Google has a very important lesson to learn on how your four basic PPC settings influence behavior of your ad impressions, clicks, position or CTR.
Check out this interactive page: adwords.google.com/select/sliderprimer/Overview

As you see: budget, CPC, keywords and geo targeting are your 4 key elements to adjust your ad impressions, clicks, ad positions and CTRs to your liking, depending on what your ad goals are.

Next time we are going to delve into the crème de la crème of Google Adwords optimization using the immense power of Google Analytics.