Awful CTR, any advice?

It could be a number of things. Maybe you're targeting the wrong keywords, maybe it's the layout of the page, etc

You need to try different ad types and use channels to track their performance. Lots of people think that the 336 x 280 ad unit is the best and I've used them myself with pretty decent success, but you need to use a plugin (if its a wp blog) to display the ad where you want it. A plugin that I use that is pretty simple and straight forward is called quick adsense and it is easy to set up where you want the ad displayed.

One rule of thumb is to have the least amount of ads as possible for higher paid clicks. You are allowed 3 ads per page, but I only use 1 ad. I keep it in the middle of the content and it works pretty good. Also, the less amount of eye candy on your site the better. Make the ad stand out by not having such a pretty site. It sounds goofy, but people need an incentive to click the ad over searching away from your site. Also, some things changed recently and it seems adsense isn't relevant to page content anymore. This sucks because it hurts click rates in my opinion. So if your click rates dropped recently, and you haven't changed anything and your traffic is still somewhat the same as it has been, it could be because of this change to how adsense displays ads. I don't like it, but we have to deal with it I guess!

If you're using Wordpress there are some great themes that help with CTR. I've recently been using CTR Theme and I've had great results with it thus far. A really nice feature of it is the fact that you can set custom channels on it and monitor different ad layouts in order to find which ones convert the best for your specific site, then set those layouts to show on the pages they are best for. You'll shell out a little cash for the program but with 700 visits a month you should start recouping some of your loss fairly quickly.

I personally wouldn't change anything after 700 page views. It's not enough to tell. Let's say in the next 300 page views you get 20 clicks? Then you have a .2 right? But if you do change now you will never know for sure that you weren't doing it right to begin with.

Worst thing that happens is you are right, you should change, and you lose a couple bucks. But for that couple bucks you bought the peace of mind of knowing for sure that whatever you are doing now doesn't work.

Wait for a few thousand page views, then change something is my advice.

I think it's really hard to give solid advice without actually looking at your site and the positioning of the pictures and the offer itself.

Maybe you can give more details or a screenshot or something for the forumers to help you better?

I think you have to focus on geographical location like target USA audience, it would be beneficial for you.