Golden Rule #4: How to Assess Commerciality

Video Transcript

In this lesson we’ll be taking a look at the fourth Golden Rule of Keyword Research which is Commerciality. If you happen to break this rule you run the risk of missing out on the most profitable keywords in your niche.

This video covers:

Understanding Commerciality

Commerciality is a measure of the potential profitability of a keyword phrase.

A good way to understand this concept is to imagine that each keyword phrase is like a pipe that has a certain amount of monetary flow that you would like to tap into.

A high commerciality keyword is like a wide pipe that has a strong monetary flow. If you successfully tap into a high commerciality keyword, you have the potential to generate a large amount of profits.

A low commerciality keyword on the other hand is like a narrow pipe that has a weak monetary flow. If you happen to tap into a low commerciality keyword, you will most likely only generate a small amount of profits.

Why Commerciality Is So Important

Here’s why the concept of commerciality is SO important.

Imagine that after setting up your website, you do some keyword research and find a keyword phrase that passes the first three Golden Rules.

(1) It is relevant to your site
(2) It has high levels of traffic
(3) It has an acceptable level of competition

You then optimize your website for this phrase and manage to obtain the Number 1 spot in Google.

As a result, your website attracts a large number of visitors each day.

The only problem is that no one seems to be interested in buying anything.

One reason for this is that you may have unintentionally targeted a phrase that has a low level of commerciality.

Before you select a phrase to target in your online business, it is therefore very important to check the commerciality of the keywords you are investigating.

So let’s head over to Market Samurai to see how this works.

Adwords Cost Per Click (AWCPC)

Here’s my list of keyword phrases relating to photography.

The first thing I’d like to discuss is Average Adwords Cost Per Click, so let me just come up here and click this checkbox.

In order to understand what these numbers mean, we first need to take a quick look at Google Adwords.

Google Adwords

Whenever you do a search in Google, you’ll notice that to the right of your search results, there are a collection of small advertisements.

Each of these ads has been set up by an advertiser in order to generate leads to their business.

Every time someone clicks one of these ads, the advertiser pays Google an amount of money in exchange for getting a new visitor to their website.

Global Adwords Market Is Similar to a Stock Market

Since there are a lot of advertisers bidding for the top ad positions in Google, the Adwords system becomes similar to a stock market for business leads.

Over time, as more advertisers bid for the top spots, this ‘market’ determines what each keyword phrase is actually worth.

The reason this works is because, advertisers generally want to make more money than they spend.

So if they are spending $3.00 per click in Adwords, it’s because they can, on average, obtain more than $3.00 from each visitor to their website.

Adwords Cost Per Click = Commercial Value Per Visitor

Coming back to Market Samurai, this Adwords Cost Per Click figure provides an indication of what the number 1 ranked advertiser is paying Google for each visitor who clicks on their Google ad.

Based on our stock market analogy, it is also an indication of the commercial value of each visitor as set by the global Adwords market.

Using the Default 'No Filters'

Now for the sake of this example, I've set Market Samurai's default filters to 'No Filters', which will make it easier to illistrate how commerciality works - but don't worry, you'll learn how to use this filter in an upcoming video.

Sort by Value Per Visitor

Let me start by clicking on this column heading and listing my keywords from high to low value per visitor.

Assessing Keyword Value

If you look here, you can see that the phrase ‘photography classes’ has a higher value per phrase than the phrase 'digital photography school'

Assessing Keyword Traffic

Now you may initially think that ‘photography classes’ is therefore a better keyword to target, however the important thing to note is that this figure relates to value per visitor, and here you can see that the term 'digital photography school’ delivers a higher number of visitors per day than 'photography classes’.

Therefore in order to properly assess the commerciality of these phrases, what we really need to do is multiply the SEO Traffic value by the Adwords Cost Per Click value.

SEO Value

If you’re finding this a little confusing, please don’t worry - The good news is that Market Samurai will do this calculation for you automatically and makes assessing the commerciality of keyword phrases extremely easy.

All I have to do is come up here and click the SEO Value checkbox.

Market Samurai then displays a new column with the heading SEOV.

How SEOV Is Calculated

These SEOV numbers are calculated by multiplying the SEO Traffic values and the Ad Words Cost Per Click values, and in doing so it provides us with a great indicator of commercial value.

Add SEOV Filter

The next thing I can do is apply an SEOV filter. To do this, I just come up here, click the plus sign and enter a value.

For this example, I’m going to use the value of $30. Why $30? Well, when SEOV is calculated using daily traffic, using a value of $30 will filter out any keyword phrases that do not have a commercial flow of at least $900/month.

Sort Data by SEOV

Let me just sort my data by SEO Value by clicking on this heading and lets take a look at two of our example keywords.

Compare Results

You can see here that the phrase 'digital photography school' has a higher SEOV value than the phrase 'photography classes'.

