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SEMrush Blog

Adwords Keyword Competition: How to Use Keyword Competition Tool

SEMrush Blog
Adwords Keyword Competition: How to Use Keyword Competition Tool

Fish Where the Fish Are!

One question that I get by the novice SEO a lot is: what is competition in Google’s Adwords Keywords tool? For starters, the Google Adwords Keywords tool is provided by Google in order to help Adwords customers buy the keywords they want.

Okay, so once you have entered a seed keyword in the Adwords keyword generator, you will get a bunch of terms that will be directly related or have something to do with the term you have just fed in the Google Adwords Keyword generator.

What is Adwords Keywords Competition Tool?

Competition refers to the amount of Google Adwords customers competing for a particular keyword. To get the most out of Google’s Adwords keywords competition tool, you should target thousands of low competition keywords. Ignore the really expensive keywords, and go after the long tail low competition keywords. This way, you will get much more targeted traffic, and you’ll probably get much cheaper prices per click.

How a Keyword Competition Tool Can Help You:

If you are looking to succeed with Google’s Adwords tool, you must know your keywords, and you must also know not just the competitiveness of those keywords but also the relative search volume and search value. A keyword competition tool does just that. By pulling up a list of related keywords and key phrases, the keyword competition tool is able to provide useful information that helps the SEO search for the high paying low competition keywords.

Keyword Bidding:

After you have selected a keyword, you can choose how much you are willing to pay whenever a customer searches through that keyword and clicks on your ad by using keyword bidding. This is your keyword's maximum cost-per-click, or max CPC, bid amount. Most advertisers maintain control on their ads by bidding manually, while others are more comfortable letting the Adwords system make the bids for them.

Where Does the Bid Simulator Come In?

To explain the keyword bidding process further, have you ever wondered how many impressions or clicks you could have received if you had used a different maximum cost-per-click bid? The bid simulator, launched by Google, is a feature of the Adwords interface that allows you to see the potential impact of your bid on your advertising results. While it can't predict the future, the bid simulator allows you to look at what could have happened if you had set alternate or different keyword-level bids.

By using data from the past week, the bid simulator can re-calculate the number of impressions for which your ad could have shown, had you chose a different maximum CPC. It also shows how many clicks your ad could have gotten for those impressions and how much those clicks could have cost. The feature provides increased transparency into the Adwords auction and gives the user the insight to make more informed keyword bidding decisions to meet their goals

Little Things to Keep in Mind:

While using the keyword competition tool, these are a few things to keep in mind.


Is the keyword relevant to your buyer’s persona or the target market? And is it going to allow people to find you in the right stage of the buying process? These are two questions that are very important, if you're a location based business. It might be a good idea to also add your city’s name before or after your service type, i.e.: motor fans [city name]. This will allow you to be relevant to a local audience.


You want to make sure that you put time and resources towards a keyword generator that will pick out the keywords that will yield results. If you look at the keyword competition tool and a keyword is not searched often or doesn't come up too often, you may want to move on to other keywords, but always go for the low competition keywords. That being said, in order for you to generate traffic from keywords by using a keyword generator, the keyword needs to be searched, but if there is a high search volume then most times you should look towards the low competition keywords.

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