At The-Successful-HomeBusiness.com they have seen a huge jump in pricing for keyword bids for Google Adwords. For the same keywords with Yahoo, people are spending about a third of the price. This is in part due to the "Google Smack"... where they are working to get rid of a lot of the scam type offers that are being advertised out there. I personally have noticed a huge increase in pricing with Adwords over the past couple years. In a time frame of just six months, some keywords went from being profitable to getting taken off my list of good keywords to use. Anyone else notice this?
Its tough to say that CPC prices are jumping. They are, but it depends on the profitability of the niche. If a given keyword can turn a 1000% ROI, people are going to compete to the death on that keyword and drive up the prices. If a keyword doesnt convert well or isnt easily monetizeable, the CPC should not increase much.