One of the accounts I manage had seen a CPC increase from .10/click to .50/click (6 keywords) to 1.00/click (4 keywords).
So I took those same 10 keywords to two other accounts, set up a highly optimized page on their sites (super high quality), and created an optimized ad to point to those pages.
Result?
Every keyword was inactive unless I raised the minimum bid to .50/click (6 keywords) to 1.00/click (4 clicks).
No matter how I changed the page or the ad, same result.
So what does this tell me?
Google has just flat out raised the minimum bids on keyphrases, but instead of going from .05/click to .10/click across the board, it's dynamic, based on the individual keyword.
Ex:
widget = .20/click minimum (regardless of quality)
widget rentals = .40/click minimum (regardless of quality)
widget apartments = 1.00/click minimum (regardless of quality)
widget houses = 5.00/click minimum (regardless of quality)
widget real estate = 10.00/click minimum (regardless of quality)
I use the real estate example only to show that the keywords are related.
In other words, I think that everyone bidding on "widget real estate" is now bidding 10.00/click as a minimum if they want to play. You can't improve your quality and get to 9.90/click - it's impossible.
Anybody else buy this theory? Why or why not can you prove this? Should we post some real world examples? Ex: atlanta georgia real estate = $10.00/click minimum