[I know there is an algorithm, and perhaps it’s not something that’s an exact science, but I’m seeing a lot of folks saying that you should only do keyword phrases that have a CPC of at least $1. Roughly, how does that translate to Adsense earnings? And, if say the CPC is $10, would it be correct to assume that your click earnings would be ten times that of the $1 ones? I’m just trying to gauge whether I should be shooting for high volumes of lower CPC keyword sites or a smaller volume of higher dollar ones if I can find them. Thanks in advance!]
The keyword research data is based on Search Network CPC, not the Content Network. While this is useful as a general indicator of higher versus lower average CPCs there is not a one to one relationship. There are other factors that come into play.
On the Search network, advertisers are competing for the ad position for the SERPs for a particular keyword. The CPC is determined by an auction for that limited ad space. However, on the Content Network advertisers may see their ads spread across many many pages and this significantly larger marketplace is controlled by rules of supply and demand. Advertisers can often purchase ad space at a tiny fraction of what it costs on the Search Network.
There are many well-known niches that have so many pages offering ad space that the average CPC is much lower than you might anticipate based on Search Network CPCs. And there are some lesser-known niches that command much higher average CPCs due to a short supply of available ad space.
You need to consider all those above-mentioned factors to predict a rough estimate of your potential CPC.