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Improve Your Google Ads Performance With Bid Simulator

Improve Your Google Ads Performance With Bid Simulator

On a recent update by Google Ads Support team, they release a new way to get more insights from a wider variety of campaigns. They have added a bid simulator that targets ROAS bid strategy and a new PPC budget simulator.

  1. What is ROAS
  2. Find the right target ROAS to achieve your goals
  3. Find your ideal budget to maximize performance
  4. How target and budget simulators work
  5. About bid estimates
  6. What to do if your ad still doesn’t appear

What is ROAS?

ROAS = Revenue / Cost

  • The total revenue (in a dollar amount) generated by your ad strategy
  • The total cost (in a dollar amount) of managing your ad strategy

Your ROAS is expressed as a dollar amount and represents what your company earns back (on average) for every dollar spent on your ad campaign. If yours equaled $5, for instance, that would mean your business earns $5 for every $1 spent.

Bid simulators help you understand your potential performance at different bid levels. To date, these simulations have only been available for campaigns using manual bidding or Target CPA. To make it easier for you to get more insights from a wider variety of campaigns, we’re adding bid simulator support for the Target ROAS bid strategy and a new budget simulator.

Find the right target ROAS to achieve your goals

The Target ROAS bid simulator shows the relationship between a ROAS target and your key metrics. For example, let’s say you’re interested in seeing how a higher target would impact your performance. Using data from the auctions you participated in over the last 7 days, this tool will show you what would have happened assuming everything else (e.g., your ads, landing pages, competitor ads, competitor bids etc.) stayed the same.

Find the right target ROAS to achieve your goals
Find the right target ROAS to achieve your goals

Find your ideal budget to maximize performance

On occasion, you may need to update your budgets for campaigns that use Maximize clicks or Maximize conversions. Like the bid simulator, this new budget simulator will show how these changes could have impacted your performance. This makes it easy for you to find your ideal budget allocation across campaigns.

Find your ideal budget to maximize performance
Find your ideal budget to maximize performance

Use simulators to estimate Smart Bidding performance

There are two types of Google Ads simulators that you can use, Manual CPC bid simulators and Smart Bidding simulators.

Google Ads simulators help you see how different settings might change your ads’ weekly performance. When using Smart Bidding, simulation tools help you to better understand what will happen to your ads’ performance when you change your CPA target, ROAS target or your daily budget.

How target and budget simulators work

Target and budget simulators collect and analyse data from ad auctions that you participated in, and estimate how your ads might have performed in terms of key metrics like cost, conversions, conversion value, impressions and clicks if you had set different CPA or ROAS targets, or budgets.

Simulators can provide insight into how different targets and budgets might have affected performance over the past seven days, but they don’t attempt to predict future performance. For instance, if you believe that your ad performance might change significantly in the coming weeks, you’ll want to be careful using simulator data to choose your settings.

You can estimate your simulator results at scale by using the Google Ads API (AdWords API).

Target CPA simulators are available for Search, Display and App campaigns. Target ROAS is available for Search campaigns. Maximise conversions, Maximise conversion value and Maximise clicks simulators are available on the Search network.

Get your ads shown on the first page

On average, ads that appear on the first page or above the search results get substantially more clicks than ads that appear on other search results pages. To help you get your ads to show in these valuable positions, Google Ads provides cost-per-click (CPC) bid estimates that you can use when setting your bids.

This article also explains first page, top of page and first position bid estimates and how to find them.

About bid estimates

There are three types of bid estimates available in the Keywords tab to help you get your ads on the first page of search results when a search query exactly matches your keyword.

First page bid estimate: The bid that you probably need to set for your ad to be shown anywhere on the first page of search results.

Top of page bid estimate: The bid that you probably need to set for your ad to be shown among the ads at the top of the first page of search results.

First position bid estimate: The bid that you likely need to set for your ad to be shown in the first position relative to other ads.

Instructions

  1. Sign in to your Google Ads account.
  2. Click Keywords in the page menu.
  3. Add the following Attributes columns:
    1. Est. first page bid
    2. Est. top page bid
    3. Est. first pos. bid 
  4. Click Apply. Now you’ll now see these columns in the statistics table.

First page, top of page and first position bid estimates are a guide, meant to give you greater insight with which to plan your bidding strategy – but meeting or exceeding these estimates isn’t a guarantee of ad placement. Final placement will still depend on competition from other advertisers, your Ad Rank, your budget and account settings and user behavior.

What to do if your ad still doesn’t appear

In some cases, your ad might not appear in your preferred placement in the search results, even if you meet the relevant bid estimate for that placement. Bear in mind that these estimates are guidelines based on your keyword’s Quality Score and recent advertiser competition, and they apply to search queries exactly matching your keyword. For example, if your first page bid estimate is very high, it may mean that the quality of your ads and website is poor. Meeting or exceeding these bid estimates isn’t a guarantee of where your ad will appear.

Below are a few common reasons why your ad might not show on the first page, even when you meet this bid estimate:

  • Advertiser competition: There could be new competition on your keywords.
  • Keyword match: The searches that customers are performing might not match up exactly with your keywords.
  • Budget changes: If a recently changed budget has been fully depleted, your ad might not run.
Google Ads bid simulators help you see how different bids might change your ads’ weekly performance.
  • The regular Bid Simulators show you how changes to your max. CPC bid might change the cost or the number of clicks, impressions, conversions and conversion value that your ads would have received for your keyword or ad group. You can find them on the Ad groups and Keywords page.
  • The Campaign Bid Simulator shows you how changes to your campaign’s bids might affect that campaign’s performance. Find it on the Campaigns page.
  • The Shopping Campaigns Bid Simulator shows you how certain changes to your bid might have impacted your product group’s performance. You can find it on the Product groups page.
  • The Video Campaigns Bid Simulator shows you how changes to your max. CPV might impact your typical weekly video traffic. Find it on the Campaigns page.
  • The Hotel Campaigns Bid Simulator shows how changes to your max. CPC or max. CPC% bid might have impacted your hotel group’s recent performance. You can find it on the Hotel groups page.
  • The Device Bid Adjustment Simulator shows you how changes to your device bid adjustment might affect your ad performance on different devices.
  • The Call Bid Adjustment Simulator shows you how changes to your call interaction bid might affect the performance of your call extensions.

“Approved by the team who built Google Ads, the Google Best Practices newsletter provides actionable tips and tactics to help you get the most out of your campaigns.”

Author Details


Gary Vela

Gary Vela

Digital marketer obsessed with ROI driven campaign and crafting solutions for clients worldwide.

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