Does anyone know what what is keyword analysis is all about?

Keyword Analysis is the starting point and cornerstone of search marketing campaigns.

Keyword analysis helps to increase conversions, find new markets, and optimize spend, but it requires time-consuming examination and decision making. The WordStream Keyword Analysis Tool takes the analysis of your website keywords a step further by not only analyzing your keywords, but also suggesting actions and automating your activity for the best efficiency and results. Do you really want to look at spreadsheets and graphs for hours a day every day? And after that, what comes next? WordStream eliminates this time waste, streamlining the process of analyzing keywords and prioritizing actions to greatly improve your efficiency while simultaneously improving your PPC performance.
the importance of keyword analysis

Marketing is inherently analytic. Field-testing marketing outreach and performance is key to optimizing budget allocation and market reach. Search marketing is no different, and since keywords dictate your entire search campaign, keyword analysis should be your primary focus. Analyzing keywords allows you to:
Optimize Spend: Distribute more budget to successful keywords and eliminate wasteful spending on those that aren't producing results
Increase Conversions: Identifying and focusing on well-converting keywords is good for conversion rate optimization and return on investment (ROI)
Eye Trends: Knowledge of keyword search frequency provides insight into market behavior which you can apply to multiple aspects of your business
Prioritize Your Time: Keyword performance guides campaign importance--spend your time optimizing areas that have the biggest impact on your bottom line
Find New Markets: Use keyword analysis to expand your long tail efforts and discover more specific keyword queries and corresponding warm leads

Keyword Analysis is a reporting tactic to help solve the age old question "What is my audience searching for?" There is a stark difference between what your company provides and the "keywords / keyword phrases," that potential clients are searching for.

As an example, consider the owner of a medical spa. He may optimize and build keyword phrases around technincal in-the-industry terms like "Intense Pulse Lighted Therapy Treatments," when in reality your customers are searching terms like "Laser Hair Removal." He is optimizing for phrases that are not the most popular search terms that can have the largest impact on bottom line. Sometimes being an expert in an industry can work against you if you forget that many potential clients are not hip to the "technical industry terms." Keyword analysis is the art and research of finding this gap and getting to learn more about your customers search patterns.

There are also other types of keyword analysis: keyword density analysis, Keyword Competition Analysis, Keyword Stats Analysis, etc.