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we know what the margins are, so if we aren't profitable, i am pretty sure the ones paying more aren't - is it just buying eyeballs?
certainly the companies prepared to pay more are much bigger than us. this is a trend we have seen every year, but it seems 2008 is the biggest price hike by far.
perhaps it is just january ad blitz. we are going to retry in a few weeks.
anyone else care to share?
You can find the study on EF's blog.
Only advice I can give:
Increasing your CTR on Adwords will decrease your CPC and should help out with ROI as a result.
Untill then, good luck and if you do retry towards the start of March, please keep us updated.