
Selecting the right keywords for your Google Ads campaigns can be challenging. Rather than relying on guesswork, marketing professionals use data-driven methods to identify keywords with genuine revenue potential. Here's a step-by-step guide to estimating keyword profitability using SEMrush.
Step 1: Identify Your Benchmark Competitor
Begin by searching your target keyword on Google. For example, searching "prescription colored contacts" will reveal the top-ranking website. This dominant competitor serves as your benchmark, having already demonstrated the keyword's commercial value through their ranking success.
Step 2: Analyze Competitor Traffic Sources
Input the competitor's domain into SEMrush and access their organic search keywords report. This reveals all ranking keywords driving traffic to their site. Export this data to Excel to filter keyword clusters related to your product or service, then calculate the total traffic these keywords generate.
Step 3: Calculate Estimated Revenue Potential
With traffic data in hand, apply this formula to estimate potential revenue:
- Traffic: Example - 2,500 monthly visits for "prescription colored contacts"
- Conversion Rate: Industry average (e.g., 2% for e-commerce)
- Average Order Value: Product-specific (e.g., $60 for colored contacts)
Sample calculation: 2,500 visits × 2% conversion × $60 = $3,000 monthly potential. For an entire keyword cluster generating 18,400 visits, the estimate becomes $22,080.
Enhancing Estimation Accuracy
Consider these refinements for more precise projections:
- Segment keywords by product attributes (brand, color, material)
- Account for seasonal demand fluctuations
- Analyze competitor site structure and content strategy
Important Considerations
These estimates serve as comparative benchmarks rather than absolute predictions. The true value lies in identifying relative opportunities among keyword options. Adjust conversion rates and order values according to your historical data for more accurate projections.
This methodology provides a framework for data-driven decision making in paid search campaigns. By systematically evaluating keyword potential, marketers can allocate resources more effectively and optimize their Google Ads strategy for maximum return.