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Most people don’t realize that the more money you spend for Google Adwords traffic in comparison to the Google AdWords ads in the positions below and above your ad, the less amount of  traffic that will come to you.
If you’re looking at it by percentages, ask yourself: If your sales could go up 20%, would that be good if (all things being equal) your cost per click expense goes up by 30%?   If this has in fact happened to you, congratulations!  You have fallen into the Google Adwords CPC spiral.  You have allowed the Google AdWords algorithms which determines the cost per click to add to the Google bottom line at your expense.  If none of this makes sense, it should at least be clear that Google is making a fortune and they are only going to make more and more in the future.
This is the hardest thing for some Internet Marketers to understand.  Google does not want a scenario where your sales drop 20 percent and the cost per click drops 20 percent as well, even though, if this happens to you,  you will have effectively brought down your expenses and surprisingly, your profits will double or maybe even  triple.
Never forget and always remember that you decide what you pay Google as well as the quality of traffic that comes from your Google AdWords campaign.  Follow the following seven solid pieces of advice and watch what happens to your campaign.
1. Stay out of the top three positions where the lowest quality impulse clicks are most abundantly found
2. Get better traffic by improving your CTR by improving your ad.
3. Being in position 4-8 can be more lucrative by bringing in the more educated and serious buyers and keeping that cost per click down.
4. Don’t be afraid of running the ad on the second page for higher qualified traffic. Remember, the game is to hit the perfect balance between price and position.
5. The higher the CTR you have, the more traffic you’re getting and Google Adwords rewards you for a high CTR by giving you a better position
6. By continually challenging your own ads with simple split test methodology, you can improve the CTR over time.  Let two ads run and keep slightly changing the one with a lower CTR in an attempt to beat the leader. This is not rocket science.  This can also work with keeping two and trying to beat them with a third ad.
7. Scan your campaign and pull out the lowest converting keywords to improve your overall CTR.  Don’t throw them away, just separate them into their own Google Adwords Ad Groups.
Keep the following line in your head till it makes sense without thinking about it...
SALES CAN GO DOWN and still profits can climb higher!

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