I have rounded upon a number of long-tail keywords in my niche that Google Adwords keywords tool estimates to be not more than 5 cents a click. But when I hit these search terms on Google, I see the page littered with ads..How is it possible? I mean, if the bid amount is so low, then it means there are not too many people bidding right? Or do you think the bid estimates are not very accurate?
I don't ever believe them. I've seen this before, and the only way to really know is to start and pay for it.
Remember that they are estimates. They are also to be on the first page. When you see a five-cent estimate, take it with a grain of salt. You'll notice that most often, there is no search volume (not enough data) and that is the reason for the low bid estimate, probably a default value for such cases. As for seeing ads when typing that keyword, search engines don't show ads only on the exact phrase. If I bid on the phrase "red widgets", I might still show up on your longer tailed "where to find red widgets in mytown". You are still competing against the shorter tailed keywords. Although you do have the advantage of being more precise, which should get you better click rates and thus QS, you'll have to figure your cost against all those bids for "red widgets" which, if it's a more popular term, you'll pay nearly what they are.
I believe google bid estimate is not so accurate. Use a different type of tools like market samurai will help you a lot.
No, bid estimator is not very accurate. sometime when we need particular country data, it shows the worldwide data.