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Adwords Tip of The Day: Best Way to Lower your CPC (cost per click) ?
The best ways: Adwords is simple in theory. Bid high when you launch a campaign and target the first or second position. You will get more clicks (yes, more expensive) but you will earn more with relevancy, and quality score.
Once you have earned a higher CTR you will have some wiggle room to turn down the bid price without sacrificing your ideal position.