Just like the title says, what are your opinions on what is more effective, increasing cost per click or daily cost? I personally think that increasing daily cost is better becuase I did just that and very soon the average position got a little boost. Not much, but a little. However, I do not seem to understand how come the ad that shows position number 27 for a keyword gets 15 clicks in one day? I thought that no one ever looks past the first two pages on the serps? But that is a whole different topic...
ideally your ad budget should be more than you spend so your ads are constantly delivered ... you should use good ad targeting to limit your spend. buy whatever is profitable and buy as much of the most profitable traffic as you can. if you reach your set budget then it might be worth lowering CPC such that you get more clicks for the same price
I agree. if you are running out of funds, increasing the daily limit is better than increaseing the cost/click.