A good keyword tool can help you find targeted keywords with search volume, yet very little competition. These are niches that you can make money in with less effort than competitive niches.

Using the data from a keyword tool like Ad Word Analyzer, you can target and usually dominate these niches by running PPC ads and also by building search engine optimized websites.

You basically want to own as much real estate (listings) on Google and other search engines as you possibly can.

To save time and for ease of use, a keyword tool must be simple enough for anyone to use.

Well, that's certainly the case with Ad Word Analyzer…

Simply enter your primary keyword, hit Enter and you'll get the following:

1. A complete list related keyword phrases.
 
2. The number of recent searches for each keyword phrase.

3. The number of ads that exist right now on Google AdWords and MSN.

4. How much it will cost per click to be #1 on Google and the estimated daily clicks.

Within minutes you can determine whether or not you should use or ignore specific keywords!

Now this keyword data is great for PPC, but you still need more information when it comes to doing SEO for your website…

So, Ad Word Analyzer also tells you the number of websites listed on Google for each keyword. Then, it automatically calculates the exact search to results ratio by dividing the number of websites by the number of searches.

You can instantly gauge the actual supply and demand for all of your keywords by simply looking at the results/search ratio. The lower the ratio, the more likely you will be able to make money in that particular niche.

In my opinion, a keyword tool is one of the most important investments any webmaster can make…

Just don't try to cut corners and use an inferior or free keyword tool with minimal features. It's not worth the amount of lost revenue.

The Ad Word Analyzer keyword tool does much more than I've covered here. I suggest you pop over to AdWordAnalyzer.com and see why some users have called it the "Ultimate Keyword Research Tool".

Yes, you can do this.

First, and most importantly, you must understand how your ad gets to the top of the ad rankings on Google…

Instead of simply being based on how much you pay, it is based on a combination of your clickthrough rate (or how popular your ad is) and the amount you're willing to pay for each click.

Your competitor may pay more per click, but you can actually pay less and still outrank them by getting a higher clickthrough rate (CTR).

For example, let's assume your competitor has 1.0% CTR (their ad is clicked on once in 100 searches) and they're paying .49 cents a click for that keyword…

Now you may be only bidding .25 cents on the same keyword, but you have a 4.5% CTR. Well, you will likely rank higher and do so for a much more profitable price!

How cool is that?

This means if you want to succeed on more competitive terms, then you must tweak you ad until your CTR is above your competitors.

It's as simple as that.

Since your ads appear on Google almost instantly (you can also display ads on their search network and/or content network), you should monitor your campaigns throughout the day and fine tune as needed.

You also have the option of turning off search network and content network sites in Edit Campaign Settings to see if you are able to close more sales and increase your CTR. This is often the case, but you need to test this yourself to find out.

Remember, you must maintain a minimum CTR of .5% with Google’s entire network. If you fall below this for a keyword after 1,000 views by searchers, then the keyword will be disabled.

When this happens, and it probably will, don’t get discouraged. Be thankful.

These keywords often are not profitable in the first place, since they are not being searched by somebody interested in what you have to offer.

This is actually very easy to do…

In this example, I will use the keyword phrase "fishing gear" (you can use your primary keyword or just follow along for now).

Go to Google.com and do a search for "fishing gear". Then click More Sponsored Links ». Print all the pages, so you can review the ads.

Now do a Sponsored Links search for "free fishing gear" and print all the pages. Look for all the ads that are no longer displayed…

These advertisers are most likely using the negative keyword "free". Most beginners don't do this. These are the advertisers to watch.

I suggest you visit each of their websites and see what they are selling. If they offer an ecourse or newsletter, then sign up. You will also want to track their ads and ad positions on Google a minimum of once per week for a month or so.

Next do a Sponsored Links search for "free fishing abcdef" (you can use any random string of characters). Print all the pages. Ignore these advertisers. They are totally clueless and are simply wasting money.

