I was always under the impression that .05% was the minimum CTR requirement for a keyword. I am seeing terms with 1.2% get the "add is not being delivered every time" and "at risk" warning. Why is this?
This is correct - and the best place to judget performance on Google is in the 'Status' column of your stats. The status column refers to the keywords performance on Google alone, while the CTR column gives you Google plus all partner sites.
BTW, a keyword with a CTR of 1.2% which has a status of 'at risk' would be a keyword that is doing pretty well on partner sites, but not-so-well on Google alone.
<<Where is this located? Do you mean the "Current Status" column? If so, mine only shows "Active" for the campaigns.>>
Go to ad-group where it shows the individual KW, the "status" is located at the second column. This column shows the status for each KW as Strong, Moderate, At risk and Disable. Note that the status and CTR are related but very weak. Some strong KW with CTR of 0.5% whereas the "At risk" or "Disable" KW with CTR over 1%.