I like this quote from the PPC Blog:
Budget caps are there to prevent you from overspending as a safety precaution and are not a primary method that should be used to control spend.
There is an important distinction between using budget caps to keep from overspending and to use them to control advertising spend. I agree with the pay per click Blog when he says that anyone who is not a beginning pay per click advertising should not control ad spend with budget caps. That’s what your CPC is for.
You must decide whether it’s more important to you to get your ad in front of more searchers or to see it higher in the ad positioning on the SERPs. To rise higher in position you’ll have to raise your bid, but if you have a budget cap then your ads will stop running sooner during the day and your ad will be seen by fewer searchers. On the other hand, if you lower your bid you will see your ad appear lower in the ad positions but more often. The result will be more eyes on your ads.
Simply put, if your campaigns are hitting there budgets daily you are not getting the most out of your paid search campaign.
Max your daily budget too soon and you could be shooting yourself in the advertising foot. You might get a better ROI by lowering your CPC and showing your ads to more people. Not only will you be in front of more eyes, but you’ll also be paying less for targeted clicks and getting more return on each sale you make as you increase your chances of getting more sales. The bottom line is, advertising is about ROI and nothing else.
