However, CPC is not the only factor that tells the profitability of a keyword. There are many other factors that you should consider.
Choosing Niche Keywords
Niche keywords are the keywords that are highly searched by the web surfers, and are rarely used by your competitors. Less competition means more traffic to your website. Targeting ten niche keywords is easier and more fruitful that targeting a highly competitive keyword. Traffic from niche keywords when directed to a relevant page increases your CTR and conversion ratio.
Determining Traffic
Determining traffic for a keyword is quite important before targeting it. Along with the competition stats, it lets you make out the niches present in any industry. Besides, it lets you predict (to some extent) how much traffic you can expect if you promote a website around a particular keyword. There are two known sources for determining traffic. Overture Keyword Suggestion Tool (now a part of Yahoo Search Engine) and WordTracker. When talking about accuracy, Wordtracker monitors the queries on some meta search engines that actually render it inaccurate . Reason? There is no known stat about how much of the community you are targeting is searching on those meta search engines. However, it's a good tool to make out the niches.
In my opinion, Yahoo owned Overture gives you more accurate stats than Wordtracker. This is for the reason that Overture is a PPC engine. It can show you how many people are searching for a particular term on its vast network. A network which is bigger than any Meta Search Engine. Still, it is not that accurate, but at least better than Wordtracker. The tools that are predicting Google Searches for you are just doing guess work. No one knows the algorithm they use.
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What are High Paying Keywords?
No! High paying keywords are not the keywords that have high CPC. There are many keywords in Google Adwords system, which have a high CPC, but no Advertisers bidding on them. Relying too much on the CPC can lead you to many Fake high paying keywords. High Paying Keywords refer to those keywords on which the advertisers bid madly, and are ready to pay (more than average) per click to anybody who fetches them the target traffic. Keywords are the search phrases that belong to a specific industry. For example, "Student loan" belongs to Finance or Loan industry. Some industries are highly populated with Advertisers and competitors while others are not. And those keywords are called High Paying Keywords.
CPC (Cost Per Click)
What it is: CPC or Cost Per Click refers to the maximum amount of money that an advertiser is willing to pay per click on their ads.
Importance: Higher CPC means higher EPC (Earnings Per Click) for you.
Source: Google Adwords
Clicks per month
What it is: These are the number of clicks the highest ad gets in a month in Google Adwords System.
Importance: There are many industries that exist online that don't get much clicks on their ads. Targeting such keywords might be harmful for your Adsense income. It shows you which keywords have a larger commercial traffic. More are the number of clicks, more effective a keyword is for adsense. Also, More clicks a keyword attracts, higher CTR you can expect for that keyword.
Source: Google Adwords
Advertisers
What it is: These are the number of Advertisers bidding on the keyword. This is the most important figure that you need while choosing keywords for Adsense.
Importance: There are many keywords in Google Adwords system that have high CPC like $50+ but no advertisers bidding on them. Obviously, no one is going to pay you like $15 or $50 if there are no advertisers bidding on a keyword. Also, more are the number of advertisers, more Affiliate programs you can find in that industry too.
Source: Google Adwords
Average CPC
What it is: Average CPC is the average of what all the advertisers bidding for the given keyword.
Importance: Average CPC adds to your power of judging high paying keywords. Where other tools end up giving you average of only top 3-8 bidders, KeywordCountry gives you average of what all the advertisers are paying on a keyword. This gives you the much more and astonishing picture of high paying keywords.
Source: Google Adwords and tedious calculations.
Competition
What it is: The actual number of pages that will be competing against you on a keyword. Inanchor Intitle formula used to determine this figure is regarded as the most precise formula ever devised to measure competition.
Importance: This column lets you find many more niche keywords. Generally the number of search results returned by Search Engines are taken as the number of pages competing on a keyword. But those pages who have used or just dumped your keyword in the corner of their page are not competing against you but SE will still list them. A true competitor targeting a webpage with a certain keyword, tends to include that keyword in the title and the anchor text that links to that webpage. And these are exact number of pages that are using these keywords in their Title text and Anchor Text.
Source: Google
Google Traffic Estimates
What it is: This is the estimated traffic that a given keyword is getting on Google Search Engine.
Importance: This data is far more accurate than Overture Search Estimates or WordTracker Search Estimates. More are the number of searches, more profitable a keyword is.
Source: Google and other sources (Estimated)
Overture Traffic Estimates
What it is: This refers to the number of searches done in a month for a particular keyword, according to the Overture PPC Engine. This helps you determine the keywords that attract more traffic.
Importance: More traffic means more profits. This column prevents you from wasting your time on keywords that are rarely searched in Search Engines.
Source: Overture
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