How to Compare Google Advertising Rates

Google Keyword Tool
1. Go to the Google Keyword Tool page. The link is available in Resources. You do not need to sign into a Google AdWords account, but you may do so, if you have one. It will not make a difference.
2. Enter a keyword into the box on the left in the 'Find Keywords' section. The keyword you enter should be relevant to a specific product or service you want to promote. In other words, use one of the keywords your target customers would type into Google when they are looking for a product or service like yours.

3. Select the box next to 'Only show ideas closely related to my search terms.' Click the 'Search' button and allow Google to deliver the search results. This displays a spreadsheet of keywords related to the one you entered, along with Google search data about those keywords.
4. Click the 'Columns' drop-down menu above the search results, and make sure 'Estimated Avg. CPC' is selected. This displays the estimated average cost-per-click for each keyword listed, letting you compare the Google advertising rates for the displayed keywords.
5. Click the top of any column to sort the related keywords by competition, global monthly searches and local monthly searches, to get further insight.
6. Repeat Steps 1 through 5 with different keywords -- and keep doing so -- until you have a general idea about the size of your market, competition and going rates for your related keywords.
Google Traffic Estimator
7. Go to the Google Traffic Estimator page. Again, you do not need to sign into a Google AdWords account, but you may do so if you have one.
8. Enter a keyword into the box on the left in the 'Get Traffic Estimates' section. Again, the keyword you enter should be generically relevant to a specific product or service you want to promote.
9. Hit 'Enter' to drop the cursor to a new line. Type another keyword related to your business. Repeat with as many keywords as you wish, then click the 'Estimate' button. This displays a comparison chart for all of the keywords you entered.
10. Click the 'Columns' drop-down menu and select every available option. Click the 'Estimated Avg. CPC' column header, to organize the keywords by cost-per-click. Click 'Estimated Daily Cost' to organize the keywords by total daily cost.
11. Organize and compare your related keywords by global or local monthly search frequency, estimated ad position on Google search pages, estimated daily click-through for ads containing those keywords, the amount of competition you face when bidding on ad placements, and local search trends.
12. Repeat Steps 1 through 5 as often as you think of new keywords. Over time, you will develop a sense of which keywords most closely relate to your business, pull in the most traffic and command the most sensible Google advertising investment.