Comments on: The Google Adwords Bid Simulator – A Big Disappointment

By: Matt

Matt — Fri, 28 Aug 2009 17:45:03 +0000

I don’t think even professional advertisers will use this tool. Not now, at least. The odd beginner might use it if they are unaware, but your seasoned marketing professionals will recognize the flaws and avoid the tool until it appears to work in a much more realistic fashion.

By: Curtis

Curtis — Tue, 25 Aug 2009 02:54:26 +0000

I think only a limited number of advertisers will use the bid simulator. If they failed to make this transparent, then this major revenue stream going to put Google’s Q4 in peril. And Google knows this better than you and me

By: KG

KG — Wed, 19 Aug 2009 18:27:03 +0000

I should add that I have seen these outrageous bid recommendations on many different client accts. It is not just a few keywords here and there.

By: KG

KG — Wed, 19 Aug 2009 18:24:33 +0000

I could not agree more Matt with everything you said. I believe this a blatant attempt by Google to bring in more revenue by taking advantage of inexperienced PPC advertisers.

To Alfonso,

I think you are the one that is misunderstanding. Explain this one for me…..I have a client who bids on a high traffic/ low competition term (there is literally only one other advertiser) Their average position is 1.1. They have been consistently bidding around 2.07 for a term, Google recommended increasing this bid to 6.47 for 10 more impressions!! There is no justifying that increase….it does not make financial sense, nor would it even increase traffic because they almost always appear at the top pos.

By: Matt

Matt — Mon, 17 Aug 2009 20:46:13 +0000

From how I read your post, Alfonso, it seems like you have said the same thing between should and have to in terms of bidding.

In either case, though, I stand by the assertion that it’s inaccurate. I have previously acquired 47 clicks for much less per click on a much lower Max CPC bid price. Why would I change my Max CPC bid price now? The optimization work done on this account means I can bid lower and pay lower than what the Simulator is recommending.

The Simulator appears to be grabbing numbers out of the air, as no one would pay more for fewer clicks.

By: Alfonso

Alfonso — Mon, 17 Aug 2009 14:04:54 +0000

Matt, I think you are fundamentally misunderstanding the bid figures in the left-hand column of the bid simulator. These are not ‘recommended’ bids. They are merely ‘what if’ values.

So, if you are bidding $7.00 and the next value up in the chart reads $22.86 to receive 41 clicks, that does not mean that you should bid $22.86 to get 41 clicks, but rather, that you would have to bid $22.86 to get 41 clicks.

In other words, it’s up to you to determine what the best bid is for you. The Bid Simulator simply estimates traffic levels at various bids, without judging which of those bids is the best.