How much does Google adwords cost increase year to year?

[JerrodDavid]

I am trying to find about how much the cost of Pay-Per-Click increases year to year? If anyone can point me to some data/study that speaks to this I would appreciate it very much.

[AmericanOutlets]

Adwords works on a bidding system, where AdWords users bid on specific keywords and the highest bidder gets the best placement. Costs differ on a keyword-by-keyword basis, and go up and down based on the market. Google itself doesn't charge any fees on top of the per-click payments.

[EGOL]

I have been using Adwords since the service was launched.

At first costs went up rapidly as more competitors arrived.

From what I have seen costs are driven more by the number of competitors entering your niche, their level of expertise and the discount at which they can obtain their merchandise.

Then when they introduced quality score the costs for many people actually went down.

If you are not expert, expert at quality score then becoming an expert could decrease your costs next year by making your ads more relevant, blocking negative keywords, etc.  Also, increasing your conversion rate could allow you to increase the amount that you pay per click and allow you to capture more sales.