As an Expert Google Ads Specialist, I can tell you seeing these messages in AdWords Dashboard can be demoralizing, but there is always room for improvements.
I will start by explaining the technical terms.
Bid limits
Bid limits refer to the maximum amount you are willing to pay for the click, impression or conversion. You have to be aware that a lot of other websites/companies are fighting for the same, and they might have bid higher.
Daily Budget
Daily budget refers to the amount you are willing to spend in a day for any campaign, which is used up by Ads. Make sure you have enough budget.
How to fix Bid Setting Limited?
You can implement several strategies as below:
Review the bidding strategy
If you are using manual bidding strategy and allocating maximum CPC (cost per click), have a look at the auction. There is a good chance your competitors are bidding higher than you. In that case, you have to adjust the bid likewise. You might also want to check and test automatic bidding strategies.
Check you daily budget
Make sure you have plenty of budget allocated for the campaign. If your Ads aren’t showing, there might not be enough budget to show Ads.
Check Quality Score
Quality Score is one of the factors of cost for Ads. Higher quality score can reduce the cost per click. So, make sure your Ads have a decent quality score.
