In the past four months, I have come across a large number of articles talking about a strong increase in paid search costs for online marketers.
Most recently, a ClickZ.com article dated March 4, 2005 titled, "Will Click Prices Continue to Rise?" stated, that "At the Search Engine Strategies conference [in March 2005] in New York, there was a lot of buzz around the direction of pay-per-click (PPC) prices. The consensus is prices are high -- and will probably go higher."
I have worked with clients in some of the most competitive markets including nutriceutical, mortgage leads and real estate and have achieved strong profit margins even against as high as $10 per click bidding.
The key is understanding the dynamics of your business. I have written a three part article on "What to do as PPC Costs Increase?" It explains three primary strategies for you to use to embrace the increasing paid search costs and profitably conquer your competition.
Don't fear increasing click prices. Adjust your strategies and use it as a competitive advantage.
i am an idiot and i am lead by richard simmons