After several emails from readers and spotting Jeremy Mayes post I have learned of a bug with Google’s new AdWords quality score algorithm. Google AdWords Adds Quality Score Column & To Improved Quality Algorithm from Wednesday warned us of the new changes coming but apparently there is a bug that makes good performing ads prices spike through the roof.
Many are seeing high quality ads and keywords hit with incredibly high CPC prices overnight. Google replied to several advertisers telling them they are aware of the “temporary issue” and “they are working to resolve it as soon as possible.”
Postscript: Google posted their official word on February 20th.