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Seriously? Is there really no way to do this? Grrrr...
Campaign #1: Target = United States, Bid = $0.50, Ad text = General, Keyword = Blue Widgets
Campaign #2: Target = Boise ID, Bid = $2.00, Ad text = Boise specific, Keyword = Blue Widgets
In everywhere but Boise, your "Blue Widgets" keyword should pull from from Campaign #1, while in Boise... your Campaign #2 version should be customized enough and at a high enough bid to win out in that market.
What was their rationale for requiring two separate accounts?
I hope you're right ... and I would hardly be surprised if level 1 customer support didn't know what they were talking about .. still would leave that mystery though, in that case.
So called and asked why - this is when I was told I could not have two prices for the same keyword, in the same campaign.
Oh, I was suggesting different campaigns... being that the targeting is controlled at the campaign level.
You could, in theory, have the same keyword at different prices in different ad groups within the same campaign... but, you couldn't target them differently.