What's wrong with my google adwords account? How to optimize?

[Serela]

Here is a question. I have [specifically targeted] ads and only 2 or 3
advertising on those key words what so ever but my costs keep going up. I'm on the first ad shown position but every few days later, the bid goes up 0.20 to .25 to 0.50 to 1.20.... Why does this happen?

For certain keywords. a day later, some of my ads are not displaying, using 'ad diagnostic tool', I got this message:

"Although your ad is showing, its rank is not high enough to place it
on the first page of search results."
but few hrs ago, I'm on the first ad shown position. What's the deal?!

and some keywords get the message:
'The user is located outside your campaign's geo-targeting area.'
but I got impressions before, why will get this message?

Anyone could help? Thanks in advance.

[IMarketing101]

Hard to say without seeing it the ads and site...

But check for these things:
1. Is your page relevant?
2. Competition in your market - is anyone trying to outbid you?
3. CTR -is that good?
4. Try exact and phrase matching for these keywords and check the results.