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Sounds familiar, but I am not familiar with that one. If the company is not being upfront about their traffic, then it might not be too reliable a PPC provider.
The big question is - are you tracking your ROI on your PPC campaign? There are some great tools that allow you to do this for your sites. Once you have some tracking in place, it is much easier for you to see if your product / niche / service will work for a particular PPC search engine.
Cheers, and feel free to use the site search [webmasterworld.com] if you wish to find something in specific. Also, check out the Overture Pay Per Click forum [webmasterworld.com] for lots of great info about PPC advertising.
We also have a forum for Google Adwords [webmasterworld.com] which is bigger than Overture in terms of reach / # of advertisers, etc.
I have found (and proven) that at least one of them was sending their clients a lot of traffic (more than 90%) from obscure directory categories (not search results) and spyware (again) AS IF it was search contextual (not searches).
To prove it, I had provided them with a specific link to a landing page and after analysis of the logs, it became immediately very clear that they were deceptive in their claims and practices. Approximately 10% of the traffic was coming from their little meta search engine, the rest came from "partners", none of which operated search engines.