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Have you ever wondered how you could keep you  costs down whilst  increasing traffic to your  site? The new Adwords Bid Simulator tool may be able to answer some of those questions.

It’s not a crystal ball and the information you glean from it is only a rough guide. However, the information it does provide does at least have some statistical basis behind it amd can help to tweak your pay-per-click campaigns.

The tool works by analyzing the last seven days traffic and then calculating revised impressions, clicks and cost in relation to changes in the maximum Cost-Per-Click. In other words, if you were to raise or lower your bid prices, what effect would it have on costs and traffic.

If you would like to test it out, just view all your campaigns in the AdWords interface.  From there,  select the keywords tab and sort all your keywords by click volume.  A blue icon should appear alongside the current CPC for all high-volume keywords; click on the icon and you can play around with the data.

As I said, it’s not a crustal ball but it can provide some interesting data. You can find out more from the the Google Adsense blog here.

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