Bid doesn’t affect your ad quality. In our Sponsored Search system, ads are ranked based on a combination of your bid and your ad’s quality.
To ensure that our system determines that your ad is relevant to the user’s search query and is thus eligible to be displayed, we recommend that you focus your efforts on improving your ad’s quality.
However, in some cases, it is possible that your ad is not being displayed due to a combination of a low bid and low ad quality. In this case--and provided there are other ads being displayed for the keyword in question--it is possible that a bid increase might result in the ad being displayed. But always focus on improving your ad quality first. In some cases, higher quality ads may allow for a lower bid and/or receive better placement on the results page.