Dan Thies of SEO Research Labs has an excellent presentation available on
and the effect that this technique could/can/does have on paid
advertising campaigns. Few advertisers actually use the permutation technique
according to Thies, but it's certainly no secret. The basic concept is simple - you take a
list of words and work up every possible combination of phrase and exact match
bids. The result is a clear edge versus competitors (10-20% increase in
traffic)who are running broad matches. It also offers advertisers valuable data
on word order.