Your ad copy is one of the most important vehicles to reach to your prospects. You need to make your ad copy enticing for the user to click on the link and look at your offer. Making the ad text very relevant to the search the user did and adding appropriate call to action increase the probability of someone clicking on the link. For example, by including one of the keywords in the ad text (preferably on the title), you make the ad very relevant to the search the user is doing.
Adwords Help Center has a good article on optmizing your ad text here. In a nutshell, you need to keep in mind the following while designing your ad text - create simple & enticing ad, use pricing & promotion, use a strong call to action, include one of your keywords in the ad, and choose the best destination URL.
In addition to the guidance provided by Google above, there are couple of other things to keep in mind:
Ad Text, Landing Page, Keyword
Having a highly relevant combination of ad text, keyword and landing page helps you improve the quality score of your ad significantly. While it may be very efficient to use generic landing pages for your ads, by doing so you would be sacrificing the quality score of your ad. Ideally the landing page should be dedicated to the product/service relevant to the ad. There are also situations where you might not be able to use a relevant keyword in the ad text. For example, copyright violation issue could prevent you from using a competitor's name in the ad text. If your intention was to have your ad displayed when someone types in your competitor's name in Google search window, you could still mitigate the quality score issue by using the competitor's name in the landing page.
Testing Your Ad
It's a good practice to do test effectiveness of your ad. By using A/B testing technique, you should be able to determine which version of an ad leads you to better CTR. You can also use ACE (Adwords Campaign Experiments) to measure effectiveness of your ad text.
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