Long Tail Keywords for PPC, not so cheap anymore..
Just like the old orthodox theory of the balance between supply and demand, once again we can say that this theory is met. If we were back in 2006 we would certainly advice anyone running PPC campaigns to go out there and find more accurate type of traffic by using Long Tail keywords, but not only because the quality of the traffic it would bring, but also to decrease the high bid prices compared to the generic terms. But the story is a little bit different nowadays; I would still advice to use Long Tail Keywords to bring qualified traffic, but not to lower our cpc bids.
Just like the old supply and demand theory, once the demand for a product increases, so does its price due to the supply not been able to satisfy the market. In PPC words, most of the people run behind the long tail keywords cloaking the niches; niches for Long Tail Keywords that by then did not have us much traffic as generic keywords do.
Today Long Tail keywords have shown to be more used than before due to the new user behaviors are Search Engines. Users, globally, have learnt that using more accurate phrases can refine searches and get what they are looking for faster, without having to screen dozens of unrelated sites. So yes, today volume searches through Long Tail Keywords have become larger, but as well, have the PPC advertisers started to include them in their campaign at large volumes. This leaves us with most advertisers bidding on the same Long Time Keywords and as a result and increase on the Cost per Clicks.
So, our new task, due to this case scenario, is to find the equilibrium point for our cost per lead with a higher conversion rate, so we can compensate the higher costs of Long Tail Keywords, when using them. When running a PPC campaigns you must have in mind to structure them based on Long Tail Keywords bringing qualified traffic, even if they their price turn out to be expensive. Look for conversions, higher conversions rates will compensate that loss or keywords economy.