"This validated my earlier finding that [search engine marketing -- by which I think they mean exclusively CPC ads] might not actually be a viable distribution channel for CloudFire."
No, it did not. It only proved that, today, you were not able to create a profitable AdWords campaign.
I can't bang on this enough: AdWords doesn't have a skill curve associated with it. It has a gentle skill slope followed by a 1,000 foot-tall basalt monolith slicked with ice, guarded by ill-tempered yeti, and governed under rules of physics different than the rest of the world which change constantly and cannot be disclosed to you.
For example, trust me on this: there is much, much, muuuuuuch cheaper inventory available for those keywords. (Check the content network. You'll be amazed.) The blogger just wasn't getting it because ahem it is not in Google's interest to give everyone cheap inventory when they could be overcharging them for worthless Youtube page views.