Should I lower my price until clickthru drops?

How do I achieve the optimum price for my keywords?

[phaze]

I'm advertising on a highly competitive phrase, but I have a succesful ad. So even though my average position is 4.8, my click through rate is maintaining at 2.4% even though I'm only paying a max of 0.20 cents per click.

Should I lower my maximum CPC until my click-through rate drops closer to the minimum of 0.5% to optimise my cost per click? Will google simply show my ad less frequently because I'm spending less?

And what are the best CPC/CTR combinations that you guys have seen for reasonably competitive keywords/phrases?

[skibum]

Its all a slippery slope phaze. If you're making the money you want to make at $0.20 then I'd stick with that. If your CTR drops to 0.05% then you'll lose 80% of your traffic for that term. If the conversion rate drastically increases you've made a good move. If it doesn't you're losing sales and probably profits.

There are some ads in the 4-5 spots that pull 5-14% CTRs so there is always room to increase CTRs by playing with creative. Might want to test some other ads as well if you lower the max bid price.