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About 5% of searches are on single keywords, 35% are on two words (predominantly keywords), and 60% are searches on multiple words (including keywords).
Is such a breakdown par for the course? If it is the norm, it should be borne in mind that I don't pay for keywords. Deviations from this norm might then be explained by the types of search people conduct on engines such as Overture - if they are, in fact, different to those they would conduct on other engines.
Another consideration when assessing search types would be a site's subject focus.
The approach I usually take is to use the a keyword tool like Wordtracker or the GoTo tool([smallI refuse to call it the Overture tool![/small]) to identify top level phrases. Then, once the pages have been indexed, I regularly track all the secondary variations of my targeted term that show up in the log files.
If you get into a habit of running position reports on the phrases found in your log files rather than the phrases you want to rank for, you'll end up stumblimg upon some very high quality, and often overlooked terms.
The ones I try and keep an eye out for are the terms that show up regularly even though I'm not ranked anywhere in the top 30 for them.
If you are getting 10 visitors a day hitting your site for a term you rank 57th for, you can quite often turn those 10 visitors into 50 or 60 per day just by making a couple of adjustments to the particular entry page.