It would mean that the keyword has more searches locally/globally and fewer competitors.
For example, let’s suppose it’s calculated by a simple formula
k=1000*number of searches/ number of competitors
So, the more searches it has, the higher the index.
Also, the fewer competitors it has, the higher the index.
Or a practical example (I’m using older data, so this is just for practice):
The keyword A gets 27.100 local searches per month, and the competition would be 3.850.000. (k=7,03)
The keyword B gets 823.000 local searches, with 35.200.000 competitors. (k=23,38)
So, this would mean that the overall benefit would be far greater with keyword B (a higher k).
But keep in mind that it would be very, very hard to rank high for that keyword.
Make a list of related keywords, use Google tools and write down the numbers of their local searches.
Google each keyword (perhaps with double quotes would be best) and write down the number of results (competitors).
You can use my formula - k=100*number of searches / number of competitors
Order the keywords descending by top k coefficient, then take first 10 (top 10) results and focus on 3 keywords from the top 10
with the lowest number of competitors. After you achieve rank for them, redo the process and take another 3 keywords…
I hope this helps a little :)
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