If you put a url in, are those the only ads that will ever be displayed. My understanding was that the mediabot will scan your keywords, description etc... and then serve. It seems the tool is only serving the url based ads. Is this correct? The reason I ask is because the ads displayed when you place third levels versus non (eg. widgets.bluewidgets.com versus bluewidgets.com/widgets) are completely different for a website I am working on. I will use third levels for them if necessary. I hope this is as clear as it sounds
I don't think it analyzes based on the url alone; if you plug in a non-existant url, you don't get any suggestions. I have no idea how it actually works, although I'd be interested in knowing...
A Google process actually looks at each page and matches the content to the keywords that people want to advertise. The content may be cached so it won't constantly be hitting one's site. This tool must generate create adsense ads as though it was your site and parse what it returns. If it does it this way, it would definitely be tricky.