I have been running an adwords campaign for about a week now and the vast majority of impressions and clicks (and the cost to me) are coming from the content displayed ads. I'm wondering if the search listings are more targeted and therefore have a better conversion rate. Anybody have experience with this? Running just the search ads will keep the cost down but will also reduce traffic, but they might be better quality clicks than just happening to catch someones attention in a content ad. At least in the search listing they are searching for what I'm selling.

Any thoughts?

Well, content ads for google is still the highest for me. The search does not seem to have higher conversion rates for me. But my sites content is games based so it can vary.