From my experience, stay as close to the team hotel as possible. When I went to the Houston Bowl we stayed quite a ways from where the team and most of the fans were staying. It didn't feel like a bowl until gameday. Bowl atmosphere can get lost in larger cities. With a city like Shreveport you saw a Cyclone fan around every corner. The atmosphere just felt more festive, more like a bowl game should.
Long story short, stay as close to the team as possible. You'll get the full bowl experience that way. Don't look for a hotel that is $20 cheaper each night, you'll be disappointed (and have to make that up in cab fare anyway).