buckworks - 4:00 am on Nov 2, 2012 (gmt 0)
When I have a term where the client's page is already ranking high in the organics, I'll often run PPC on the term but use an automated rule to keep the ad lower on the page.
I find that if the search contains the client's actual brand name, CTR is strong and the CPC goes down to the point that it costs us very little to run ads on brand name searches. I am not keen on outranking a strong organic listing with a paid ad, but if the clicks are cheap enough I don't worry about it.
I do find that both the ad and the organic listing get clicks, although it's not my experience that ads convert better. Sometimes yes, but sometimes no; it can go either way.