AdWords Ranking

Google will rank an AdWords ad based on the maximum CPC, the
click through rate (CTR) and the relevancy of the ad text.
Google prefers relevant and well-targeted AdWords ads. Google
determines ad placement using the value formula: CPC x CTR.
The ad is placed higher as the valuation rises. It's possible
for an advertiser to have a high rank position with a low CPC
if the CTR makes the value to Google higher than other ads
with a higher CPC.

Google requires a minimum CTR in order to protect the AdWords
program value for its users. The CTR of all AdWords ads are
monitored by Google on a continuous basis. An under-performing
AdWords ad may be disabled by Google if the CTR does not
improve.