By doing a competitive analysis, one can identify terms that are searched for frequently but yield few results. If you use the keywords identified on your pages, the web pages are more likely to rank high in the search engines as you will face little competition from other sites.
Keyword Effectiveness Index is what is usually used by people to indicate the effectiveness of different keywords. KEI refers to a competition ratio, which shows the number of people searching for a term and the number of Web pages returned by a search engines for the term. Ther higher the KEI, the more powerful the term.
However, KEI is not always useful. A term with few competing pages and is searched upon infrequently can generate a high KEI. But such term would do you no good as the number of searches is low while the competition is low.
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