1% is low imho. CTR is a function of how many impressions you are getting. You want to laser target your ads so that they show only a reasonable amount of times and of those times you have ad copy compelling enough to make someone want to click it. This means research your competition for the terms you are writing ads for and make yours stand out. There are tons of articles on how to do this, but one of my favorites is looking at offline magazines and how they attract attention in their ads, (besides some hot chick holding their product). There's gold in magazines as far as getting inspiration for writing good ads.
Yeah, pick a magazine that has your product(s) in it and look at what they are writing about the products. Those guys have tested that ad copy a million times because it's very risky putting ads in magazines.
Another route, mimic the number one ad's ad copy, don't just look at adwords, type your keyword into ysm and msn and see what the number one and two ads look like. Then write one of your own with your own spin on it, but make sure it follows their format. It's got to be different, but the same in that their ads work, (I know that is kinda confusing).