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that might mean an advertiser would be more comfortable paying too much for the keyword, thinking that the target market for the product and / or reach of the Overture service is greater than it actually is. :)
I've read here before that for competitive keyword(s), take the number and divide it by 2 - at least to guestimate. Hope this helps.
Could these numbers be inflated when people use software such as Web Position Gold?
When running the reports, the software goes out to each site to see where a certain web site comes up under a specific keyword or phrase.
Do the engines and directories view this as an acutal hit to that keyword/phrase (thus possibly inflating the numbers from the software programs people use for ranking reports)?
This can be pretty misleading when people are trying to position their web sites (other than just isolating the categories whose biddings are very competitive)...
Thanks for the thoughts and feedback...
For example, one of the keywords I go after also has a lot of dentists' sites focused on the same keyword. One dentist has the keyword and his city in his URL. It's a city most people have never heard of that I'll call smallTown.
When you check the Wordtracker and Overtures stats, there's always a lot of searches for "keyword smallTown". In fact there are many more searches for "keyword smallTown" than there are for "keyword New York" or "keyword Chicago" or "keyword Phoenix".
It's obvious the numbers just show this dentist checking his position a lot. Either that or his small town has some kind of dental plague going on, which seems less likely. So if this one guy can influence Wordtracker and Overture results significantly, imagine what impact thousands of web site owners, if not tens or hundreds of thousands more, can do to search statistics where it may not be as obvious to tell that that numbers are inflated by position checking.
So I do check the results for keywords in both Overture and Wordtracker, but I also take them with a grain of salt, especially for highly competitive terms. I think for highly competitive terms that the number of requests for those terms becomes a self-fulfilling prophecy based on the number of people going after those terms and then checking on their own web site positions. Plus I think it's important to factor in that there's always people who are going to devote some time each day to searching for their keywords and then clicking on their competitors PPC ads to try to drain their advertising budget. This means that the actual number of potential customers searching for competive terms may be much smaller than the actual number of reported searches.