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How do you determine the competitiveness of a keyword?

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So let's say I want to get to the top of page 1 for the keyword 'red widgets'. Apart from checking the PR of the top few sites currently ranking for 'red widgets', are there any other way to figure out how difficult it is likely to be to rank (i.e. how stiff the competition is) for a given keyword?
 
considering 8 out the 10 websites listed for the search term "red widgets" dont have the word red / widgets in there domain name.

Also if you google "red widgets" Results 1 - 10 of about 9,680 for "red widgets". (0.27 seconds) only 9,680 sites with the term.

Its would be easy enough to rank for red wigets with the right amount of keyword density, probably without any incoming links with the anchor text "red widgets".
 
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I think "red widgets" was an example term and the stats you quoted are irrelevant

considering 8 out the 10 websites listed for the search term "red widgets" dont have the word red / widgets in there domain name.

Also if you google "red widgets" Results 1 - 10 of about 9,680 for "red widgets". (0.27 seconds) only 9,680 sites with the term.

Its would be easy enough to rank for red wigets with the right amount of keyword density, probably without any incoming links with the anchor text "red widgets"
 
So you dont actually mean red widgets that was an example?

just quote your keyword and you can see how many sites are targeting the keyword
 
So let's say I want to get to the top of page 1 for the keyword 'red widgets'.

Option A) Buy redwidgets.co.uk/org.uk(or whatever the kw you're targeting is) for £££, followed by onsite SEO and minimal link building (directories, etc.)

Option B) Analyse backlinks of top 3 using decent databases like SEOmoz Pro's Linkscape or MajesticSEO. Create a kickass website and devise a cunning linkbuilding campaign based off the aforementioned research.
 
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Option C) Buy redwidgets.co.uk followed by a kickass website and a cunning linkbuilding campaign, and take an unassailable #1 position for "red widgets" and associated searches.

I know which one I'd choose :)
 
If your domain is not "keyworded" enough for the desired 'red widgets', you might consider puting a subdomain redwidgets.yourdomain.com and setting a site there. The rest = time+work.
 
If your domain is not "keyworded" enough for the desired 'red widgets', you might consider puting a subdomain redwidgets.yourdomain.com and setting a site there. The rest = time+work.

Exact match domain benefit is exactly that. Anything else will not cut it.

When was the last time you saw moneykeyword.randomdomain.co.uk in the SERPs? Check out this exact match domain sweetness.

Edwin, very few has the patience or skills for Option C). The internet would be a better place if there were!
 
Exact match domain benefit is exactly that. Anything else will not cut it.

When was the last time you saw moneykeyword.randomdomain.co.uk in the SERPs? Check out this exact match domain sweetness.

Edwin, very few has the patience or skills for Option C). The internet would be a better place if there were!

I may argue with the first point. What if you don't have the moneykeyworded domain (or it costs!), there is still an option.

Example: for iPhone you would not see a iphone keyworded domain on the first page on UK search, but iphone.orange.co.uk is there. It all depends...

Just my 2P...
 
Yeah, the 'red widgets' thing was just an example keyword :p

So, putting "red widgets" into Google and seeing how many results there are?

Another way is checking the number of backlinks the top listings have. Can I use Site Explorer - Yahoo! Site Explorer, or is that SEOMoz thing way better?

Thanks for the replies guys, keep em coming.
 
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