yup. a higher bid usually means a higher placement, a higher placement usually means a better CTR which in turn means Google earns more, it's easier to go in high and drop down than it is to go in low, let a poor history establish itself and then try and move up.
The main tip I have is that negatives are an often overlooked area that can rocket a CTR compared to other advertisers, e.g. you have 500 impressions and get 10 clicks, that's a 2% CTR but if you can remove 250 impressions that aren't really targeted enough then you get 250 targeted impressions and the same 10 clicks but your CTR is 100% better at 4%, now if your competitors aren't doing the same with negatives and assuming you both have similar CTR's initially you should rank better for the same bid or end up having to bid less to stay where you are.
Therefore regularly check your negatives and hunt new ones down, always be looking to laser target who sees your ads, you'll then find some awesome click through rates, sure the traffic may be low volume but your CTR's could regularly be in the mid to high double figure range.
regarding when to pull a campaign, in general you should really be able to acheive at least 1% conversion on most things out of the blocks if an adgroup is set up ok so if you haven't had a sale after 100 clicks it's time to look at the risk v reward of the adgroup (and check the tracking) it's hard to give an arbitrary pound value as a cut off point as £100 of clicks for a loan campaign will be minimal yet for a travel campaign it will be lots of volume so you need to weigh up the cost against what it could earn if you get a sale but generally if it's gone 100 clicks with no action you need to give it some more love and attention and maybe refine it or swap merchants, then if it's still not working it's time to bin it
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yet if caught out.. you'll be in the wrong and treated like you did it on purpose or at best you'll be treated like you are the incompetant one lol

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