One of the most important things you can do to lower your CPC (Click-Through Rate) is to raise your "Quality Score" (btw, "QS" is now used by all the major search engines - YSM (Yahoo Search Marketing) and Microsoft Adcenter - not just Google's Adwords).
One of the most important factors in determining Quality Score is your landing page.
Testing has shown that landing pages must contain certain elements in order to get a high QS.
Specifically, if you don't have a "Privacy Policy", "Contacts" page, and "Legal / Disclaimers" page, you will not achieve the highest Quality Score that you can.
Analogy Marketing wrote a post last summer detailing Google's QS Formula. While there have been some changes, it is for the most part still accurate.
Do yourself a favor and study the Quality Score formula, you'll do wonders for your CPC!
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