When considering PPC advertising, your Adwords Value is the amount that you would need to spend in Adwords to get a comparable amount of traffic when listed organically – for free. You have to ask yourself about the cost of your keywords – what it would be worth to get a number one listing.
How To Work Out Cost of Keywords
To determine your keyword’s adwords value, enter it in the Google Adwords tool and enter your keyword. This will give you a global and local value for the number of searches and the estimated average cost per click.
Research has shown that a number one ranking in the organic listings of Google will net that site 40% of the available traffic so, if you multiply the number of local searches by 40% you will discover the number of clicks that you are likely to get for free every month.
Take that number of clicks and multiply it by the estimated average cost per click figure and you get not only the cost of your keywords but the amount of money that you are saving each month by having your site at the top of the free listings of Google rather than paying for it to be there with a sponsored link.
This is why it is so vitally important to get the local search engine optimisation of your website right. Getting on the front page of Google can save you a fortune in paid advertising.