I have been advertising with Google Adwords for 2 years now and the costs per click for many keywords is getting unfordable. I have seen some keywords increase by 300% or more and it's getting to a point where I can't make money on these ads. Is anyone experiencing the same?

Are you referring to the adwords' estimates for traffic and max CPC?

Those etimates are nonsense! You should enter a max CPC that you're comfortable paying and then see how many clicks you get.

Also, spend some time to learn the different matching options adwords has (Especially negative matching).

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I AGREE!

For some reason when I do my affiliate marketing, I ONLY get sales from Adwords. I don't know why this is, as Yahoo has some good traffic as well.

I know the exact reason

CLICK FRAUDS

Adsense people get together and click on each others ads...Thats why people dont select certain areas...

I think that these so called Adsense click rings are something of the past. Any webmaster caught doing this, and they will get caught, will get expelled from the program for life. Who would want to cheat other webmasters anyway out of their hard earned money which they are spending on advertising on Google.

LOL,

and you guys may be wondering why google is a multi-billion dollar business

SEM is not for kids. There are companies spending millions a year on it. I even read somewhere where lawyers in the US are paying as much as $30 for a keyword for a certain kind of disease. Why? because if they sue the company/hospital and win, the millions they will win will far outweigh the $30.

Bottomline: If you are in it to spend $20/day, forget it. Your Ad will feature but perhaps once or twice a day. Serious companies should look at a minimum of $100/day budgets. At least, that is what I tell my clients.

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It’s also worth trying to really do a research of what keyword phrases people actually use for your product/service and you need to find a niche among those in order to keep your cost low.
I don't want to spend more than $3 per a click and even that is a lot, since people search stuff by sometimes the weirdest terms, meaning cost per click can be a nickel. However, if you really want to target specific group of people you will need to spend some money and time in order to see what works for you. In addition, it’s an ongoing process anyways.....

let me tell you why there are so many click frauds. you go on a website, you appreciate its content so to say thanks to the webmaster you click on his ads and then dont even bother to look at the site you are going on. a waste of money for people buying these ads. dont pay per click, per per impressions

Haven't you read tutorials about making money by clicking on google adsense. Everyone wants money and what could be the easiest way than point and click.
It's simple, suppose we are friends, you click at my site and I will click at your site. We both get google money. Who cares what's happening to the person paying for stuppid clicks?

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