My question is Did Google make a change to its Content Targeting? During the first half of the month and in the prvious month we were getting maybe 2,000 content target impressions, then in the past few weeks we have been getting somewhere around 16,000,000 impressions. Now this wouldnt be a problem, but we are unable to increase our budget to what google says is max and therefore the increase in hits for content targeting is decreasing the number of ppc search word clicks which is really our bread and butter.

Not sure what's going on with the increase in clicks. Maybe someone with high traffic that is related to your business has just signed up to adsense.

Have you set a separate price for content bids? You'd want to keep it as low as possible.

Due to the many MFA (made for adsense) sites out there, I wouldn't recommend content targeting... unless you know exactly the site you want to put your ads onto, then you can specify the url for the content targeting ad.