So I'm trying to do adwords for local search terms, which have a low CPC like .05 Lets say for example "blue widgets orange county" Now I activate my campaign and type in specifically blue widgets orange county, yet the ads that show up are all just "blue widgets" which have astronomical CPC. Is there any reason for this?
Yep, it's EBM (expanded broad match) at work. The short version is Google has decided that broad matched terms with high bids should show for more queries. I touched on this subject in a recent post: How Google Suggest Changes Paid Search. The part specifically related to your question: