If a campaign is consistently undelivering despite a sufficient budget, what is the FIRST diagnostic step?

If a Microsoft Ads campaign is consistently 'undelivering' – meaning it's not spending its allocated budget – despite having a sufficient budget assigned, the FIRST diagnostic step is to meticulously examine the campaign's targeting settings and keyword bids. Underspending usually stems from limited reach, so the initial focus should be on factors that control who sees the ads and how competitive the bids are. First, meticulously review location targeting, audience targeting (including any custom audiences), and demographic settings to ensure they aren't overly restrictive. An extremely narrow target audience inherently limits impressions. Second, analyze keyword bids. If the bids are significantly lower than the suggested bid ranges or the competition, your ads are less likely to win ad auctions and show frequently for relevant searches. For example, if the suggested bid for a keyword is $2-$3 and your maximum bid is only $1, the campaign is unlikely to deliver fully. Only after verifying and adjusting these core elements should you explore more advanced issues like ad quality scores or policy restrictions.