How to choose best Keywords for AdSense - Facts and Myths

Ever wondered how to select best keywords for your Adsense websites? Your focus is earning money as well as attracting organic traffic (Traffic from Search Engines) towards your website.
Here is what you need to know while choosing a keyword, a scientific study that pictures the ideal keywords for your next upcoming adsense website. And this guide guarantees to blow your mind.

Lets first study how to choose Keywords that lead to more Adsense money:

CPC (Cost per click) -

Advantages and DrawbacksWhat CPC indicates?

When we think of high paying keywords, the first thing that pops up in our mind is CPC. CPC is the maximum amount of money an advertiser is willing to pay you for a click. And its believed that - Higher the CPC, higher the payouts you can expect by targeting that keyword in your AdSense websites. You can get most accurate CPC from the source itself - Google.
However CPC is not the only factor that can tell how much profitable a keyword is. There are many other factors that you should consider..

Drawbacks of CPC --

What if there are no advertisers bidding on a keyword with high CPC? Obviously it means nobody is going to pay you that high for a click.- What if the traffic on the keyword is technical enough and doesn't click on ads (banner blindness)?- What if Google gets loads of traffic on that keyword enough to fulfill the desires of high paying advertisers? In this case google will only throw remaining peanuts towards you - most low paying ads.Obviously Google will like to keep all the high paying ads within its own Network pages as much as possible. So you see, CPC just shows you a small part of the entire picture.
Lets explore the rest part of the picture...

Number of Advertisers -

Most important figureKeywords with high CPC do not always come with high number of advertisers. There are many keywords in Google's Adwords system which have a very high price but come with almost no or very less number of advertisers. Now if you build a webpage or website around a keyword on which nobody is bidding, obviously google will try to fill the ad blocks with ads of related keywords rather than the high paying keyword you were initially targeting with. There is no guarantee that Ads of related keywords will be as converting for the Advertiser as they could be. So chances are high that your clicks will be passed thru SmartPricing Filter, eventually resulting in lesser payouts.

So, it becomes quite important to see the number of advertisers bidding on the keyword in question. More are the number of advertisers, more is the competition between them to get top position, and more revenue per click they are willing to share with you. In other words - More number of advertisers mean more people are fighting against each other to pay you higher Adsense money.