Will your target keep looking until page 3? Do you have lots of competition? Is your porduct or service high or low priced?, high or low margin? impulse buy? considered major purchase? B2B?
make up some scenarios and pretend to be your customer and try to find yourself. see what happens.
Is it worth it to set up an ad if you know you will not be in the top 8? If so, can you give some examples of where your ad ranked and how well it did?
If there is sufficient search volume, absolutely. I've got ads on the 3rd page and beyond that pull CTRs of 1-5%. You definitely get less traffic but it may be more qualified since whoever makes it down that far is probably determined to find whatever it is they are looking for.
One school of thought (and I attended this school, by the way) says: "Try it out and see what happens.".
Really, assuming that you're monitoring your results, you have very little to lose by setting up a test Ad Group, designed to put you low on the page. I'd be sure to carefully target the keywords to the ads, and to write great ads in the process.
Then set it running and see what you get in 'the real world'.
I have to say that I do love a good AdWords experiment!
;)
AWA