AdWords Clever Wizard can show keyword searches and competition info. This info is crucial in keyword research, but it is hard to analyze searches and results (competition) together. Since both are absolute values, it is not very convenient to compare different keywords. To make it more convenient, there is a parameter called Keyword Efficiency Index or KEI. It was initially introduced by Roi Summantra and it is calculated with the following formula:

KEI = (Searches * Searches) / Results
KEI is a relative parameter and thus allows you to easily compare different keywords with a wide spread of values representing searches and results. The higher the KEI is, the better. Good values are 100-200, while 400 and higher are excellent. However, KEI seems to be overvalued for very popular keywords. Due to the (Searches * Searches) element in the above formula, it may reach 1000 or even 10000, which doesn't seem to be true.

Main window - KEI

In case of very popular keywords, AdWords Clever Wizard calculates another parameter - Ratio, which is less dependent on Searches:

Ratio = Results / Searches
The ideal Ratio value is 1. This parameter shows how many times competition outnumbers demand. Therefore, the higher this value is, the worse. Good values, though, are 5-50.

You can use any of these parameters in your analysis judging from your experience.

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