Why are # PPC ads so important?

[sky]

One of the domain stat services I use shows the number of pay-per-click ads available and treats it like one of the more important statistics regarding a keyword's value.

I would think it is important to an extent, as long as there are at least *some*. What is so significant and valuable about a high number of PPC ads for a keyword? What makes that more significant than other qualities of a domain's stats?

 

[goodkarmaco]

If I own cats.com I would have armies of advertisers wanting to have a ad on my domain name. That makes my domain powerful and a revenue producer. If I owned kityhouse not so much.

 

[sky]

If I own cats.com I would have armies of advertisers wanting to have a ad on my domain name. That makes my domain powerful and a revenue producer. If I owned kityhouse not so much.

So you're saying it's an indication of the domain name's strength.

But beyond let' say 10 advertisers, why are more important?
Does that give the user more variety and interesting things to
come back and click on?

I would think that exact keyword lookups per month would be
as good an indication of the value of the domain. Or maybe
you have to take both together?

The number of people typing in the keyword and how many advertisers
are fighting for over the keyword?

 

[werty]

Maybe it is a measurement for the amount of competition for the keywords that make up that domain name. The amount of Competition increases the bids and cost per click. Also these types of domains are better for parking and adsense, especially if there are people bidding on those keywords that make up your name.

 

[sky]

Maybe it is a measurement for the amount of competition for the keywords that make up that domain name. The amount of Competition increases the bids and cost per click. Also these types of domains are better for parking and adsense, especially if there are people bidding on those keywords that make up your name.

What makes the multiple advertisers better for parking? The appearance of 'variety' in the ad box for the end user? Makes the page seem less static, and give them a better selection? I hadn't thought about that before, but that would make sense to me.

But wouldn't that be also reflected in the max bid? A high max bid implies competition, otherwise there wouldn't be a need to bid the ad so high, and further, it suggests a item that in and of itself commands high $. For example, if a max bid of $4.00 for something, that is a LOT of AdWord payout by the company. They must have an expensive product and deep pockets to do that.

 

[Spade]

Several issues.

1st - The more advertisers for that keyword, the more potential end-users exist. Instead of PPC, they can simply develop your Domain and recieve organic traffic.

2nd - The more Advertisers for a term, the higher the $ per click. (assuming no price fixing by the SEs) If one person is advertising for a term - they could pay $.01 if 10 people want to advertise that term, the top bid could be very high (this sending Parking revenue high with it).

 

[sky]

Several issues.

1st - The more advertisers for that keyword, the more potential end-users exist. Instead of PPC, they can simply develop your Domain and recieve organic traffic.

2nd - The more Advertisers for a term, the higher the $ per click. (assuming no price fixing by the SEs) If one person is advertising for a term - they could pay $.01 if 10 people want to advertise that term, the top bid could be very high (this sending Parking revenue high with it).

So there is a linear-relationship between max ad. bid and number of ppc ads, I'm assuming. Since Google ad words research and estibot list both the maximum bid price, that could be a good gauge too. But I suppose a high bid price could also imply other things... for example, a few competitors bidding each other up for prominence in the search results in an area not necessarily so popular, but where the customer base that exists is extremely important for the advertisers to win over to their product.

I guess I see now why # ppc ads taken together with max bid is very telling about the situation.

 

[werty]

Exactly Sky. More Advertisers mean higher PPC Bids because they are fighting between themselves for the top ad positions. This means a higher potential for developing click revenue. But this could also mean that the keyword/s is valuable. If they are fighting for a certain keyword/s that means that people actually search for that actual keyword/s on search engines. And this adds value to that name you are holding. TIP Sky: If you want to sell that name, there you can see some of the potential end users to consider! Contact the people paying for those keywords! More targeted than that it can't get. Hope this helps.