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I agree with Ferre here - niche type searches can really add up and count for a large % of your overall traffic. Also they are a good target for new sites - no point spending 6-12 months aiming high and making no money when you can use that incubation period to start build traffic as well.
City searches can be much better than state / county / postcode simply because people tend to be searching for local services, etc and as such they convert to sales much better too. That said, there are a lot of mass-generated content sites that try to cover every city in their target location with little content, which IMO isn't a great strategy.
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