The reason for this is due to the popularity of research tools and automated software.
In years past the most common way to find a profitable niche was determined by its popularity.
While this remains true today, the actual manner of choosing the niche has changed.
Keyword and competition are the 2 most widely used factors and how they relate to each other are of great significance.
A common practice is to choose your keyword, determine the number of searches related to it and compare the competition.
A keyword that gets a lot of searches would surely be worthy of further research and especially if the competing sites were not numerous.
The theory behind this can be explained as follows: Research keyword #1 and keyword #2 Search results yield keyword #1 to have 1,000 searches per month with 10 competing websites.
Whereas keyword#2 has 10 searches per month with 1,000 sites promoting the product.
It would a logical conclusion to choose keyword #1 as a much better keyword and therefore a profitable niche to get into.
All of those people are searching for something and there is very little competition.
As to keyword #2, doesn't look as if anyone is really searching for this even though the competition seems to feel otherwise.
Besides, with that much competition it would be extremely difficult to get your foot in the door.
The automated software that is on the market today now allows you to take your keyword research a step further.
When you find a keyword that you are determined to use in your marketing and after entering it into the research tool you will find that you can drill down deep into the chosen niche and discover specific niches.
These specific niches may not be as competitively populated; thereby allowing you an even better chance for success.