How to Estimate the Value of Your Keywords

Estimating keyword value means calculating how much revenue a specific search term could generate for your business if you rank for it.

The thing is, most Brisbane businesses struggle with this. They pick keywords based on high search volume alone, create content around them, and then wonder why the traffic never converts.

As an SEO agency, we've seen this pattern repeatedly across hundreds of client campaigns. The issue isn't your content or your SEO. Rather, it's targeting keywords that look good on paper but don't match what your customers actually need. 

Thankfully, you don't need expensive tools to fix this anymore. This guide covers how to calculate keyword value, which factors count most, and which free tools give you the keywords for estimating. We'll show you how to find the right keywords that generate actual revenue instead of just vanity metrics.

Grab a cuppa, and let's find out which keywords are worth your time.

What Is Keyword Value Estimation?

Keyword value estimation is the process of calculating how much revenue a specific search term could generate for your business if you rank for it.

Think of it like this. Before you spend months creating content and building links, you’ll want to know if that keyword research effort will pay off. The process combines four key metrics:

1. Search Volume
2. Click-through Rates 
3. Conversion Data
4. Average Customer Spending

These help you find keywords that deserve your content creation budget versus those that waste time chasing traffic that never converts. While some keywords bring thousands of visitors who bounce immediately, others bring fewer people but higher-quality leads who actually buy.

Remember: Keyword value goes beyond search numbers alone. You need to understand which keywords connect with people ready to spend money with your business, not just casual browsers.

What Factors Affect Keyword Value?

The factors that determine keyword value include search volume, cost per click, competition level, and how well visitors convert into customers.

But here's the thing: you can't just look at one factor and call it a day. A keyword might have huge search volume, but if nobody's buying, that traffic ultimately means nothing.

Let's break down each factor so you can see what counts.

Search Volume and Traffic Potential

Search volume shows how many people search for a specific keyword each month, which helps you estimate traffic potential. Tools like Google Keyword Planner show average monthly searches and search volume data to estimate traffic opportunities for any given keyword.

High search volume keywords indicate more potential visitors here, but volume alone doesn't guarantee business value. You need to target keywords that match what people search for when they're ready to buy, not just browsing.

Basically, the more search volume a keyword has, the more competition you'll face at the top. Position one in Google typically captures an average of 27.6% of clicks, and lower positions receive progressively fewer visits. 

So if you're ranking at position five, you're getting a much smaller slice of that traffic.

Cost Per Click (CPC) Data 

CPC reflects what advertisers pay-per-click in Google Ads, which indicates the commercial value of keywords. And high CPC keywords often signal strong buyer intent and likelihood of conversions on your site.

The best part is that you don't need a Google Ads account to access this data. Free keyword tool options like Google Keyword Planner and Ubersuggest display CPC estimates to gauge which terms businesses find financially worthwhile targeting. 

And if companies are willing to spend $20 per click on paid search, that keyword probably converts well.

Keyword Difficulty and Competition Level

A keyword with 10,000 monthly searches means nothing if 50+ high-authority sites already dominate page one.

That's why you need to check keyword difficulty scores. This shows how hard ranking will be based on competing websites' authority levels. While high-difficulty keywords may offer great value, they need months of link building to rank for. Ultimately, that requires serious investment in time and resources.

This is where most people go wrong. They chase high-volume keywords when low-competition keywords and long tail keywords offer better keyword opportunities.

Conversion Rates

Conversion rate shows the percentage of visitors who complete desired actions like purchases or inquiries. In our experience, keywords closer to purchase intent (like "buy," "price," "quote," or "near me") typically convert at 2-5%, while informational terms convert much lower.

Yes, more traffic sounds great, but keywords bringing ready-to-buy customers will always outperform high-volume terms that just attract browsers. 

So how do you know which keywords fall into which category? Simply check your analytics for historical conversion data to see which keyword types actually generate business results.

Now that you understand the metrics behind keyword value, let’s look at what drives those metrics in the first place: search intent.

How Does Search Intent Affect Keyword Value?

Search intent determines keyword value because it tells you whether visitors will buy from you or just read and leave. So, a keyword with 10,000 monthly searches but wrong intent delivers less value than a 500-search keyword that matches what buyers actually type.

Here's how the two main intent types affect your keyword strategy:

1. Informational vs Commercial Keywords

Honestly, not all searches indicate buying intent. Some users want free information while others just want to make a purchase.

Informational keywords target users seeking answers, guides, or knowledge without plans to buy immediately. They're searching directly for "how to fix a leaking tap" or "what is SEO" because they want to learn something.

Meanwhile, commercial keywords indicate users are ready to buy, compare products, or take action on services offered. Commercial terms like "plumber near me" or "SEO services Brisbane" work well for both search rankings and PPC campaigns (paid ads follow the same logic).

We recommend choosing informational keywords if you need to build authority and attract top-of-funnel visitors. But if you want immediate leads and sales, then commercial keywords are your best bet. The right mix depends on your business goals and where you are in your content marketing strategy.

2. Matching Intent to Your Goals

Aligning keyword intent with your content type means visitors find exactly what they're looking for on your pages. That means better engagement, lower bounce rates, and more people taking action.

As we’ve explained before, your content targeting informational keywords builds authority and attracts top-of-funnel visitors who may convert later. That's honestly fine if building brand awareness is part of your content strategy.

