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Often when I am using the Adwords Keyword tool I find keywords with a CPC of $0.05... I mean VERY often. Is this like base level when it comes to PPC or is this a possible error?

For example, with a few keywords I have targetted with a 0.05 CPC, I often find a PPC of 0.25 or more. Obviously, this is because my content is triggering other keywords, although it is centered around a 0.05 keyword.

I have found several keywords that have over 200,000 searches using the [exact] search parameter but have a CPC of $0.05. I plan on writing content to cover these keywords, but I am trying to figure the approximate value of these keywords.

0.05 leads me to believe there are no advertisers so IF someone were to advertise and use this keyword, it would cost them ~0.05. But since there is obviously no demand for these keywords and thus they aren't getting bids, other ads MUST be shown. How can I predict the value of ads with a CPC of $0.05?

Strange question I know, but I'm just trying to understand this a bit more.

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+50

The results from the AdWords keyword tool aren't always that predictive, especially when it comes to CPC's. To get a better picture of the value of a keyword you can run ads on it for a period of time then you'll know the real CPC and Search Volume.

However, I think that you would be better off finding a topic that you find interesting and write about it than spending time searching for 'profitable' keywords. It's probably a better long term strategy to build something of real value then work out how to profit from it. There are far too many 'made-for-adsense' sites on the internet at the moment and Google is proactive in it's efforts to deal with the issue of low quality content as it will affect their position in the long term if they don't.

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That's pretty much my thought on it. I was sad to see that many of the topics that I enjoy writing about aren't "profitable" but I find that I have stronger readership in things I've written that I care about than things I don't which then makes it more lucrative for me in the end. –  Melanie Mar 14 '11 at 4:46
    
Maybe you can also try out some of the performance based affiliate networks like CJ.com? You get paid for sales, not clicks, so you get lower conversions but much higher commissions. It could be worth a try on more useful topics because the readers might be more qualified to actaully make purchases. –  Ewan Heming Mar 15 '11 at 4:19

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