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Google Lets You Simulate AdWords Performance

See What Could Have Been

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Google launched an interesting new feature to the AdWords interface that lets you see what could have been if you had bid differently. The feature, called the Bid Simulator, shows you the potential impact of your bid on your advertising results.

"While it can’t predict the future, the bid simulator allows you to explore what could have happened if you had set different keyword-level bids," says Dan Friedman of Google’s Inside AdWords crew.

Bid Simulator

The Bid Simulator uses data from the past week to re-calculate the number of impressions for which your ad could’ve shown if you chose a different maximum CPC, how many clicks your ad could’ve gotten for those impression, and how much those clicks could’ve 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," says Friedman.

Advertisers can take advantage of the information they obtain from the Bid Simulator and apply changes to their campaigns in the future, should they choose to do so. As Friedman notes, however, past performance does not guarantee future results.

To use the Bid Simulator, go to the "keywords" tab in your AdWords Account, click the bid simulator icon in the Max. CPC column next to the bid of any keyword.

Google Lets You Simulate AdWords Performance
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  • http://lancepat.wordpress.com Lance

    Cool, I’m going to try this out. Thanks!

    Obviously Adwords effort to get people bidding more ;)

    • http://www.danieldeyette.com Daniel J Deyette

      Truth is, I don’t think the bid simulator is even neccesary.
      Really, when your testing initially, you should be going full out with
      the budget to feel out which words convert and which don’t etc.

      If you know you make $20 on every widget, spending MORE than
      $20 to acquire a customer is pointless.

      So all this tool tells you is there’s more people out there if you could
      just make more money on your widget…

      Dan

  • http://dangerbrown.com/ Danger

    I’ll be interested to see how this feature works in practice. My personal experience with their estimates of performance is that they are pretty far from the truth. But they are often reliably off in their predictions. In other words, if you find it is always off by 50% it can still be a very useful tool.
    Make lots of money folks!
    Danger Brown

  • http://www.squidoo.com/theclickbankprofitsystemreview Clickbank Profit System

    I think its good training and research for Adwords based on past performance. Great Report.

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