Google have recently announced the launch of the new Bid Simulator Tool in adwords. Is this a great optimisation tool for advertisers or another Google money making tool?
Firstly let me take you through the simulator.
The Bid Simulator gathers your adwords account data over a seven day period, recalculating your figures to provide you with;
1. The number of impressions your ad could have achieved with a different CPC bid
2. The number of clicks your ad could have achieved as a result of these missed impressions
3. The estimated CPC’s for these clicks
The Simulator can be found at keyword level by clicking the 
symbol next to each eligible keyword.
(The Bid Simulator is currently only available on selected keywords with good levels of search traffic).
Once clicking the symbol the following keyword graph and projections will appear;
It is important to keep in mind that this tool is a simulation tool making future projections not guarantees of additional traffic/account performance.
Are Google knowingly increasing sponsored search competition for top positions by dangling the carrot in front of advertisers’ noses?
I believe this tool will prove to be useful when used in the correct fashion. I would recommend extensive trials/testing to ensure you aren’t un-necessarily increasing keyword CPC’s without gaining an increased (beneficial) return.
We will be monitoring the simulator tool with eager eyes over the upcoming months conducting trials across eligible PPC campaigns to gain an insight into how useful this tool will prove to be.
Paul Broomfield
PPC Campaign Delivery Manager
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