Cheaper clicks but my conversions are way more expensive…

I have a general PPC theory question I’d really appreciate feedback on:
My company was running a single Ad Group with about 50-80 terms. We set each term to broad, exact, and phrase match and bid fairly high (from 4-8 dollars max CPC) on the terms. This group had a single text ad.
We then paused this campaign. We pulled a number of more specific variations of the terms, and then broke up the Ad Group into several smaller groups that were better targeted and more closely related. We set all these terms to broad match. We created specific text ads for each of these more specific Ad Groups. We bid very low (from .50 cents to 1.50) on these terms. We’ve also monitored incoming traffic and set several negative keywords.
The result has been that impressions and clicks have spiked dramatically (roughly 10 fold), costs per click have dropped dramatically (from almost […]

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