Note from the Editor:
This is an archive version of the article sent to our newsfeed subscribers.
In this Newsletter: Google launched a new feature of Adwords called Bid Simulator.
Google launched a new feature of Adwords called “Bid Simulator”.
The Google Bid Simulator allows you to explore what could have happened if you had set different keyword-level bids. This product was announce a month or so ago by Google. Lets have a quick look at what this feature does.
The simulator uses data from the past seven days, re-calculates the number of impressions for which your ad could have shown had you chosen a different maximum CPC, how many clicks your ad could have gotten for those impressions and how much those clicks could have cost. This feature gives you the insight to make more improved bidding decisions.
To decide if you have to increase your maximum CPC bid for keywords, you have to compare your expected value per click to your incremental cost per click. Value per click is how much a click for a keyword is beneficial to you where incremental cost per click is how much extra you are paying for those extra clicks by increasing the bid. If your value per click is higher that incremental cost per click you can increase your bid.
Let's look at an example from the bid simulator:
Options Max CPC Clicks Cost
Option1 1.59 137 75.50
Option2 0.80 94 26.20
Change .79 43 49.3
Incremental CPC $1.14
In the above example, a $0.79 change in maximum CPC will results in additional 43 clicks. The cost for each of those "incremental clicks" is $1.19 (change in cost/change in clicks = incremental CPC).
It means if you value per click is more that $1.19 you can increase your bid to capture those extra clicks
This type of analysis is key when establishing budgets, and measuring incremental volume.
Did You notice?
If you use Google's Webmaster Tools you may have seen Google adding and removing features. Did you notice that Page Rank has been quietly removed? For those that have called and emailed us here at Dynamic Software ™, yes we have noticed. We will discuss the actual reason for this in a future newsletter as compared to the reason Google states publicly.
Dynamic NetMarketer is published periodically by Dynamic Software ™ Corporation, USA
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