Why Doesn't "Advertiser Competition" and Google Sponsored Links Match?

krx · 12-08-2008, 12:21 PM

I use the number of Google sponsored links shown on the search results page as one of several indicators of a domain's value. I also use the amount of advertiser competition for the exact keyword phrase as shown on Google's "keyword tool external". I'm just noticing however - and surprised to see - that there is no correlation between the two figures. For example, some keyword phrases with over 50 sponsored links (on Google search results) have 0 advertiser competition (on keyword tool). And some phrases with over 50% competition (on keyword tool) have no sponsored links (on search page).

Shouldn't these two figures be more strongly correlated? Aren't they basically measures of the same thing - ie, how many advertisers are bidding on the phrase?

shockie · 12-08-2008, 05:15 PM

could it be because of daily budgets?

krx · 12-08-2008, 06:42 PM

Originally Posted by shockie

could it be because of daily budgets?

I'm not sure. How would that work?

shockie · 12-08-2008, 06:45 PM

if everyone is bidding $100 on keyword1, but only have $100 to spend each day, then competition could be considered "high" even though there won't be as many sponsored listings.

weblord · 12-08-2008, 06:51 PM

Advertiser Competition -- the number of advertisers bidding on the same keyword.

Sponsored Links - the ones that made it to the top hence they got the position.

krx · 12-08-2008, 06:59 PM

Originally Posted by shockie

if everyone is bidding $100 on keyword1, but only have $100 to spend each day, then competition could be considered "high" even though there won't be as many sponsored listings.

I don't think that's it.. For example, "common allergies" shows 80% ad comp but no sponsored links. How can the ad comp be at 80% (relative to all keywords/phrases being bid on - ie, that's A LOT) and there be no sponsored links? That doesn't make sense, does it? Especially given that top CPC for this one is $1.30.
????: NamePros.com http://www.namepros.com/domain-name-discussion/540704-why-doesnt-advertiser-competition-google-sponsored.html

Also, "eco friendly baby" has 0% ad comp (meaning nobody bidding on it) but shows 84 sponsored links. Would n't there have to be a fair bit of ad comp to generate 84 spon links?

12-08-2008, 12:21 PM	THREAD STARTER #1 (permalink)
krx Senior Member Join Date: Oct 2007 Location: Chicago Posts: 1,569	Why Doesn't "Advertiser Competition" and Google Sponsored Links Match? I use the number of Google sponsored links shown on the search results page as one of several indicators of a domain's value. I also use the amount of advertiser competition for the exact keyword phrase as shown on Google's "keyword tool external". I'm just noticing however - and surprised to see - that there is no correlation between the two figures. For example, some keyword phrases with over 50 sponsored links (on Google search results) have 0 advertiser competition (on keyword tool). And some phrases with over 50% competition (on keyword tool) have no sponsored links (on search page). Shouldn't these two figures be more strongly correlated? Aren't they basically measures of the same thing - ie, how many advertisers are bidding on the phrase? Last edited by krx; 12-08-2008 at 06:41 PM.

12-08-2008, 05:15 PM	#2 (permalink)
shockie Senior Member Join Date: Dec 2006 Posts: 4,702	could it be because of daily budgets? __________________ - shockie

12-08-2008, 06:45 PM	#4 (permalink)
shockie Senior Member Join Date: Dec 2006 Posts: 4,702	if everyone is bidding $100 on keyword1, but only have $100 to spend each day, then competition could be considered "high" even though there won't be as many sponsored listings. __________________ - shockie

12-08-2008, 06:51 PM	#5 (permalink)
weblord NamePros Legend Join Date: Dec 2005 Location: Philippines - www.Nabaza.com Posts: 19,784	Advertiser Competition -- the number of advertisers bidding on the same keyword. Sponsored Links - the ones that made it to the top hence they got the position. __________________ Nabaza.com - Amaia

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