A product or service is a categorization of things that are sold online. 
For a product or service you are trying to market, keywords or placement 
ideas can be retrieved from the TargetingIdeaService or the "keyword tool". 
These only include products which are sold or services which are available, 
nothing else.

A vertical is a more general categorization which tries to place web sites 
in a hierarchy of topics. Based on the topic of the website in the display 
network, you can bid to have your ad show. These could be anything from 
products and services, to world localities or demographic interests(womens 
vs mens) or scientific interests. 

Think of it like this:

You can get help on keyword or placement ideas for a product or service.

But you can bid on a specific vertical.

For example:

You are selling running shoes.

You would get ideas for specific keywords or websites for placement using 
the Athletic Shoes product.

You may want to also place ads in the Hiking & Camping vertical. You may 
also have good luck in the Mens Interest and Womens Interest verticals. Or 
maybe you want to target pages that have something to do with Brazil 
because the World Cup is going on and you have found that your ads perform 
well.


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