Google’s Bid Simulator Live - Hindsight Is 20/20

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Google added a new feature to the AdWords interface, and it will ultimately prove to be one of the more valuable tools in your PPC marketing campaigns.

No thanks to the black box known as quality score, advertisers routinely wonder about the additional clicks, positions improvements and additional costs they might receive if they were to increase their maximum CPC bids. With Google’s new Bid Simulator, now advertisers will know.

The tool adds a level of transparency to Google’s ad auction process by estimating the click, cost, impression, and average position data that ads would have received in the last seven days had different keyword Max CPC bids been set. The benefits are many, including a simplified bidding process (no more trial and error) and the ability to take incremental cost per click into account by communicating click cost information at different bid levels.

Before getting into how the system works, know that advertisers are not able to use Google's Bid Simulator if they are currently using conversion optimizer, budget optimizer, position preference or basic/advanced ad scheduling.

Because Google Adwords knows the quality score of your landing page, competitor bids and their quality score, the amount of traffic the search network received, and the probability of a click on an ad given its position, Google can estimate the position where an ad would have been shown for any bid, the number of clicks that it would have been received at those positions and the cost of those clicks.

To access the tool and see simulations, advertisers will need to select “Edit Keyword Setting” from their account after choosing which keywords to analyze. Then, select “bid simulator” under any keyword’s search bid (individually for each keyword)

For keywords that receive adequate traffic, the Bid Simulator shows an approximate hypothetical bid range, and estimates the number of clicks, cost, impressions and average position for those bids. If keywords (on the whole) receive lower traffic, the bid simulator will only show the estimates of impressions and average positions for various bid ranges. No simulated results will be available for keywords that do not meet any threshold, either because the keywords were recently added or the bid is too low to receive any impressions.

If you've tested the tool, share your feedback by commenting below.


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08-06-2009 12:31 PM

Pingback from  Google's Bid Simulator Live - Hindsight Is 20/20 - Website … | Best Resource for Adwords and PPC

RobM 08-08-2009 8:49 AM

Gonna try this one out today. Thanks! Rob

JamesK 08-28-2009 2:10 PM

Thanks Google for the new tool.  Will definitely have to check it out.

08-28-2009 2:30 PM

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