<< by Tad Miller on August 19th, 2009
I recently wrote about, Google Adwords new Bid Simulator Tool being a “Carrot and Stick” motivator to get advertisers to raise bids. The Bid Simulator Tool essentially tells you how many clicks and impressions you missed due to having too low of a Max Cost Per Click. It’s good in theory but when you look at what kind of keywords you will be raising your bids on with Broad and Phrase match its not really all its cracked up to be.
But alas, thousands of Adwords advertisers will never see my post and will think the bid simulator is a great deal, and essentially bid with their ego to get the top advertising spot for their keyword. Which will in turn have a ripple effect on other bids for the same keyword and lead to even more ego bidding to position. In reality I think this tool isn’t Google being “transparent” into the ad auction. It’s Google being a smart business and taking actions to increase ad revenues.