Does the correct spelling of a keyword trump the most common spelling?

[limoshawn]

I'm working on a keyword using the common spelling.

Correct spelling: "Redgreen widget"
Most common spelling: "Red Green Widget"

The common spelling is searched for at least a 1000 times more often than the correct spelling so obviously I want to rank for the common spelling. A site that outranks mine for a search of the common spelling is optimized for the correct spelling with no actual occurrences of the common spelling on site.

So, am I missing the boat by optimizing for the common spelling because google disregards the common spelling in favor of the correct spelling?

[Robert Charlton]

In my experience, Google doesn't disregard the common spelling. If a misspelling is common enough, Google will return both the misspelling and the correct spelling, and it will suggest both as well.

A site that outranks mine for a search of the common spelling is optimized for the correct spelling with no actual occurrences of the common spelling on site.

It's likely that the site is ranking on the common misspelling because of inbound anchor text containing the common version.