First, this has nothing to do with Google's profitability re:Adwords (the title was a bit misleading). Rather, it seems like an efficient supply-demand market

First, this has nothing to do with Google's profitability re:Adwords (the title was a bit misleading). Rather, it seems like an efficient supply-demand market is converging to a price point that renders his ROI to neutral-or-negative. I guess that indicates that the rest of the world is catching up in SEM... and it's time to search for alternative marketing channels. This should come as no surprise -- golden geese don't live forever.