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Gain Valuable Market Insight in 10 Minutes Flat

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Are you looking to enter new markets or better serve your existing markets? If so, here's a technique that will allow you to gain insightful market research and learn best practices REALLY QUICKLY.

And for no cost, thanks to Google.

The other day, my son told me he wanted to take up lacrosse, so let's use lacrosse as our example. So, let's say I want to get into the lacrosse business, selling equipment through stores and/or online.

To start my market research I went to Google's new keyword search volume tool here: https://adwords.google.com/select/KeywordToolExternal

I typed in "lacrosse" and Google then shows me all the related keywords and how many times people searched on them last month. It immediately showed me the following:

Keywords_________ Approx Monthly Search Volume
lacrosse.......................... 2,740,000
lacrosse equipment........ 110,000
women's lacrosse........... 74,000
girls lacrosse.................. 60,500
high school lacrosse...... 49,500
lacrosse sticks................ 49,500
lacrosse wisconsin......... 49,500
lacrosse camp................ 40,500

From this, I see that lacrosse is a pretty popular sport; in fact, when I download Google's list of the top 150 lacrosse-related searches, I see that the sport gets 4.9 million searches per month.

To put this in perspective, and to see if the market is growing or expanding, I go to Google Trends at http://www.google.com/trends and type in "lacrosse."

Not only does Google Trends show the number of searches that people have done on lacrosse monthly beginning in 2003, but when I type in additional sports like football and basketball, I can see the relative size of lacrosse. Also, from the Google Trends graph, I quickly saw that lacrosse is a seasonal sport with peaks and valleys in search volume.

My next area of research is to determine the level of competition for selling lacrosse equipment. For this, I simply type in terms like "lacrosse," "lacrosse equipment," and "high school lacrosse." I find that general terms like "lacrosse" and "high school lacrosse" have very little competition (based on the few Sponsored Links I see on the top and to the left of the search results), thus providing a significant opportunity if I can figure out products and/or services to fulfill the needs of those who search these terms.

For the term "lacrosse equipment," which is a term that shows more buying intent (i.e., someone who searches this term has more intent to purchase a product than someone who simply searches "lacrosse"), I see several more competitors. Finally, when I search the term "lacrosse sticks," I see even more ads, since someone who types in this phrase has even more buying intent.

The next tool I use is Google's Traffic Estimator, located at https://adwords.google.com/select/TrafficEstimatorSandbox, which shows both the estimated clicks per day I would receive if I advertised on the term, but more importantly, the average estimated price that I would pay each time someone clicked on my ad.

Why is this important? Well, it gives me an estimate of how much my competitors are spending each time someone clicks on their ads.

For "lacrosse sticks," Google estimates that the top 3 advertisers pay between $0.99 and $1.26 per click.

The final stage of my research is to return to Google.com, do a search on "lacrosse sticks," and conduct competitive research. I click on the ads of the companies advertising on the keyword, and figure out how they are generating more than $1.26 per click.

I assess things like:

1. How their web pages are organized

2. Whether they are trying to generate profits from merely a one-time sale or whether they have long-term revenue generation systems (e.g., a paid membership club)

3. Whether they have a newsletter or other mechanisms to collect the email addresses of their prospects so they can market to them on an ongoing basis, etc.

This process provides me with significant competitive intelligence on current practices in the industry.

So, maybe this takes a little more than 10 minutes to thoroughly assess a new or existing market, but this technique and the tools listed above will quickly give you great information and insight really quickly.

 


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Kim Chernecky says

Excellent article! I can't believe you were able to simplify the process of google adwords so beautifully! Thank you so much!
Posted at 7:33 pm
paula harrison says

I agree with what you have noted but one of my favourite but simple checks on google is to do an intitle search. So, for the Lacrosse search term, do it this way in the google search bar: intitle:lacrosse This means that you can see which sites have the term lacrosse in their title and cuts down massively on the web traffic generated but it still shows you true targeted traffic.
Posted at 1:22 pm
Melissa Sherman says

Love it!!! Thanks for the freebie info!
Posted at 8:24 pm
Kerry Hayden says

Nice post! Another tip from the top...Once you have performed a google search, you can append &adtest=on to the url search string which will give you unmolestered results showing true page position and adwords test position - hope this helps! Thanks for the post...
Posted at 9:44 am
George Thistle says

I am always dubious about the Google adwords tool. You often see 'negative' keywords that nobody searches for, but get the same results as their positive searches
Posted at 6:06 pm

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