When a certain keyword has a higher volume that means that more customers are interested in that particular topic and are searching about it on Google. However there are a few pros and cons of having high volume keywords and you need to consider those factors as well as come up with solutions that can manage over the cons.
The advantages of having high volume keywords is that more people are able to see your ads, hence more people are going to click on your ads and they are more likely to purchase your products or services. Not only that, high volume keywords also help the people gain interest in your product or services.
By having high volume keywords, there would be more irrelevant search queries which would lead to lower conversion rates. By doing so, you would have higher Cost-Per-Action (CPA) which would have low Return On Ads Spend (ROAS) and that would be a wastage of ads spent especially when you have limited ads budget and funds.
Other Factors to Consider
How can you be in the loop without burning your pocket?
Well, one, you can go for medium or low keyword Cost-Per-Click (CPC) but a higher intent keyword has the possibility for 100% impression share. Having a specific product or service would result in limited specific keywords however you would have a specific target market that knows what they are looking for so don't be alarmed by the low numbers if your strategy revolves around long-tail keywords.
If you have a low cost product, avoid bidding high on keywords as the profit margin will be low and won’t do you any good. You can revisit the purpose or goal of your campaign if you only want market awareness and gaining exposure, then Google Ads is a cost of entry and total conversion will not be your defining metric.
However if your product or service is a one time purchase or a low cost item that is more transactional, you should be more careful with your advertising cost. One thing you should consider is the amount of conversion that the keywords would generate. You should concentrate more on conversion rate optimization and determine which keyword would have the highest profit.
Keywords may help bring clicks into your website but if you can’t change those clicks into conversions that defeats the purpose of your buying those keywords. So, before you bid on your next keywords, analyse which is the best for your product or service and you will effectively use the keyword while also keeping your budget in check.