Tam is absolutely correct and can be easily shown with simple math, which he did, yet few people seem to realize. Google doesn't care how much you bid, it's how good the ads are, their quality. That's the whole idea behind Quality Score. The cream will rise to the top.
How do you do it? Again, Tam provided the answer: you create ads that get higher click rates. Most of the QS calculation is based on CTR. You need to figure out the wording in your ads that will make people notice and want to click on them. Sell the sizzle, not the steak.