I’ve found some conflicting information about this online. Some people seem to think this has to do with how difficult it is to rank organically in Google for that keyword, however, it’s actually a metric to gauge competition in Google Ads for that keyword on Google’s Search Network.
So basically, it’s a scale from 0-100, “0” being very low search advertiser competition and “100” being very high search advertiser competition.
Here’s the math used by Google to calculate Competition (indexed value):
Number of ad slots filled / the total number of ad slots available
This is the definition directly from Google:
“Competition (indexed value)” shows how competitive ad placement is for a keyword, specific to the location and Search Network targeting options that you’ve selected. The level of competition from 0-100 is determined by the number of ad slots filled divided by the total number of ad slots available. If not enough data is available, you’ll see a dash (-)”
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