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

[krx]

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]

could it be because of daily budgets?

 

[krx]

could it be because of daily budgets?

I'm not sure. How would that work?

 

[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.

 

[weblord]

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]

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.

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?