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In the last chapter of this series, we discussed the answer to the question: “Does this niche have enough interest to pursue?”. Accordingly, if we have indeed found a niche in which there is sufficient interest to pursue, we now move to the next logical phase of our marketing plan and that is to determine if there is actually money being spent in this particular niche. If there is, then we can start thinking about creating or sourcing products to market to the individuals making up this niche.

So how do we determine if there is money being spent in this niche?

One of the simplest ways and probably the one most commonly used is that of paid listings. In short, paid listings follow the money because there is an inherent ROI or Return On Investment. This means that for every dollar spent on advertising, some multiple of that number is being made back. Hopefully, the return is greater than the investment. Keep in mind that there are no guarantees, but generally, paid listings are a good starting gauge.

Let’s look at an example. Take the search term “bodybuilding” for instance. If you search Google for the search term “bodybuilding” you will find as of the time of this post, about 17,300,000 results. Interestingly, you will notice that there are no paid links at the top of the organic search results and only three to the right of the organic search results. What does this tell us? Well, it tells us two things. First it tells us that the search term “bodybuilding”, although receiving about 6,120,000 searches per month according to Google, is apparently not a niche search term where money is being spent. Maybe this search term is too general. Whatever the case, people searching for simply “bodybuilding” apparently not looking to spend money. For that reason, we are not interested in focusing our efforts there.

Now, let’s refine that search term a little and focus on something is a slightly smaller niche. Let’s try the search term “bodybuilding supplements”. Here, we find a completely different scenario. If you search for this term, you will immediately see a huge difference with respect to the number of paid links placed around the organic search results. You immediately see that the right side of the page is filled with paid links selling information or products related to the “bodybuilding supplement” niche. This tells us one thing…that there is money being spent on “bodybuilding supplements”.

This research makes perfect sense in one thinks about it because if a person is searching for “bodybuilding” then they may be just looking for general information on that subject and not looking to actually buy anything. If they are searching for body “building supplements” then they have probably already searched for information on bodybuilding and are now looking for information or a product that fills a particular need or want in the very large and generalized bodybuilding niche.

The interesting thing about the search term “bodybuilding supplements” is that is receives 165,000 searches per month according to Google, but more importantly it has 1,390,000 competing pages as opposed to the 17,300,000 for the term “bodybuilding”. Believe it or not, anything with a search to competing pages ratio similar to that for “bodybuilding supplements” is quite manageable even though one would think that by this point “bodybuilding supplements” would be completely saturated, and it is to a degree, but keep in mind that there are other sub-niches within that one that are NOT saturated. For more on keyword research, see the link in this sentence.

So there you have it, the absolutely simplest way to see if money is being spent in a particular niche, paid links.

As always, I am interested in your comments…:)

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