To price or not to price

What would be your adwords strategy?

[moftary]

First of all I am a very adwords newbie (few months), I actually could not think that I would pay for advertisements one day :)

One of my websites competes in a small niche market. I usually start with a large list of keywords grabbed from google adwords, #*$! and other locations, then getting my keywords list smaller.

My keywords dont perform well, yes I have conversions, and yes my ROI is well, but I am sure that this is not the best I can get (although it's a small niche market, again).

What do you suggest me as a good adwords strategy, to list the price of my product/service in the ad with setting its CPC high, or not to list the price and setting its CPC low?

I tried the first strategy and that's what worked for me. Using the second strategy I found that my ads dont show at all (very small impressions). Shall I try combining the high CPC without listing the price and risk my ROI, or what else do you advise?

Sorry for the long message.

Cheers,
mOftary

[DavidDeprice]

Without any specifics, no one can tell you. I run what's currently a number 1 discounted webstore for downloadable software. I use Download.Com as my source for 30000+ keywords - I simply bid on software names if they fit in a category I am promoting. For instance, to get any decent traffic for DVD Ripper, you'll have to pay about 50 cents a click and conversion will still suck (hence, I leave my foolish competitors bid on this an other generic terms). But, I can bid on names of DVD Rippers (there are tons of them listed at Download.Com), pay 5-7 cents per click and my conversion is very high (after all, a person looking for "Ramada Inn in San Francisco area" is a much more valuable searcher than the one who searches for "affordable hotel in Northern California" or "Bay Area Hotels").
As long as you keep using Keyword suggesion tool - you won't think outside the box and will be forced to pay high fees for poor quality keywords.