It’s a general perception that: “ Adwords Ads are ‘just a bidding game’, you need to bid higher than competitors to achieve top ranks.”
This is totally WRONG!
Although bidding is one of the factor to decide your Ad rank. But it is NOT THE ONLY thing.
Ad rank is decided by Bidding + Quality Score.
Now what is Quality Score?
It is determined by the keyword consistency among a search query by user on Google, your Ad copy and the landing page of your website.You need to ensure that you have the right content on landing page corresponding to what you advertise, and what users search for.
If the quality score is good, your Ad may get higher rank with lesser bid.
And you save your Advertising dollars still achieving higher ranks!