However, Daddy Google has some bad news for you: minimum bids. You can have a wonderful, highly relevant ad on a wonderful, highly relevant keyword with all your "quality score" ducks in a row in terms of Google... In fact, you might be the ONLY advertiser on that keyword, and have a click thru rate upwards of 10%, and yet
Google will automatically set the minimum bid for a keyword to some pretty high numbers. I have seen upwards of $20.00 for the CPC on bids for which everything is in alignment, and the quality score is fantastic...
Clearly "behind the scenes" Google has some algorithm to cost you A LOT of money thru it's minimum bids. (And of course you can't see what the true minimum bids are (and I am NOT talking about the nonsense you'll see in the Keyword Planner).
The Good News
However, I have found that if you systematically lower your bid... you can squeeze Google down to a more reasonable price. So notch it down by 50 cents or less over a few weeks, and you can discover what the true minimum bid is: the least you have to pay for your ad to show reliably.
Here's the propaganda about "minimum bids" from Google - it's only a half truth - here.
And here's Wikipedia about "monopoly pricing" and "monopoly rents."
Is Google a monopoly? You decide: if it looks like a duck, and acts like a duck...