Is there a sweet spot in the AdWords lineup? It seems like maybe if you're in the top 4 you'll be noticed whether you're #1 or #4. Does that seem right to anyone else? Optimizing bids for #3 might make sense if that's the case.
As an avid reader of this site for the past couple of years, I've noticed that opinion on this subject is truly all over the map. I think the answer may well be different for each advertiser. At the very least it seems pretty clear that there is no single 'correct' answer.
Tonearm, I think you might want to scour this Forum for past posts on the subject of monitoring position as it relates to ROI, and so forth. There is a goldmine of info here!
AWA
Then there are those markets that are impossible to stay on top at $10 clicks and going against companies that seem to have endless budgets. Even with lower budgets, my ads show up anywhere between position 5 and 25, and the profits far exceed the click price.
So my experience is that if you can afford the top first page positions, then go for it. If you can't, google does a great job of budgeting and giving you some high exposion to get some sales.
Overall, TEST TEST TEST! and TRACK TRACK TRACK!
KG
I get better conversions on one network over the other sometimes I notice, so it is definitely worth trying them both. Overall they are both very profitable, just one may make you more or allow you to spend less.
Then there are the second and third level ppc. I have had success in Findwhat with certain markets, yet the profits were mostly in newsletter and sign up type campaigns. Direct sales seem to have lost some quality as the ppc fraud begins to rise. Then there is also Enhance and Kanoodle which have been said to be just under Findwhat. Be warned, people slander any ppc unless it is Overture and Google for good reason. If you decide to use these smaller ppc networks, I would first master Overture and Google, then consider them, or else it will be like throwing money away.
Good Luck
Keyword Guru