My site focuses on selling widgets. The main searched keyword and the one i get the most traffic from is [widget], so of course i have one specific ad for that term. I also have one ad for [red widget] and one for [blue widget].
Now I also want to do the broad search term widget (no quotes, brackets, etc) to pick up all the searches done with widget in the search. This last ad will pick up all the garbage behind the big 3.
Now if i create the broad widget ad wont it also appear under [widget], [red widget], and [blue widget]? Now I will have 2 ads showing for these terms and i assume google wont like that. So how can i use the broad term widget ad but not have that specific ad show for the 3 main terms?
In general - The more focused the keyphrase is, the less traffic but higher the conversion.
How is sales conversions on widgets; as well as red widgets, blue etc.
I would personally start on other way around - drop widgets and get very specific.
Informative, generic products/services, and brand.
Widgets is not a good example but I try:
Informative queries - produces vast traffic but much less conversion to sales without further motivation. e.g "widgets" as a keyword that brings people to your site for information about "widgets" not necessarily to buy "widgets". Generally the term is very broad and may produce lots but you also spend lots on non-relevant and unlikely sales therefore your actually cost per sale is high.
Generic products/services queries tied to a need - produces less traffic but more sales conversions without further motivation. Fewer people search example: "buy widgets", "christmas widgets", "find widgets" and so on. But a few of these a day on each is more likely than not 6 immediate sales. These individuals are beyond needing "just information". You spend significantly less per qualified sale therefore more money to develop other low use but highly qualified terms.
Brand queries - ultimately branding make you synonymous (the first thing people equate to) with a need. Rarely does a company receive these (e.g. a specific brand name query) - say "Whirlwidgery" but you don't pay unlike clicked therefore the perfect Adword.
The difference is in mindset of the person querying the terms (in generic terms - the searcher is focused on anyone offering widgets to fulfill their need, the brand - they are focus on you).
In PPC circles the object is to spend less to get more... more sales rather than more traffic.