Originally Posted by Logan
Careful with that logic as it isn't always the case. Let me give you a scenario. I'd rather pay $1 per click for a keyword like [buy futons] vs .10 cents for [futon]. With a 500 budget, I may get only 500 visitors at a $1 per piece. But my experience is that you can sell more to those searching to "buy" versus a broad keyword. Plus consider, when the cost per click is $1 vs .10 cents other advertisers are probably bidding a higher amount because the conversions justify the higher cost per click.
That is true. However, assuming it's your first time to try PPC, paying 10 cents a click vs paying $1 a click will bring you about 10x the traffic.
Let's assume you get 100 clicks from a buying keyword, and 1000 clicks from other related keywords.
From the 1000 clicks, you'll be able to get a lot more data than 100 clicks, you'll be able to spot which keywords are getting high CTR, you'll be able to get data regarding your ad copy, landing page CTR, etc.
This kind of data is really valuable, since you'll be able to get more information for the same price. Optimizing the campaign from the beginning is a lot better IMO than paying more for buy keywords while you can pay less for the less costy keywords.
That's just my style