The Adwords Analyzer is your help of finding related keywords and analyzing them in terms of how people search using those keywords, and how much competition there is for the keywords at Google. This software makes use of the Overture keyword tool to prepare its list of words to find the number of monthly searches. However, with Overture, keyword counts can be vastly over-estimated in some cases (perhaps due to webmasters using Overture for their own research). Sometimes, keyword plurals and misspellings are bunched together. Consequently, the inflated values allow the keywords to increase the price for bids. Any software using the Overture figures can give you a very wrong idea of what users search for and how often.
You can tell which is a better keyword from common sense. The Adwords Analyzer like the Overture keyword tool queries Google to find out about the number of adwords campaigns that are run on each keyword. Google displays 8 ads a page. If the Analyzer tells you that there are less ads for a particular keyword, you can bid on that word for the minimum 5 cents and still be on the front page of Google. You can also use the Overture figures to see how the level of competition for each word. The Adwords Analyzer software queries Google search engine for its results.
The Adwords Analyzer update introduced a time delay when you are querying the search engines. With this, Google has now become more respectful than it previously was, and this version may be much safer to use than previous one. With the Analyzer, you can now decide which Google Datacentre to query for the number of Adwords campaigns. For example, if you live in Spain, and carry out a query, you may only get 2 - 3 campaigns running on Google. However, if you are querying in USA, the same keyword can have 50 campaigns. Adwords Analyzer allows you to change the default Google "query station" from www.google.com (with its localization filters set to Europe/Spain) to www-sj.google.com (which does not filter the results for locality). With this url, you can see what American webmasters see, with the sense that the numbers of Adwords Campaigns are right.
Another feature of the Analyzer is that you can import a keyword list from a text file. This helps you carry out your research on Wordtracker or Nichefinder first. Creating a smaller keyword list to run them through Adwords Analyzer helps you prevent the over-use of Google querying words you are not interested in. The Adwords Analyzer tool is a huge time-saver.
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