Paul Benetis Dot Com

I am running an Adwords campaign for one of my sites to drive some traffic to it. The keyword I am bidding currently has no competition, it is in my ad, and all over the place on the site. Since my ad is very relevant to my site and there is no competition for that specific keyword, I was assuming that my cost per click will be very minimal. I learned that Google doesn’t see it that way.

I started out bidding .20 per click because thats what I needed to in order for the ad to show up. I thought that was a bit pricey considering I had no competition. Either way, I had no choice. After not even 20 minutes, clicks started coming in and my CTR was very decent. So I lowered my max bid to .10 which was a relief because paying .20 for as many clicks as I was getting, was becoming too expensive. My CTR kept steady and I still had no competition. I decided to drop my bid again to .05, which lasted for a good hour until Adwords raised my minimum bid back up to .10.

This is where I am at a loss. I don’t think that with good CTR and no competition I should pay more than .05 per click. Google is not making much money from this keyword so why not let me pay .05 so they can at least get something instead of nothing. I am not sure high my CTR has to be in order for minimum bid to be at .05 per click but when I am the only one that is displaying ads for a certain keyword, I think Google should give some leniency.

Am I wrong? If I am I would like to hear some feedback about this.