First of all, he beat Giuliani. He beat him bad. Rudy Giuliani is a candidate that has had more media face time, and is known throughout the United States. Giuliani didn't campaign much in Iowa because he, like Paul, is going to put his eggs into the February 5th basket.
Secondly, Ron Paul got a lot of support in Iowa - the corn state. The state where ethanol and alternative fuel is a big issue.
"Please remember that Iowa's entire economy revolves around corn. Ron Paul has consistently voted against a corn subsidy for Iowa and because of this it was a foregone conclusion that it would severely hurt him. The fact that many Iowans voted for him (seemingly against their own economic interests) is a testament to the fact that people out there are truly getting the bigger picture. I am counting 10 percent of the vote to be a major victory."
From: http://www.dailypaul.com/node/20501
Please keep in mind that this is the first state. Only 49 more to go. Ron Paul is expected to do better in the upcoming Wyoming and New Hampshire primaries.
