Use the traffic estimator tool for keyword research

Are you really getting the most out of your money by bidding higher on max CPC? While it is logical to believe that by doing so, you can reduce competition, but look again. For Google AdWords, bidding higher or lower goes hand in hand with Daily Budgets. Each keyword or paraphrase you plan to use should be carefully reviewed and tested before running your campaigns to ensure maximum returns on investments.

Max CPC at 12.00
Daily Budget at 100.00

Max CPC at 1.00
Daily Budget at 100.00

You can experiment with the traffic estimator tool to come up with keywords that will actually produce a return and perform the best for your website niche. You can find keywords suggestions through Google Analytics and the Webmaster Tools provided straight from Google. It's also a good idea to use and analyze other sources that provides keywords or paraphrases for your site such as Alexa and other page rank webpages.