1. Bid to be in position- searching on Google for your keyword, the first page of search results are going to reach the most people, what you want to do is position your ad in one of the top 3 spots. You don’t want position #1, because that position costs the most and doesn’t give you much more benefit than being in position 2 or 3. You pay less for these spots than position 1 and gain most of the benefits, by being in one of these top spots, Google Adwords system actually rewards you by charging you less per click. Google Adwords exists to make money for Google. If two companies advertising for the same keyword, and your ad pulls a 10% CTR and your competitor’s ad for the same keyword pulls a 5% CTR, then Google Adwords makes more money from your ad rewarding you by charging you less per click than your competitor!
2. Negatively qualify your ads- the problem with having an ad that has a great CTR is getting a lot of clicks, unless your traffic converts into sales, it’s hard to turn a profit on your Google Adwords ads. The key is to put words in the ad that discourage people from clicking on the ad, for example, if you have site that sells widgets that cost $10.00 each, then put something in one of the lines of text in your ad like ‘Widgets cost only $10.00.’ The only catch is that if your ad isn’t getting a very good CTR in the first place.