What is one way that budget limits affect Google Ads campaigns?

Budget limits play a significant role in determining the overall reach and effectiveness of Google Ads campaigns. When a budget is set for a campaign, it creates a cap on the amount of money that can be spent within a specified time frame, such as daily or monthly. This financial limit directly affects how often and to whom ads are shown.

With a restricted budget, the campaign may not have sufficient funds to bid aggressively on keywords or to cover the distribution of ads across various channels. As a result, ad impressions may become limited, leading to reduced visibility and exposure to the target audience. This can hinder the potential for attracting clicks and conversions, ultimately impacting the campaign's overall performance.

In contrast, options that suggest an automatic increase in ad performance, enhanced relevance, or improved bidding strategies do not accurately reflect the impact of budget restrictions. A limited budget does not inherently improve ad quality or relevance; instead, it may constrain the ability to engage with the audience effectively.