Selecting the Most Valuable Keyword to Target

If you were trying to decide which of these two keywords to target, and they had similiar relevance, traffic and competition profiles, this status suggest that you should target 'digital photography school', because it has a higher level of commerciality.

Commerciality of Your Keywords

In other words - Digital Photography School is a wide pipe, while Photography Classes is a narrow pipe.

In the Internet Mareting World there is often a lot of focus places on finding high traffic kewords, but at Noble Samurai, we'd suggest that instead of just trageting high traffic keywords you should also look to target keyword phrases with high levels of commerciality.

This is a great way to maximize on time and effort that goes into creating your online business.

Summary

So just to recap - in this video we saw that commerciality provides an indication of the monetary flow associated with different keyword phrases.

We saw that a useful way to calculate the commerciality of a phrase is to multiply it's SEO Traffic value by it's Adwords Cost Per Click value.

And finally, we saw how to quickly and easily identify high commerciality keywords using Market Samurai.

59 Responses to "Golden Rule #4: How to Assess Commerciality"

  1. Tony Says:
    November 21st, 2009 at 4:44 am

    THANK YOU for providing this tutorial. Very informative as always!

  2. Scott Says:
    November 21st, 2009 at 5:12 am

    Another brilliant video! This really puts SEOV into perspective. Thanks again!

  3. Don Says:
    November 21st, 2009 at 5:46 am

    You are creating one of the most professional video series I've ever seen in how to both understand and implement a marketing tool. Plus, you give us a complete printable download for reference. Thank you!

  4. Ken Says:
    November 21st, 2009 at 6:04 am

    I'm gonna do this ASAP.

  5. Edhoyz Says:
    November 21st, 2009 at 6:24 am

    Very interesting sir. Thanks for this information.
    Product Reviews

  6. Erwin Powell Says:
    November 21st, 2009 at 6:38 am

    WOW!!!

  7. Renee Benzaim Says:
    November 21st, 2009 at 6:57 am

    This is very good information to have. I ran my last main theme keyword through this routine and found out I had, indeed, inadvertently picked the best keyword using the previous steps. Thank you, Dr. Fernando! I look forward to the rest of the lessons.

  8. Joseph Ponnou Says:
    November 21st, 2009 at 6:58 am

    Hmm, that surely explains a very vital and missing factor for me. Thanks a lot.

  9. Bob Says:
    November 21st, 2009 at 10:23 am

    This is fantastic. I'm learning so much about MS from these tutorials. Thanks! Keep them coming.

  10. Susie Says:
    November 21st, 2009 at 1:13 pm

    What is the minimum AWT you recommend?

  11. christine Says:
    November 21st, 2009 at 1:41 pm

    Anthony

    thanks for the great video! This really helps to get the most out of Market Samurai to understand markets better - before putting a site up.

    Thanks

    Christine

  12. Andee Sellman, One Sherpa Says:
    November 21st, 2009 at 1:46 pm

    Thanks Anthony
    In the end the dollars and cents always need to add up and this particular training video gets to that quickly. I've been using MS for about two months and never used this part of it yet.

  13. Ben Says:
    November 21st, 2009 at 2:49 pm

    Great Stuff! Keep them Coming!!!

  14. Julie Chrisler Says:
    November 21st, 2009 at 3:22 pm

    This is a fantastic video! I finally understand SEOV! Thank you so very much.

    Julie

  15. Sigit Says:
    November 21st, 2009 at 3:25 pm

    Wow ... no words can describe the greatness of this Market samurai tools, especially discussion on How to find high-value commercial keywords in a niche.
    Mr.Anthony very clear and a portrait of how to choose and get it seen in the video tutorials as the winner is the "dog training shock collar" this phrase provides $ 526 dollars of commercial value to the number 1 ranked site in Google each and every day, but "dog training tips" just only provides a commercial value of $ 74 dollars a day.

    so for me this explanation is very, very useful and very easy to do later on in selecting and finding high-value commercial keywords.

    "this is more a spirit I raise money to buy this Market Samurai tools to support my business internet marketing"

    Very thank you mr.Anthony

    http://www.email-marketing-tools.net/

  16. Mike Says:
    November 22nd, 2009 at 2:02 am

    How awesome is that! Thank you so much for this insight! I am guilty of targetting high-traffic-no-value keywords. Until I watched this video, I was not even aware of this fact.

    Best regards,
    Mike
    Zelbel Photography

  17. Calum Nairn Says:
    November 22nd, 2009 at 5:39 am

    The new training modules are a fantastic help thank you.

  18. Tony Manning-Stanley Says:
    November 23rd, 2009 at 11:45 am

    Once again a very descriptive example of how to avoid wasted time and effort targeting low value keywords. Market Samurai is the only tool I have come across that targets the correct keywords for SEO, monetisation and content, and even ad copy. What an awesome product!

