daily budget and max CPC question

will daily budget of 10 * CPC cause my ad showing lower?

[idolw]

I have a following question:
Does setting daily budget on a level that allows just some 10-20 clicks a day affect ad performance?

For example: I want to try several expensive keywords ($1 per click), but I do not want to spend much for such test. So I set the daily budget at the level of, say $10-20 and wait to see what happens.

Now, will that move make my ad perform in a worse way than if I set a budget at the level of $100-200?

thanks

[AdWordsAdvisor]

Now, will that move make my ad perform in a worse way than if I set a budget at the level of $100-200?

Idolw, I wonder what you mean by "perform in a worse way"?

Do you mean would having a low daily budget:

* lower your ad's position?

* lower your conversions?

* lower your ROI?

* Raise your CPC?

I wouldn't say that there is a direct cause and effect relationship ship between low budget and 'poor performance' on any of these measures.

On the other hand, setting your daily budget much lower that would be required for it to run 24/7 would for certain cause your ad to show less during the 24 hour day than it would otherwise, which limits your exposure.

And what happens to your position, your conversion, your ROI, your CPC, and so forth really depends on your competitions during the portion of the 24 hour day that your ads are appearing.

AWA

Note to all: I'll be out of the office, tomorrow, 1/10/06, for a family event. Back Wednesday.

[idolw]

thanks AdwordsAdvisor!

that is what I meant exactly:
if I set high CPC and low daily budget, will the system lower position of my ad in order to ensure more clicks at lower price or will it just display my ads for the initial time of the day and stop displaying after the budget ends?

thanks again