You can not save money using Adword, Let me explain why so.
I am handling adwords for many of my clients and have provided consultant for many clients and responsible for managing team of Adword experts.
I am taking care of Adword for my own business, Bcoz I couldn't find an expert who can give better ROI.
Having so much experience in Adword, I will suggest one thing to all small & medium business that, You DO NOT depend on Adword for business find a better way to generate more traffic to your business.
Nowadays Adword is only suitable for a larger organization who can spend million of $ in Adword, Adword gives one of the worst ROI.
Assume few years back, the top bidding amount was around $10, now the same keyword top bidding amount is close to $200 ~ $300, How do you expect a small business to make profit this way ?
All the clicks from adword will not result in business, Mostly 1 out of 10 will result in business. So you acquire a customer for $2000 or $3000, Is it worth it or affordable for a small business.
Small & medium business should find a innovative way to acquire customers and connecting with local people will give better results than Adword.
Generally people like you (who starts playing with Adword or the beginners) tend to keep adjusting all the settings, like
bid for top position
bid for top page
do some other experiments....
there are "really" more than 200 setting parameters are available in Adword. Its like driving a car with 200 control buttons.
By the time, you learn all these settings by doing some adjustment here & there, your total budget for the year might have been exhausted without much result.
The ONLY way to get more result in Adword is by bidding higher price, Which you have to analyse whether is it worth it or not.
DO NOT believe your Internet marketing agency about what they tell on Adword, The more you spend on adword, they will earn more.
Some of the Adword marketing agency charge their clients based on the amount spent, regardless of the return. So, Most of them make their living by selling Adword to you.