By the way, does yahoo have a similar keyword tool?
So, based on the keyword tool, if im not getting many results or even "not enough data", is it safe to say that those phrases just arent being search on?
It can be a huge challenge when you're trying to market something that few users are actively searching for. This is where the content network can shine, because you can get your ads in front of people based on broader interests rather than specific searches.
I usually prefer to create separate campaigns for search and content, because the user mindset is different and you want to be able to adapt your ads accordingly.
[adwords.google.com...]
What you could do is:
1. Choose the more appropriate keywords regardless of search volume.
2. Add those into your account as a phrase or broad match variation.
3. Use AdWords conversion tracker
4. Accumulate some statistics
5. Run the 'search query report'. This will show you what words were actually searched. It's a great place to find negative and positive keywords.
6. The words not hitting your goals, add them as negative keywords.
7. The words hitting your goals and are not in your account, add them as keywords
8. Now that you have an idea of what is actually being searched for, revisit the keyword tool and use your most profitable keywords as a starting place to find new keywords.
In addition, you can have one campaign targeted to just your area. Since you've already choosen an area, do not use geographic keywords (i.e. don't use chicago plumber in a chicago targeted campaign) to start with.
If you want to use geographic keywords, then have a 2nd campaign that's set to the entire country and then use your geo keywords in just that campaign.