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[edited by: goodroi at 1:18 pm (utc) on Jun 12, 2013]
[edit reason] per author's request, added question to the community [/edit]
But what we still do not know is whether the ad on the #1 would get the same percentage of clicks as if it would organic position #1 if there were no ads for the same query.
Why should Google pave the search results with ads above the organics, if they wonīt convert?
Whilst ColourOfSpring has posted a link to a study on clicks in one of his message ten or so posts above, showing 2:1 ratio of clicks to Adwords vs organic, it is worthwhile bearing in mind that this study is done by a company selling Adwords campaign management and Adwords management software. The study is based on their clients only, and we do not know how well their client's sites are SEO-ed and where they rank in organic for the same queries so I would be a bit cautious about their conclusions.
Basically, you can either target phrases that no one buys ads on - they won't get all that much traffic, but put enough of them together AND find other traffic sources, and it can work. Or you can buy the ads. Sorry, folks, but unless there's a huge outcry from consumers and/or governments about sneaky ads, nothing will change.
ETA: she also noted that maybe clicking the ads explained why Google's results had gone downhill, and told me later she preferred Bing's
[edited by: goodroi at 5:52 pm (utc) on Jul 3, 2013]