Its difficult to understand at first because: Hey! if a lot of advertisers are targeting a lucrative keyword that means these same advertisers are paying SEO big bucks to target this same keyword right?
True but not always true.
Here Is An Illustration
Check out that image below. “lose weight” is “low competition” and “weight loss pills” is “high competition”. Right?
This actually means that weight loss companies feel that something like “lose weight” may not be profitable because on that same page – there are many blogs on how you can lose weight naturally, “miracle” natural cures, about genetic causes, discussion on diet, pills, surgery, rubber band treatment, massages, etc. The searcher is looking for what others are doing to see if it helps him or her – hopefully fast, cheap and natural.
If you think organically scoring for “lose weight” is easy, think again. In Google.com there are 63,300,000 competitors vying for the top spot.
Whereas for “weight loss pills” – someone searching for that has a high buying propensity. Once he/she clicks, assuming the landing page is compelling enough, the advertiser has a far higher chance of scoring a sale.
Adwords competition indicators offer help only for advertisers. Do not ever mistake it for organic search competition.
Get an SEO consultant in today. Ask exactly how he will go about helping you. Don’t be blinded by the numerous “successes” he will whip out to impress you (those could be via the undesirable “Black Hat” methods). Judge for yourself if you can do the same or better. Calculate your opportunity costs if you decide this is something you can DIY. That could well be one of the most important decisions you could make in your business career because being on Page 1 of Google (and staying there) or not can actually make or break a business nowadays.