For my previous website I was averaging around $2.00 per click for a particular keyword.
I designed a better landing page and got a better domain, more relevant to the particular keyword and I let Adwords set my bid.
The first day, it set my maximum CPC to $3.50, which I thought was a bit steep considering, however would let it run and see what happens.
The next day my max bid was up to about $7.50
The following day it is now up to $15.00+
Is Adwords simply trying tot ake advantage of me, or have they simply got two customers who are targeting the same keyword who are both allowing Adwords to set their CPC, meaning that Adwords will just keep increasing each customers bid until one reverts to manual bidding?