<< by Tad Miller on August 17th, 2009
Amanda Chaney recently reported on Google Adwords introduction of its new Bid Simulator Tool and how it works. The idea of it is simple. See how many clicks and impressions you missed because you didn’t bid high enough on a keyword… In theory that sounds great, it’s actual transparency into the ad auction never seen before.
But my feeling about it, is that it’s a tool to increase Costs Per Click for Google. It’s a great “Carrot and Stick” trick to get you to raise bids. Visibly seeing how much it will take to max out impressions for that keyword is a great way to incentivize advertisers to raise bids.