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AdWords determines your ad's AdRank by its Quality Score (expected clickthrough rate, ad relevance, and landing page experience) in addition to your cpc bid.

Perhaps you had a low quality score (below 8), so Google requested a higher CPC to compensate?

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thanks for the input, yeah I think I need to do more "inbound marketing" before attempting adwords (display). I have a 4 to 6 quality score, and nothing is displayed unless the CPC is astronomical.

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