That does not make sense to me, unless somebody can help me see why this happens...
This thread has some info on that:
[webmasterworld.com...]
However, let me ask you this: I did what AWA suggested as far as clicking on recommended budget and I received the message "Budget is OK".
Great, for my first time with my boss, I think I did it right. Could you agree that I did it correctly if I got the OK message?
To be specific, my boss' daily budget is $40 per day. Ok. That is not much, but not little either. Now, in all the keywords that were projected by keyword in a $1 max CPC, our daily cost is $38 and change. So, we are within budget. Is THAT why I received the Ok message?
On another note, I had a client who did not know what he was doing and he hired me to fix up his add campaign. Now, one of his keywords was a necessary clothing article that everybody needs. So, naturally, it is a very expensive keyword, namely $650 per day, which I realize is not out of the ordinary for a GOOD keyword. However, his daily budget was only $40 per day. So, you can see how that one keyword was drowning his campaign of 45 keywords.
So, if I received that Ok message, are we good to go?
However, this is not always the case. There are times that people have to use numbers that are 3-5 times the suggested budget to be shown all day.
If your budget really is $40/day (i.e. you have a hard cap), you're not being shown all the time, and you're in the top position, then you're not taking advantage of your budget.
By lowering your bids, you'll be shown more times per day, get more clicks for $40, and presumebly more sales through more visitors.
If you can afford to spend more than $40/day. Try raising your budget, and seeing if you're using more than $40/day - that would indicate that Google is underestimating your necessary budget.
On the other issue, if you have one keyword drowning out all the niche keywords, move it into its own campaign. This will give you more spend control about which keywords are shown.