clicks and add corresponding negative keywords to help save advertising budgets and increase ROI.

5. Conduct A/B testing

• Test different keywords: A/B test different keyword combinations and analyze their performance. You can test different keywords, ad copy, or landing page design to find the best combination.

• Continuous optimization: Based on the test results, continuously adjust the keyword strategy. Identify which keywords are performing well and which need to be optimized or replaced to ensure that the ads continue to achieve the best results.

6. Regularly review and update keywords

• Monitor performance: Use tools such as Google Ads to regularly monitor keyword performance, view data such as CTR, conversion rate, and CPC, and evaluate keyword performance.

• Market dynamics: Update the keyword list in a timely manner based on market changes and changes in consumer behavior. Regularly reviewing and adjusting keywords can ensure that the ads are always consistent with the needs of the target audience.

FAQ

What is PPC keyword analysis?

PPC keyword analysis is the process of evaluating and optimizing keywords used in paid search ads. This includes selecting suitable keywords, analyzing their performance (such as click-through rate and conversion rate), and constantly adjusting and optimizing to improve advertising results.

How to choose effective PPC keywords?

Choosing effective PPC keywords can be achieved by analyzing user search intent, considering keyword competition and search volume, and using relevant tools (such as Google Ads Keyword Planner). At the same time, it is also important to monitor keyword performance regularly.

What is the click-through rate (CTR) of keywords?

Click-through rate (CTR) refers to the ratio of the number of users who click on an ad to the total number of users who see the ad. A high CTR usually indicates that the keyword and the ad content are highly relevant and can effectively attract the user’s attention.

What is the conversion rate?

The conversion rate refers to the proportion of users who complete a specific goal (such as purchase, registration, etc.) after clicking on an ad. The conversion rate reflects the effectiveness of the ad and the interest of the target audience, and is usually used to measure the success of the ad.

How to optimize my PPC keywords?

Optimizing PPC keywords can be achieved by selecting highly relevant keywords, using negative keywords to exclude irrelevant searches, conducting A/B tests regularly, and adjusting the matching type of keywords (such as broad match, phrase match, etc.).

What tools should I use for PPC keyword analysis?

Commonly used tools include Google Ads Keyword Planner, SEMrush, Ahrefs, SpyFu, etc. These tools can help you discover new keywords, analyze competitors, and evaluate keyword performance.

What are negative keywords and why should you use them?

Negative keywords refer to keywords that you want to exclude. By setting negative keywords, you can avoid ads from being displayed in irrelevant search results, thereby improving the accuracy of ads and saving advertising budgets.

How do I track my PPC keyword performance?

You can use Google Ads and other analysis tools to track keyword performance, monitor key indicators (such as CTR, conversion rate, CPC, etc.), and adjust and optimize based on the data.

How should the budget for paid keywords be set?

When setting a budget for paid keywords, you can consider factors such as target cost, industry competition level, and expected conversion rate. It is recommended to start with a small budget and gradually adjust after observing the results.