After I had tried several things to pick out good performing keywords, I wrote down this process that should yield profitable, low competition keywords for your Adsense ads. This process is not perfect, but when you analyze it and try it for yourself, you can see that it makes sense. Adsense that is.



Step 1

Research some keywords for your niche that have a high CPC value. To do this, first find your keywords using the Google Adwords keyword tool or another tool that will give you niche specific lists of keywords. Save those keywords into a spreadsheet program as a csv file. Copy and paste those keywords into Google's Traffic Estimator (you will need an Adwords account). The traffic estimator will give you the estimated clicks per day and the average cost per click (CPC) for each keyword. Copy and paste this information back into your spreadsheet file for later reference.

Step 2

Multiply the average CPC by 30% to get an estimate of your maximum earnings per click. The higher the average CPC, the more likely the CPC for the 2nd - 8th positions are high as well. You want this higher average CPC to start because if the CPC starts to drop off significantly after the 3rd position, your chance of getting high click earnings as an Adsense publisher will be diminished.

Step 3

I use a tool called Adword Accelerator to help with estimating the 1st - 8th position CPC values. This tool will estimate the CPCs for each position and allow you to see how much the CPCs drop off after the first position. This dramatically helps your analysis for picking the most profitable keywords. If the CPC values stay close to the each other and to the value of the first position, then you will more than likely have a profitable keyword.

Step 4

Now determine which Adsense ads occupy which positions. You can do this by searching on Google for your keyword and looking to see which Adsense ads are generated in the search results and in which order they are. Another way to estimate this is to use the Adword Accelerator tool. It has a feature whereby Adwords ads are dynamically displayed for a given keyword you input into the tool to check. If the Adwords advertiser has used "Adwords for Content" in his advertising, these ads will be the Adsense ads someone else is displaying on their website.

Step 5

Compare the ads you found in step 4 to the results of using the keyword check function at the website http://www.adsensecheck.com. If the advertisers you find by doing this closely match those you found in step 4, you will more than likely have a profitable keyword.

If the advertisers are not he same, then the advertiser is possibly not using the "Adwords for Content" mode of advertising in his campaigns. This means that the keyword may not be the basis for the Adsense ads and may not be profitable.

Step 6

Now you must get the traffic. If you decide to get traffic using the Adwords approach, then just use the keywords in your Adsense ads that scored well from the above evaluation. Then, use lower cost per click keywords in your Adwords ads. The difference between the earnings from the click you get on your Adsense word from the cost of the click you pay on your Adwords word will be your profit.

If you are planning to use search engine optimization techniques to get traffic to the website where your ads are, make sure the keywords you choose have the highest KEI possible. KEI is the ratio of the number of searches for a keyword to the number of competing sites having the keyword. The combination of a high KEI and a high score from the above evaluation will yield the best profit results.