  19. Emmanuel Mba Says:
    November 23rd, 2009 at 12:03 pm

    Found the video very informative and direct to the point. These are excellent tools to use. Thanks

  20. Eric Chua Says:
    November 23rd, 2009 at 6:54 pm

    I have to say it is a wise decision to purchase Market Samurai tool. Thank you to Mr.Anthony & The Noble Samurai Team

  21. Joan Says:
    November 23rd, 2009 at 7:14 pm

    Thanks, these tutorials are well timed to keep you on track and building. Market Samurai is an awesome product.
    Dojo Anthony thank you from
    http://www.blogbizbuzz.com

  22. Peru Lodging Says:
    November 24th, 2009 at 1:00 pm

    I have a question.

    is the CPC written in google equal to click pay on adsense?

    thanks

  23. Detlev Says:
    November 26th, 2009 at 5:42 am

    Thank you Anthony,

    Commercial value is a great factor - an eye opener. Good to have it in MS. And it is very well explained in this training video.

    Jolly good job :)

    I am happy to get more training so I can use MS better!!

    Detlev (Germany)

  24. Ian Carter Says:
    November 28th, 2009 at 10:24 am

    This really is excellent training material. You explain things so well.

  25. Ricardo Says:
    December 6th, 2009 at 5:41 am

    Priceless...the tutorial today was of tremendous value. I hope everone who watched it and is thinking about starting their own online business (be it sell their own merchandize or be an affiliate marketer) takes heed to the tutorial.

    Many wasted hours and energy can be saved if you include a commerciality filter and guideline to your keyword research.

    Great advise!

    Ricardo
    http://WinningTheAffiliateGame.com

  26. George Says:
    December 8th, 2009 at 7:47 am

    If SEO Value is CPC * SEO visitors doesn't that mean it would be a CTR of 100% which is unplausible?

  27. Peter Says:
    December 17th, 2009 at 9:34 pm

    SEOV vs AWV in assessing commerciality (?).
    Anthony - thanks for that explanation. Could you expand in your explanation about the use of AWV vs SEOV to assess commercialiality (some keywords have high seov and low awv, and vice-versa). Well done, your tutorials are extremely good! Peter

  28. Khairul Azan Says:
    December 18th, 2009 at 11:47 pm

    What about the untapped niche?
    This video how to calculate the commerciality based on the adwords PPC ads. But what about the niche that have potential but no one yet has found it to be commercial and it has value. I see this because when I search with another language like Indonesian I found that there is more keyword that has potential but no one advertise on that keyword.

  29. sha Says:
    December 29th, 2009 at 1:19 am

    hmmm. but is commercialization really impt? it seeems to determine using adwords. there are terms whereby much ppl dont use adwords and yet they make money.

  30. Imogen Caterer Says:
    December 31st, 2009 at 7:15 am

    Thanks for a really excellent training and an amazing bit of software. I think I've found a keyword to revolutionize my business.

    Much appreciated.

  31. John E. Says:
    January 1st, 2010 at 2:54 am

    This was great. I am learning how to be successful in this new world, and really do something of value.

  32. Rasul Says:
    March 23rd, 2010 at 3:21 pm

    Wow...that's all I have to say...WOW! Market Samurai totally Rocks. It's taking one of the foundational and critical aspects of internet marketing and making it actually "easy". This is the first thing I've found in internet marketing that wasn't complicated. Thanks.

  33. Kerry Says:
    April 23rd, 2010 at 7:42 pm

    market samurai just keeps giving! I use it almost daily and am still learning more and more about its great uses. I'm just in the process of going back over all the videos from the beginning and seeing all the stuff I missed the first time around! Thanks for all the great work,
    kerry

  34. Sandy Reed Says:
    June 26th, 2010 at 6:17 am

    Interestingly, my one keyword that remained after applying the Competition filter of 30000 to the keywords "home remodeling" did not have a key icon next to it. What does that mean?

  35. KarenG Says:
    July 3rd, 2010 at 11:19 am

    Wow and to think I've had this tool sitting on my desk top for nearly two years and never really looked at it our understood it. For any newbies this a must have !!!

  36. john kay Says:
    August 16th, 2010 at 4:15 am

    Just one word. Awesome!!! and thanks for this gift of knowledge!

  37. Xavier Says:
    September 22nd, 2010 at 1:00 am

    Toujours aussi interessant

  38. James Samuel Says:
    November 6th, 2010 at 3:15 pm

    Guy's theses nobel Samuria Traing Video are a just wonderful,they
    make things that are complicated so much easier to understand.

    !THANK

  39. Jose D Says:
    November 7th, 2010 at 11:37 am

    Excellent tutorials. Please provide answers to the question being asked to enhance the quality even more. Thanks.

