Lisiting vs adwords

should I compete

[tbear]

In january I uploaded a new site. I opted for googles adwords scheme among other things and got good results (3,600 visits - 400 unique, all qualified up to lots of e-mails and clients looking to spend LOTS of dosh).
Yesterday I noticed hits from Yahoo and discovered at last I'm nš2 in the lists for my kws. Nš1 is also a site of mine. When I opted for adwords I was the only one, now there are 5 or 6 depending on mix of kws. Mine is bottom.

QUESTION?

Should I try to raise my ad to the top or rely on my higher listing in the serps for hits. My conversion has been around 4.5 - 6 over 3 months. It could cost my client to raise the adword and I want the best value.
ANy suggestions?

[Brett_Tabke]

I'd trust in the serp. As long as you are listed there. People are going to back up and find you. It's like a prefilter on the users. Only those truely interested are going to click down to you on the adwords.