How is Pay per Click Ad Position Determined
Because getting click-throughs is largely a function of your ad copy, your copy quality and your bid price are tightly connected. Which is to say that your copywriting and your ability to create ads which inspire clicks leads to a lower cost per click, higher ad positioning and more sales leads.
Take the time to write compelling ads. Track what type of content produces the most click throughs. Adjust your bid price down and keep an eye on your overall cost and the number of click throughs you are getting.
By the way, Yahoo will be moving to a hybrid system shortly, so across the board, ad placements will not simply go to the highest bidder.