Alright so I'm about to get started in AdWords but I have a situation I need an answer for: I see soooo many keywords that have only 25-50 competitors in terms of Sponsored Ads and are getting 5,000+ searches a month. Yet on the Google Keyword Tool, these keywords have a highly-shaded competitor bar. Can someone please explain what factors are used to determine whether a keyword has a competition level?
use avg cpc from the traffic estimator as a competition guide if avg cpc is $5 then competition is fierce with lots of money to burn... if avg cpc is low under $1 then competition is low and there are not many bidding wars over position