What happens when a campaign consistently meets its average daily budget?
- Ads in that campaign will stop showing for the rest of the billing cycle
- Average cost-per-click (CPC) bids will be lowered
- Your budget is automatically adjusted
- Ads in that campaign will show less often than they could
You set an average daily budget for each AdWords campaign, and then the system will aim to show your ads as much as possible until your budget is met. When your budget is reached, your ads will typically stop showing for that day. How quickly your ads are shown during a given day is determined by your ad delivery option.
Adding my inputs in all the great answers above, a campaign that consistently meeting its budget will result in loosing impressions which your campaign can get. I suggest that you check the search impression share and lost metric in your account for that campaign to view this information. You can add those columns from customize tab.
Also as per my understanding if you are using automatic bidding then Google will try to give you as many clicks as possible within your budget that means your cpc will be less which may lead to lower avg. position for the campaign.
If you have a limited budget, you want to make the most of every cent you spend on your advertising campaign. When your budget is limited, your ad might not show as frequently as you’d like — or might not show at all.
Read more here: //support.google.com/adwords/answer/2375418?hl=en
This article shares tips to help you spend your budget more effectively.
Lower your bids in campaigns that are “limited by budget”
While counterintuitive, slightly lowering your bids in campaigns that are marked “limited by budget” could potentially help you earn more clicks. Lowering bids for budget-constrained campaigns could reduce the average amount you pay when someone clicks your ads, with the potential for your budget to go further and get more clicks. Lowering bids too much, however, could result in fewer clicks if your bids are no longer competitive. If you choose to decrease your bids, check your campaign a few days later to ensure that you haven’t lowered your bids too much. Learn how to edit your bid
Let AdWords automatically bid for you
An alternative to lowering your bids yourself is to allow AdWords to automatically set bids for you. There are multiple types of automated bid strategies, each designed to help you reach a specific goal for your business, such as increased clicks or conversions. Learn about automated bidding
Change your delivery method from “Accelerated” to “Standard”
Accelerated delivery is likely to use up your campaign’s daily budget early in the day. This is because accelerated delivery shows your ads until your budget is reached. “Standard” delivery is more optimized, which means that the delivery of your ads is spread more evenly throughout the day.
If you’re using manual bidding, by default your campaign will be set to “Standard.” It’s not possible to use “Accelerated” delivery with automated bidding. Learn how to change your delivery method
Use your campaign’s recommended budget
AdWords shows recommended budgets for campaigns that repeatedly meet their daily budget but have the potential to earn more clicks and impressions. You can use these recommendations to estimate how a new budget may improve the visibility of your campaign’s ads.
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All Questions and Answers of AdWords Fundamentals Assessment :
AdWords Fundamentals was updated. Now it's available on Google Academy for Ads. Google changed this exam 17th January, 2018.