  40. Jordan Krizman Says:
    April 13th, 2011 at 6:03 am

    now I finally understand those features!

  41. Gisele Says:
    October 4th, 2011 at 7:22 am

    Your trainning is just amazing ! The best money expending for all Samurai buyers. Thanks so much.

  42. janet p Says:
    October 15th, 2011 at 12:06 am

    I don\'t quite follow the order in which you have selected the steps in your methodology. I would have thought that you put step 4 \"commerciality\" before competion to prioritise which keywords to do the competition analysis on. What I am missing?

  43. Mike Says:
    February 8th, 2012 at 5:25 am

    Commercial Intent: What about the OCI check box? Does this feature still work in your software. I have seen this elseware and it no longer works. My understanding is that OCI measures Buyer intent to purchase. Your thoughts.

  44. Dr. Anthony Says:
    February 9th, 2012 at 3:15 pm

    Hi Mike,

    OCI has been removed as the Microsoft service that provided this data was very unreliable.

  45. juan Says:
    February 15th, 2012 at 10:07 am

    In the point of view of a webmaster, whtas does the AWV and the SEOV means?

    I know that these are values for the keyword for the advertiser, but for me as a web master, how could I use them?

    thanks

  46. Dawne Says:
    February 22nd, 2012 at 5:47 am

    This video is confusing as the new dashboard has a different way of analysing the AdWords value, where can I get more up to date information, thanks

  47. kenneth Says:
    March 24th, 2012 at 6:27 am

    Great content! Market Samurai is an awesome product. I'm happy to tell my audience about such a great product.

    Ken
    http://www.learntodobusiness.com

  48. Nick Says:
    March 27th, 2012 at 1:08 am

    For some reason my SEOC and AWCPC do not show anything, is there a reason for this?

  49. Dr. Anthony Says:
    March 29th, 2012 at 9:21 am

    @Nick

    Can you please try clicking 'Analyze Keywords'. SEOC and AWCPC data does not come back when the keywords are initially generated.

    If you still don't get any data back, I'll need you to submit a support ticket: http://support.noblesamurai.com/anonymous_requests/new

  50. Brendan Hall Says:
    May 17th, 2012 at 8:35 am

    Thanks for this tutorial. I have used this software to get my site:

    http://jazzguitarlegend.com

    To number 12 in google. I am now working out how to go to the top. The seo competition module has provided me with all the information I need to reach goal.

  51. Joel Greenberg Says:
    May 19th, 2012 at 1:49 am

    I'm trying to understand the value of SEOV. Seems to me, by multiplying traffic by cost per click, you've come up with the commercial value of that keyword to Google, not to me as the advertiser.

    Is that your intent, to use the commercial value of keyword to Google as a proxy of the value to me?

  52. Dr. Anthony Says:
    May 22nd, 2012 at 9:36 am

    @Joel Greenberg - Market Samurai is not intended as a tool for advertisers. We are trying to give an idea of the value of dominating this niche from an organic ranking standpoint, so you know the level of resources you may want to devote to the effort. This isn't a tool for cost-per-click advertising so we aren't displaying numbers which will help that.

  53. nandan garg Says:
    November 2nd, 2012 at 9:30 am

    In my trail version of market samurai, My internet is unable to fetch the AWCPC and SEOV, and rest of the things are perfectly going, please help me ,how i can see the calculations ?

  54. Dr. Anthony Says:
    November 5th, 2012 at 7:25 am

    @ nandan garg - Please contact support@noblesamurai.com - they will be able to help you out :-)

  55. Trish Says:
    January 6th, 2013 at 7:50 am

    Love it!

  56. Pietro Says:
    February 5th, 2013 at 8:21 am

    I'll try to repeat the question of Peter (without answer), just read ahead, because I have the same doubt.

    SEOV vs AWV in assessing commerciality.
    Some keywords have high seov and low awv, and vice-versa. Which of the 2 index have more importance when choosing a keyword/niche?
    Thank you very much for everything!

  57. Dr. Anthony Says:
    February 6th, 2013 at 4:46 pm

    @Pietro - there's no way to say which is more important in all cases, they are measuring two different things so it depends on what you're trying to promote and how you're trying to promote it!
    Often, it's the difference between them that will tell you something about the commerciality of a keyword phrase, but that won't be important in the same way for everyone.
    You may want to read more about the definition of each in our glossary at http://noblesamurai.com/c/glossary as that will tell you what data goes into computing each number.

  58. Adam Says:
    April 25th, 2013 at 10:48 am

    What if AWCPC comes blank for me? is it because there is no available data for that keyword?

  59. Dr. Anthony Says:
    April 25th, 2013 at 10:54 pm

    @Adam - contact support@noblesamurai.com - they will help you out :-)

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