Google has been testing for while now a new AdWords tool which gives you a greater insight into the impact of changing the bid price on your advertising results.
The bid simulator has just been launched and is now available to even more Google AdWords advertisers.
Dan Friedman from the Inside AdWords crew explains how useful this tool can be:
Using data from the past seven days, the bid simulator re-calculates the number of impressions for which your ad could have shown had you chosen a different maximum CPC, how many clicks your ad could have gotten for those impressions and how much those clicks could have cost. The feature provides increased transparency into the AdWords auction and gives you the insight to make more informed bidding decisions to meet your advertising objectives.
It basically shows you how many impressions and how your ad position would look, if you increased or decreased your bid price.
The following image shows an example of the bid simulator in action with the keyword as “keyword”.
Google have released an educational video explaining the tool in more detail, which you can check out here.
Any tool that helps advertisers get more “bang for their buck” is a great thing, so I really think this tool will be very well received. Although it has only been live for 1 day, the tool is certainly generating a lot of buzz in the online forums.
Have you tried the bid simulator already? If so we would love to know what you think about it.