Answers
Is "limited by budget" a reason to raise budget?
Only if the campaign is above your break-even. Otherwise it is telling you to fix it, not feed it.
The short answer
Only if the campaign is above your break-even. Otherwise it is telling you to fix it, not feed it.
On a profitable campaign, that status is the clearest scaling signal Google gives you. Raise gradually rather than doubling.
On an unprofitable one, raising budget buys more of a loss. The cap was masking a targeting or margin problem.
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