In a nutshell, Keyword Effectiveness Index (KEI) is a measure of the potential effectiveness of a keyword phrase. Understanding KEI can allow you to more effectively select keywords that have a high likelihood for success.

The Keyword Effectiveness Index was developed by search engine specialist Sumantra Roy, and is a widely used tool for pinpointing niche keywords by identifying keywords with the least amount of competition.

Here’s how it works:

Take the search frequency for a particular keyword and divide that by the number of sites geared towards that same search phrase.

For example, let’s say there are 1,000 searches per day for the keyword phrase “Joomla Website Development”. And, let’s assume there are 1,000 sites optimized for the search phrase “Joomla Website Development”.

Searches / Competition = KEI
1,000 / 1,000 = 1

So with the above scenario we have a KEI of 1.

The higher the KEI the greater the likelihood of success (top ranking) with that search phrase. If there were only 100 competitor sites in the above example the KEI would be 10 instead of 1…(1,000 / 100 = 10).

So, you’re saying, “Duh, less competition means it’s easier to get to the top…thanks for nothing.” But it’s a little more complex than that. You use KEI to examine niche possibilities. It’s part of an effective search engine strategy, but it is by no means the only tool you should use.

I’ve found that a lot of keywords with high KEIs are really 2nd and 3rd tier choices - not the powerhouse tier 1 search phrases. But a high KEI can give you the opportunity to grab some easier visitors.

Here’s another example (all the #’s are assumed).

Search Phrase 1: “Website Design”
Searches: 10,000
Competition: 20,000
KEI: .5

Search Phrase 2: “San Diego Website Design”
Searches: 100
Competition: 25
KEI: 4

Obviously, you would rather climb to top of the pile with the first keyword phrase, “Website Design,” just due to its larger popularity and search frequency. But, the higher KEI on the 2nd search phrase shows us that it would be significantly easier to obtain higher, and faster, results if we focused attention there.

It takes careful analysis and an understanding of a site’s goals and audience to craft a keyword strategy. With some keywords you may want to be a small fish in a big pond. In a similar instance it may make sense to be huge fish in a puddle.

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Article by Greg Banig Design & Marketing, http://www.gregbanigdesign.com