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Originally Posted by flood6
It is possible to appear in both the organic results and the CPC results at the same time. I can speak for Yahoo/Overture for sure because I just checked a campaign I'm familiar with and the site was #1 in the PPC and organic results. I'm almost positive it is the same for Google/AdWords.
The best way to avoid paying for traffic you would get for free anyway is to keep checking your client's SERPs and once you are getting decent placement in the organic listings for that keyphrase, stop bidding for that keyphrase. Then spend the money on a a key phrase that your client isn't positioned well for.
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Yes, the same is true for Google/Adwords. Good advice about watching organic placement and moving the money to a lower positioned phrase. This can be very helpful for newly added pages/products that have yet to receive a nice placement. You can continue to optimise to achieve your desired organic results all the while gaining traffic through the PPC.
Dave