The English account is set to show in several European countries for all languages, but only for widgets (broadmatch).
The Dutch campaign is set to show in the Netherlands only, for widgets-in-Dutch and for all kinds of special widgets (gizmo's). The special widgets, which DO NOT have the word widget in the search phrase (think horse breeds for example) each have their own adgroup and ad copy with the gizmo word in the title.
The diagnostics tool displays the gizmo ad for a gizmo search in Dutch.
Now guess which ad shows up when I search for Gizmo in google.nl, with a Dutch OS, from a Dutch IP address?
Well, yes, "Buy widgets!" (in English) of course!
Why would we even bother to finetune our campains if Google is screwing up like this? Google, when are you going to build in some logic in choosing the right ad for a search?
The best match is NOT made by CTR x CPC alone, not for Google, not for the advertiser and not for the searcher!
Even then it would be a bad solution:
1) all gizmo's with their own adgroup have to be excluded, not just this one
2) the English widgets campaign runs in several countries, not only in those with their own ads. I don't mind if the English ad would show there for gizmo's - there is nothing better there.
The solution lies in Google better matching ads, not in advertisers setting up endless variations of campaigns with different geo targeting and exclusions or abandoning broadmatch.
(Spare me that one please.)
Setting up several new English campaigns, each with different geo targeting and exclusions, only takes needless extra space, computer power and time.