[nscalf]

From my experience with adwords/fb ads, this is not normal. The reason the cost is so high is because they're targeting ads to things like "bass" instead of "learn bass from scratch" in Sacramento, CA. The more specific you are, the less competition and the easier to target and win on keywords. The tough part is that being a strong force in the Sacramento, CA Bass market for new players from scratch is not a billion dollar idea.

[GordonS]

Sometimes, more specific actually means more cost - in B2B, I've seen roughly $15 and $7 CPC for heavily contested keyword phrases, and know of a competitor that bids over $30 CPC for a particular phrase.

A slight aside, but although it's definitely market forces at work, I'm certain Google inflates CPC prices before those market forces take hold, forcing the hand of smaller players.