I've noticed if you lower your Max CPC bid, the Traffic Estimator will show that you get a lower click-through rate, but at a better price. Do they restrict your add to less competitive time frames to give you that better price? Does that then impact your conversion rate, or is a click a click?
If you lower your CPC bid then the Traffic Estimator shows you the rates for lower positions. The ad on the top of the page always gets more click throughs than the ad that is shown 5th on the page. And thats what Traffic Estimator takes into consideration.
But you should know that the Traffic Estimator is just that - an estimator. Your real cost per click and ad positioning with Google depends on a lot of other factors. Including things like how good your landing page is. And how better your ad is than others.
So determine the CPC at the cliff on their graph. And then optimize your Google ads. (Also, a lot of ad networks are cheaper than Google Adwords. So use Google Traffic Estimator to find an optimal price point. But start advertising your product at other places.)
Actually, Google has this measurement scale called "Quality Score." Your landing page is one of the things they evaluate to measure the quality score. And your quality score affects your CPC.
