Keyphrase analysis critical
In order to drive relevant traffic and convert that traffic to customers you must get into the mindset of your potential audience. That means you need to understand what keyphrases they are searching for on the search engines. They will be a large spectrum of keyphrases some generating much more traffic than others. Once you know what your audience is searching for when they are looking to buy or find out about your type of products then you need to get a feel for how many real competitors there are for each keyphrase. Notice I say real competitors. Real competitors are the ones that have reasonably compelling messaging in their listings and landing pages, have optimised landing pages for those terms and have generated a healthy number of relevant backlinks from relevant sites.
Having created that picture of the market landscape you are then in pretty good shape to start discerning which keyphrases are likely to work for you in terms of optimising your site and bidding for paid search.
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