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But have noticed that Adowords does not seem as cost effective for niche terms than Overture due to their way of calculating keyword costs.
While on Overture generally the more niche (or unpopular) your phrase is, the cheaper it is, on Adwords, adding qualifying words does not reduce the cost (it does not tend to vary much from the shorter phrase and sometimes goes up!) - just reduces your hits (which in many ways is good!) by targeting them.
We get very few hits for each phrase, and are careful which ones we use because of their high cost compared to Overture. This is not a general observation on term costs, but relates only to say 3 word specialist phrases.
From my experience, Google is dramatically cheaper than Overture and far more searcher-friendly in that semi-off-topic places simply can't buy their way into the best slots.
I don't know how every keyword universe compares but I'm shocked that anyone would say anything nice about Overture in comparison to Google.
Unless you bid high enough your ad will only be seen when Halleys Comet comes around.
One some ad you get a minimum bid, this is due to the old adwords program and being fair to those paying for CPM instead of CPC. For the ads that don't have a minimum then you won't register because your likely to be on the bottom of page 10.
In the first few weeks of your campaign you have to be bold and be prepared to pay more per click than you want to. If you don't do this then you really can't get the full benefit of the ad. Once you get the keywords, price, cost per day, click through rate right then you will find your ad will become more popular and your cost will decrease. It's also important to get the creative right and make the landing point the exact point where your call to action is.
Try using square brackets for your keywords too, as an alternative, [keyword phrase] rather than "keyword phrase". Think of like a performance car, you have to tinker with it to get it working just right.