Let me give you a simple example.
Lets imagine that you are a insurance company specialized in high end service car insurance deals. Since you deal with car insurance you choose to have your ads shown when people use “car insurance” in their search.
It seems like being a logic choose. Lets look a bit closer.
People that use “car insurance” in their search are searching for many different things.
over 50 car insurance
17 year old car insurance
Are searching for special deals for their age group and they will probably not buy unless you have a special deal for their age group.
car insurance not on comparison websites
car insurance comparison
Two users that are searching with the same keyword, but are looking for the opposite.
military car insurance
cheap car insurance for convicted drivers
The search can also be very specialized. Like some searchers looking for special deal for military employees or convicted drivers that try to find a insurance company that don’t penalized them to hard.
business car insurance
In the middle we have “business car insurance” which looks like it convert well(green hats=conversion) for a high end service car insurance company.
We also have a conversion from the group that search for “car insurance not on comparison websites”.
All the other keywords didn’t give any conversions.
So what can we use this information for?
By only having our ad showing for relevant keywords. The keywords that is used by people that are interested in our product (high end service car insurance) we can:
1. Save the cost of many irrelevant clicks
2. Get a higher click through rate (CTR), quality score and thereby lower click price = Higher ROI
3. Synergy effect of happy customers (more organic traffic, more mouth to mouth referral, more links and less support etc.)
When you built your business on foundation of people, that want what you have to offers, everything become easier from there.
Next step is to dig deeper into the places that are converting. In this case I think we need find all the keywords related to “business car insurance” and group them into even more target keyword groups and make target landing pages for each group.
In this step we will see searchers suggest other directions that is profitable for us. It could be special car models/brands that want high end service insurance or special group of people (like high paid).
Why aren’t every one using longtail keywords?
Because it take skills.