Good news as Google Ads rolls out a bid simulator intended for the Target ROAS (Return On Ad Spend) bid strategy together with a new budget simulator. Google Ads bid simulator essentially helps advertisers see how different bids could actually change their period performance.
This is exciting news because it is the first time a bid simulator has been made available for smart bidding campaign, unlike before where bid simulators were only just available for bidding campaigns using the Target CPA or manual bidding.
Bid simulators are especially instrumental in helping advertisers gain deeper insights regarding their potential performance on different ad levels. The new Target ROAS bid simulator works to explicitly show the relationship that exists between the ley metrics of campaign and a Target ROAS. Basically, they show advertisers how any particular change on their max. CPC bid could potentially alter the number of clicks, or conversions, costs or the conversion values their ads could have otherwise received for their ad group or keyword. Advertisers can head over to the Keywords and Ad groups page to find the bid simulators.
The tool by Google Ads gives advertisers the chance to see and analyse how a higher target would end up impacting the performance of their campaigns. The tool functions by utilising data obtained from previous auctions as far as 7 days on the display network and search network while considering data from keyword traffic, competition in the auction and quality score to estimate or show what would have otherwise happened if the advertiser would have used a higher target, with the assumption that everything else was kept constant.
For instance, the tool can show you what would have probably happened assuming things like competitor ads, landing pages, your ads or competitor bids among others were kept constant. This means that maybe you believe that there is a chance that your ad performance might significantly change in the next few weeks then it would be wise to be careful when using the bid simulator data to help you choose your bids. The campaign simulator includes:
- Video campaign bid simulator.
- Shopping campaign bid simulator.
- Device bid adjustment simulator.
- Call bid adjustment simulator.
- Hotel campaigns bid simulator.
These simulators can be found on the campaigns page.
The New Budget Simulator
The new budget simulator by Google Ads works in a similar fashion with the bid simulator by showing advertisers how any form of change in the budget could have an impact on performance. Therefore, the tool goes a long way in allowing advertisers find their ideal budget to allocate across their campaigns. Therefore, advertisers can make use of the new budget simulator in their campaigns to maximise conversions or maximise clicks through Google Ads.