All of the other advertisers are your real competition. Model your AdWords ads after theirs for maximum results. You will be very pleased with the results.

Lastly, rinse and repeat. Do this for all of your keywords.

I do suggest using a keyword tool to expand your keyword list and automate the process.

You might also want to check out Adwatchers.com. This tool finds profitable AdWords, Yahoo, and MSN PPC campaigns.

You should always be on the lookout for strategies to improve your results, especially if they are easy to implement…

1. Add Negative Keywords

Negative keywords should be thought of as an extension to the keywords you already have. They are words that add qualifications to those searchers who see your ad, allowing you to get rid of those who are likely a waste of your ad budget.

Let me give you an example. Probably the most common negative keyword is "free". By typing in a dash in front of free ("-free"), you prevent searchers who types in the keywords containing that word like "free information" or "free pictures".

And, if you're selling a product, these searchers are very difficult to turn into paying customers on the spot because as soon as they see a price on your page, they will hit the back button and look for a free competitor elsewhere.

When deciding whether to use the negative keyword term "free" you should consider the sales process. If you go for the sale right away (instead of just trying to get a lead), and you have competition, then it will likely increase your campaign results.

2. Add Exact Matching Keywords

These are the most stringent keywords because the only search they allow is the exact phrase you typed.

So, if the searcher typed in "Apple computers" and your exact match was "Apples", then your ad would not be shown.

To add an exact match, you just put brackets [ ] around the keyword (ie. [Apples]).

A good strategy when adding your keywords is to test which type of keyword has the best conversion rate for you. Do this by putting each term in quotes, brackets, and just the keyword alone.

You may be surprised to find that an exact match may show a 9% clickthrough, while a normal keyword might have 3% clickthrough rate for the same word.

When the keyword is just normal and without anything surrounding it, then it is called a broad match. 

When your keywords are in broad match, then your words undergo Expanded Broad Match…

Google's expanded broad match automatically ads plurals to words and identifies similar terms.

So, if your normal keyword was "apartment", then your ad might also show for the similar keyword "flat".

This is especially useful for the English language because there are many different synonyms. However, this also might cause problems for you if searchers not interested in your product often type the synonym.

For example, your keyword might be "car", and your ad also shows up for "auto", but "auto" does not convert any visitors to sales like the term "car".

You can find out likely synonyms for any keyword by using the Google Sandbox keyword tool in Ad Word Analyzer. If you find any objectionable keywords, then you can get rid of the term and just use phrase or exact match for the keyword!

If Content is King on the Internet then keywords are Queen…

Discovering just one new pocket of keywords that you hadn't thought of before can double your traffic in 10 minutes!

One of the most valuable things you can do is get a "competitive index" of various keywords…

How many people search for it? How many bidders? How many pages are there on the Internet about this topic?

Before I start a Google AdWords campaign, I take a look to find out how many bidders are bidding on my keyword…

If there's less than 10, it's going to be a day at the beach.

More than 30, we'd better sharpen our pencils.

More than 60, ONLY experienced web marketers should play.

There's an easier way to judge the competition than by clicking through Google's results and counting the ads, since that's WAY too tedious.

Ad Word Analyzer is a powerful keyword tool that does it all for you and more.

Every conceivable combination of keywords represents a market.

There's an infinite number of keyword phrases.

So, there's an infinite number of markets out there for you to tap into.

Search engine marketing is about niches…

It's not about being all things to all people, it's about being a few specific things to a few specific people.

The profit is in areas where there's a lot of need and not very many bidders.

Example:

There are 103 Google bidders on "used car".

But there are only 24 bidders on "san diego used car".

And there are only 13 bidders on "used japanese car".

It's always better to be a big fish in a little pond, especially if you're just getting started.

The narrower the niche, the more valuable the click is, and also the less that click normally costs you.

Using a keyword tool, you can gather and analyze a lot of data in a short amount of time.