Thinking about starting a business? A great way to test your business model and get some quick data is through Google Adwords. Using the AdWords Keyword Suggestion tool, you will be able to see how competitive the phrases related to your business are, and how much it will cost to generate traffic from them. For example, let's say you were interested in starting a search engine optimization company. Using Google’s Keyword Suggestion tool, you would know that the phrase “search engine optimization company” would cost you about $11.69 per click, there is a high amount of advertiser competition, and the phrase is searched about 27,100 times per month. You will be able to find all of this data before you spend any advertising money.
By running some small test campaigns with conversion tracking, you will quickly be able to see the return on investment of bidding on keywords. This is also a great way to test your creative, including ad copy and landing pages, because you can control your budget.
In addition, research has shown that of pay per click traffic in general, 80-90% of the visits are new visits. This indicates that there is little overlap with other advertising channels so you will be bringing in a high percentage of fresh leads.
