Does lack of AdWords ads indicate no market?

Here's a little interaction I had with a subscriber:

David: "Just a quick question please. What does it mean when I punch in a niche I'm thinking of going into and there are no..."NOT ANY" AdWords on the top or down the right side?"

Nelson: "Hello David,

Hope all is well with you. There are many types of evidence to indicate market viability and AdWords ads are only one component.

However you feel about a market possibility, the absence of AdWords ads may indicate:

1) the subject matter is too exclusive...could be a sub-niche.

2) It's a new cutting-edge area.

3) It's just not economically viable (advertising cost high, product price cheap or priced out of reach).

Still, I have a philosophy that goes, "No market is ever too small" as long as you know there's a rabid demand for your product/service.

Since AdWords ads are only one component, you may also take into account 2 other crucial evidence:

1) The number of Internet searches performed on the keyword per month: I remember reading somewhere a bare minimum of 100 searches per day to indicate a market. That's 3,000 searches per month. Use the AdWords Keyword Tool to get your numbers.

2) The number of search results: minimum 30,000 according to WordTracker’s free keyword tool.

To make up for the perceived "small market size", you have to:

1) think broader to cover a larger market base e.g.

sub-niche = making the first impression
main niche = dating

2) Consider markets of overlapping interests:

1st sub-niche = making the first impression for women
2nd sub-niche = making the first impression for men
3rd sub-niche = dating gifts, romantic gifts
4th sub-niche = cosmetics for women

Please read this post which explains the difference between market and keyword research."