Costs of keywords can vary substantially by geography. It is always good
practice, if you are a business that needs to deliver products or services
locally, to advertise in metropolitan areas which are within reasonable travel
distance of your home base.
There are two common scenarios. For a product or service that MUST be
delivered locally, marketers usually expect that the cost of keywords nationally
would be less than the cost of keywords locally. For example, the cost of
the keyword "lasik" when advertising in Yahoo! would be less than the cost of
the keyword "lasik Chicago" for a marketer who wishes to serve the Chicago area.
That is because you can not do lasik surgery over the Internet.
Likewise, the cost of the keyword
"life insurance" nationally should be higher than the cost of the keyword "life
insurance Chicago". That is because personal presence is not necessary to
fulfill a life insurance purchase - although it is often desirable.
However, remember that often
things do run "true-to-logic". There are many demographic and marketing
factors which could influence the cost of keywords.
Although we are using search terms
in the examples below that have a local component, the results displayed are
based on Yahoo's search engine for domestic results. Results in Google
might be much different and need to be examined independently.