Your AdWords’ Targets: Maximum Number of Clicks at a Lowest Average CPC.
To achieve these targets, you must prove to AdWords’ scoring algorithm that for a given keyword, your ad is the best, of all.
Meaning, an attractive MCPC and very good relevancy, as shown by CTR.
Ultimately, it all begins and ends with CTR.
Your AdWords campaign’s CTR depends strongly on the Average Position of your ad, and vice-versa.
Put simply, the higher your ad is positioned, the more visible it is; the better the chance of receiving a click. When positioning your ad, the System relies heavily on your MCPC.
There are other factors affecting the positioning; like Ad Group’s history, overall campaign’s performance, etc. Being an intrinsic part of the AdWords, and unknown to anybody outside of the Google’s inner sanctum, can’t be quantified. Hence, these factors are omitted here.
Naturally, having a well written ad helps enormously.
That’s why in Stage 3 you jack-up MCPC, in order to get higher Average Position for your ad. To be more visible and, hopefully, clicked on more often. In stages 4 & 5, you can identify formation of positive trends. In stage 6, you “decelerate” your run, by reducing MCPC. In Stage 7, you reduce MCPC even further, yet your Ad Group is performing strongly.
Not surprisingly. Its Vital Parameters are good… In the “eyes” of Google.From Stage 8 onward, you’re monitoring your AdWords campaigns. If at any time, you notice a significant drop of these parameters, specially in Clicks, do the “rapid acceleration” procedure again. In my experience, it had to be done in less than 3% of the time.
Your tolerance of the downward trends, is primarily determined by your available time
and money.

Here's your golden ROI with AdWords!