But remember, creating content for informational searches on your sales pages rarely gets commercial searchers to buy from you.

When someone's ready to purchase, commercial keywords should align with service pages, product listings, or conversion-focused landing pages specifically. If your target keywords match what buyers search for, that's when you'll see real results since those visitors came looking to buy, not just browse.

How Do You Calculate Keyword Value?

The basic formula multiplies search volume by click-through rate by conversion rate by average order value.

Here's how it works: Start with the keyword search volume for a given keyword. Most free keyword research tools provide search volume data, though some show ranges instead of exact search volumes. Using exact numbers here gives you more accurate projections.

Next, multiply that by the estimated click-through rate based on your target ranking position. Then multiply by your conversion rate. If 2% of visitors become customers, use 0.02 in your calculation.

Finally, multiply by your average order value. Let's assume that's about $200.

Now put that into action: 1,500 searches × 30% CTR × 2% conversion × $200 order value = $1,800 monthly keyword value.

Keep in Mind: Conservative estimates using position 5-6 rankings provide realistic projections rather than inflated best-case scenarios. This approach helps prioritise which keywords deserve your SEO budget based on actual data, not guesswork.

What Free Tools Help With Keyword Research?

Google offers two free tools, Google Keyword Planner and Google Search Console, that provide all the essential data you need to estimate keyword value accurately.

So you don't need expensive software subscriptions to gather the search volume data and keyword analysis you need. Different tools offer varying features, but a good mix of free keyword research tools gives you comprehensive insights without the price tag.

See what these two free options do:

1. Google Keyword Planner

Google originally built Google Keyword Planner for Google Ads, but it offers useful organic search insights at no cost. You can access it with a Google Ads account, though you don't need paid plans to use the keyword planner tool. 

It provides:

• Search volume estimates
• CPC data
• Competition levels for any keyword term

Also, the tool shows keyword suggestions and related keywords to expand your target list beyond the initial brainstormed terms. You can build keyword lists, check search trends over time, and even enter your domain to see keyword opportunities specific to your site.

While paid tools like SEMrush's Keyword Magic Tool offer more features, Google Keyword Planner delivers the core data you need for keyword research completely free. You just have to export your keyword lists to track and prioritize which new keywords deserve your attention.

2. Google Search Console

What if you're already ranking for valuable keywords but don't know it yet? That's where Google Search Console comes in.

It acts as a free keyword explorer tool that reveals which keywords already drive traffic to your site and their current ranking positions. Performance data shows actual clicks, impressions, and CTR rather than estimates from external research tools.

This visibility helps you find keywords applied to the existing content that you never intentionally targeted. You can also spot low-hanging fruit where small improvements could significantly increase traffic and conversions. 

Plus, Google's new features in Search Console help track how your site appears in SERP features like featured snippets.

Pro Tip: Combine Search Console with other data from Google Keyword Planner. This way, you've got everything needed for solid keyword analysis without spending a cent on paid keyword research tools.

How Do You Test Keyword Performance?

Testing keyword performance involves creating optimised content and monitoring rankings, traffic, and conversions over several months. While the calculations give you estimates, only real-world testing reveals whether a keyword actually delivers promised value.

Here, you need to begin by validating your keyword research assumptions with actual data from your site. We usually do this by running small-scale tests. 

Create optimised content for selected keywords and monitor performance over 3-6 months before scaling efforts. We've noticed that these small tests show whether the estimated value matches reality for your specific audience and conversion funnel.

What's more, small tests prevent wasting resources on full keyword strategies that don't deliver expected returns. So we recommend starting with 3-5 target keywords in your content strategy, building pages around them, and tracking what happens. If they perform well, expand your keyword lists with similar terms for your search campaigns.

Track Rankings and Conversions

Ranking on page one feels great, but does that keyword generate leads and sales for your business? Track these to validate results:

• Track Position Changes: Monitor ranking positions weekly to see if your content moves toward page one over time. Don't panic if your ranking drops a spot or two on any given day, since these small shifts happen constantly.
• Connect to Revenue: Connect keyword performance to actual conversions using Google Analytics and Search Console data together. Google's new features make this keyword analysis easier than it used to be.
• Use Real Numbers: Rather than industry averages or initial assumptions, refine value estimates based on real conversion rates. Even small differences in conversion rate dramatically change keyword value calculations.
• Review Regularly: Some keywords look promising based on search volume ranges, but fail to convert in practice. That's why you should update your keyword lists regularly as you discover which key metrics are important for your business.

Start Small, Then Expand

Estimating keyword value changes SEO from guesswork into data-driven decisions about where to focus efforts. And you don't need expensive tools or years of experience to work out which keywords deserve your attention.

Start with free keyword research tools like Google Keyword Planner and Search Console. Test your keyword strategy carefully with a handful of target keywords before scaling up. And most importantly, focus on keywords offering realistic ROI given your website's current authority and conversion capabilities.

The best keywords for your business aren't always the ones with huge search volume. So find keywords that match buyer intent, calculate their potential value, and validate your assumptions with real data. 

Get these right, and you'll generate revenue instead of chasing vanity metrics that don't move the needle.

Still unsure which keywords will drive results for your Brisbane business? Get in touch with Matter Solutions to build a keyword strategy based on what converts, not just what ranks.

Got any tips? Let us know in the comments.