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Quote:In AdWords, you're paying for every time your ad is shown when the keyword is typed into the Search box of Google. After touring AdWords for a few days, it became clear that in the hands of someone who is an expert, this would be a very powerful lead generation tool.

Here are the key take-aways from the research...done using keywords in AdWords...

The smaller the vendor the higher dependence on Google AdWords as their primary source of leads...
ERP vendors' keyword names spark stealth wars for AdWord positioning...
Guerilla marketing Google style...
AdWords are the acid test for positioning...

the following lessons were learned:

AdWords make you question your assumptions about who you compete with...
Acronyms are the albatrosses of AdWords...
Your competitors' keyword strategies become clear quickly...

full article: http://www.crmbuyer.com/story/47748.html

Good article.

Overall you don't want to get caught up too much on what your competitor is doing with Adwords. You certainly do not want to be caught up in a bidding war with them!

For getting quality hits, AdWords does remain without equal, although Overture is making some gains in this regard.

Quote:For getting quality hits, AdWords does remain without equal

It beats traditional banner advertising.  I think clicks from shopping comparison sites have higher conversion rates though.