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With the new Google Instant, results are now streamed live as a user types. If a user is to pause for just three seconds, the ads shown count as an impression. If your Click-Through Rates start to trend downward, it's because Google Instant is skewing your impressions upward. So don't pause that ad just yet. The solution is to use long-tail keywords in order to keep your impressions highly targeted. A long tail keyword is something like "Northwest Suburban Web Design" while a short tail keyword would be just "Web Design." An explanation from the Google AdWords Blog:
Although Google Instant doesn't change the way ads are served, ads and search results will now be shown based on the "predicted search." For example, if someone types "flow" into, our algorithms predict that the user is searching for "flowers" (the predicted search) and therefore display both search results and ads for "flowers". However, if that user then adds the letter "c" to the query, our algorithms may predict that the user is searching for "flowchart" and show the corresponding natural and paid results for flowchart.
Source: Google Instant: A More Innovative Approach to Search