Here’s what Google Adwords says about it. Enable conservative automatic targeting to optimize your targeting to reach people your targeting wouldn’t otherwise reach, at around the same cost per person, automatically. Google’s Reason: You have targeting optimization disabled. Use 'Bid only' to target all users and adjust bids for the ones in your audience. You have Search Network or Shopping interests and remarketing targeting set to 'Target and Bid' which restricts traffic to just the users in your audience.
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