First off, I found a keyword with lots of searches but absolutely no sponsored results for it, absolutely none. Then I place my bid at .10 cents and get some impressions. In several hours google says the bid increased to .20 cents, I check the page and still dont see any advertisers. This has gone upto $1 and i just deleted the keyword. This happens with almost all of my keywords. What can I do?
Learn how adwords works, The "no sponsored results" is a complete red herring. Choose keywords that are relevant to your landing page and pay attention to your quality score.
Just because you do not see any ads in the search results, does not necessarily mean there are no competing ads for that keyword. It could be several reasons why: advertisers have paused campaigns, or it's the time of day an advertiser chose not to show ads, etc., etc. There may be a chance there actually are no ads to display, but the chances of that are pretty slim.
I would rewrite your ads. The better you ads are the better your QS will be and the lower you CPC. When you are starting your campaign you need to start your bids higher and slowly bring them down.
Whenever you see "below minimum first page bid" it doesn't mean you need to spend more, it means you have a problem with relevancy or ad copy which will tank your CTR's. The bid increase alert has little to do with competition and more to do with you being penalized for not holding a solid CTR. Granted, you can spend more, and then it turns into a downhill bid war...but the correct way to fix the problem is continually run new ads and sculpt your keyword list until you have good quality scores and ctr's throughout. When you eventually achieve solid CTR'S and QS's you will actually spend much less per click than your competitors.
You should create more relevant ads.I would suggest you the following: 1 - Create multiple adgroups 2 - In each adgroup create at least 2 ads. 3 - You should have at least 1% CTR - Keywords that have 100 impressions and no click - pause. 4 - Divide your adgroups to search and content (the content give a lot of impressions and take down the CTR) Good Luck!