Why does Google Keyword Tool has high competition, but low CPC for some keywords?

Discussion in 'Google AdWords' started by dan_bezdek, Dec 25, 2010.

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  1. #1
    Hi Guys,

    I was just looking at Google Keyword tool, and I can find many keywords which have very low CPC value, but high competition keywords. For example the competition for "cheap car insurance" is showing with the competition bar almost full, but the CPC is only $0.05. This doesn't make sense to me. If competition for a keyword is high, then the prices should be much higher than $0.05. Can anyone explain this? or Google is just making up some of these numbers?

    Thanks,
    Dan
     
    dan_bezdek, Dec 25, 2010 IP
  2. Aquarezz

    Aquarezz Notable Member

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    #2
    I guess it's just because that's the average amount. It might be that some are paying $3 or more. It's also for cheap car insurance, decent car insurances might have a CPC that is way much higher for example ;)
     
    Aquarezz, Dec 25, 2010 IP
  3. dan_bezdek

    dan_bezdek Peon

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    #3
    But you also have real crappy keywords which have outragiously high CPC listed for them; if it was just about average, then those crappy keywords should have had low CPC too. There must be some reason that I can't see or that Googlee is making them up.
     
    dan_bezdek, Dec 25, 2010 IP