With Pay Per Click it is a common misconception that you need to appear at the top of the list to see the best results. This is only really necessary when the keywords you are targeting receive very little traffic and you need for these people to see your advert.
However, in most cases being at the top of the list is rarely the most cost effective way of advertising with Pay Per Click. Providing the keyword you are targeting receives a reasonable amount of traffic it is often better to appear slightly lower on the list.
A client of ours was recently paying over £1 per click across their campaign. In the last few months we have taken over their campaign and reduced the click cost to only 75p. As a result of these changes the 25p a click saving now means for their £100 a day budget they receive over 130 visitors a day (up from 100).
If you are responsible for your companies Pay Per Click budget you should experiment with lower click costs and see how your adverts perform when in 4th or 5th position.The chances are that even with lower placed adverts the keywords you are targeting will receive enough traffic/clicks to use up your daily budget.
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