Lot of legitimate reasons for keywords to increase in price. Much of it has to do with competition and new players entering a market. The popularity of AdWords and of using online as a way to advertise means more businesses are putting money into Google.
Clicks are usually not cheap on AdWords, but, since they have an auction system, it depends on the keywords you're bidding on. Using longtail or local keywords, for example, can help you have a lower CPC in some cases.
So, it all depends on your niche and on the strategy you use to define your keywords.
Adwords is more expensive than others, but you can still get cheap clicks, ie .05-.20 if you get good keywords, have a high quality score, CTR + other metrics. If you focus on a few campaigns at a time and monitor things like CPA and CPC you can still have some very profitable campaigns.
AdWords is expensive, but it can be optimized. Overall the ROI from AdWords can be positive but it takes a lot of reading and testing. There are other better, solutions.
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