So here's an interesting bit of info and myth I'd like to bring to light. If anyone has more accurate information, please share! :)

For the same keyword phrases "green widgets," the first campaign was created with a bid price of $1.00 and went online. A second campaign was created a few months later with bid price of $1.50 and remained offline.

According to a Yahoo! rep, since the offline campaign's bid was higher than the online campaigns bid, the offline campaign overwrites the online bid causing the ad not to appear regularly until:-

1 - the offline campaign was deleted
2 - the bid was lowered for the offline campaign under the online's bid

That sounds ridiculous to me since offline means as good as IGNORE THIS CAMPAIGN! Why should an offline campaign affect the online campaign when its on PAUSE??? :confused:

Do you mean to say that you were able to get the keyword "green widget" appear twice in your "Manage Sponsored Search". One online created first, and later one more in offline campaign, but as per my experience I was never been able to get two keyword live in my account, if one is already live, the later keyword will be declined on the basis of "duplication".
That sounds ridiculous to me since offline means as good as IGNORE THIS CAMPAIGN! Why should an offline campaign affect the online campaign when its on PAUSE???
I couldn’t agree any more with you, its really ridiculous they consider offline keywords bid.