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Adwords Bid Simulators and performance reporting

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# 1
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Hello,

 

I have a question regarding how my adwords account records recent performance and how this impacts/updates how much i pay per click.

 

Over the past week my campaigns wide bid simulator data has improved from:

 

(17th - 22nd Oct) Max cpc: £11.80  Clicks:14      Cost: £14.60  Impressions: 72

 

(22nd - 28th Oct) Max cpc: £18.30  Clicks:154    Cost: £2036   Impressions: 220   (13 Top Impressions)

(22nd - 28th Oct) Max cpc: £1.82    Clicks:22     Cost: £30.97  Impressions: 28     (1 Top Impression)

 

The data from the period of 22nd-28th Oct displays the max and min Max cpc it would take to get top page impressions.

 

My question is i would expect to see a drop in my est first page and top page bid values based on this bid simulator data and my recent performance, however my est page values being reported in my account have not changed since the keyword was first introduced without any performance data associated with.

 

Can anyone help?

 

(I am advertising for just the one keyword which is an exact match)

 

 

1 Expert replyverified_user

Re: Adwords Bid Simulators and performance reporting

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# 2
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To add to this;

My est first page value is being calculated at £8.00 and
My est top page value is being calculated at £19.00

Re: Adwords Bid Simulators and performance reporting

Top Contributor
# 3
Top Contributor
The key is in your QS. If that improves, you could see the first page and top of page estimates go down. It also depends on your competition for the keyword.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: Adwords Bid Simulators and performance reporting

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# 4
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Hi Pete,

Thanks for the reply however this doesnt really help. Can any of the other top contributers help?

My QS is 10/10.

In addition the bid simulators take into account & collect and analyze data from ad auctions on the Search Network from the last seven days for my keyword to issue me with the bid simulator results i see in my account.

The bid simulators wouldnt estimate the values it is showing me in my account without taking my competitions performance into consideration.

Can anyone help or advise me why my bid simulators performance is improving but isnt refelcted in my est first page bids and top page bids getting cheaper?

Re: Adwords Bid Simulators and performance reporting

Top Contributor
# 5
Top Contributor
Sorry that didn't help. You hadn't mentioned the QS. Google doesn't really tell us whole lot about how they come up with these estimates. All we know is they are estimates.

I'm sure you know ads are placed by ad rank, QS * Max CPC bid. Are you seeing a lot of competition (other ads) for these keywords? It also could be a moving target, depending on day scheduling, bid increments and other factors in your competitions' campaigns.

We know QS is calculated every time it is shown or used. We don't know how often first page and top of page estimates are updated or calculated.

Good Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: Adwords Bid Simulators and performance reporting

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# 6
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Hi Pete,

Thanks for the reply. I do actually have a question regarding Ad Rank if you can help?

As you know ad rank = QS x Max CPC

What would happen in the following assuming both advertisers are targeting the same keyword [Blue Widget];

Advertiser 1)
Max CPC: £4.75
QS: 10/10
Est First page bid: £2.25
Est Top page bid: £4.75

Advertiser 1 would have an ad rank calculation of 10 x £4.50 = 47.5 Points

Advertiser 2)
Max CPC: £6
QS: 10/10
Est First page bid: £5.25
Est Top page bid: £8.75

Advertiser 2 would have an ad rank calculation of 10 x £6.00 = 60 Points

As you can see Advertiser 2 would have a better ad rank calculation than advertiser 1. Isn’t this penalising advertiser 1 for having a lower est first page and top page bid?

There would be no reason for advertiser 1 to set a higher Max CPC of £4.75 as the Adwords system has rewarded him with a lower first and top page bid.

How does the ad rank calculation system take into effect advertisers who have a lower first page bid and top page bid when calculating an Ad Ranking Score?

Re: Adwords Bid Simulators and performance reporting

Top Contributor
# 7
Top Contributor
Those are estimates based on activity over the last week, or something like that. I have not found those first page and top of page estimates to be valuable as anything more than advice. Top of page requires a certain QS, I would think 10/10 is high enough for top of page.

I look at the bid simulator a lot to see what would happen if I raised bids to recommended levels. Most often, it's a big increase in the bid for an insignificant number of additional clicks.

The question is, are you showing on the first page? Are you showing at the top of the page? I find I do show, even when my bid is lower than the estimated first and top of page bids.

Google does not tell us much about how they calculate those bids. Ad Rank is not affected by these estimates, either. Ad Extensions can now affect your QS, but they are pretty vague about how that works, too.

Evaluate the performance for yourself and make your decisions accordingly. Their recommendations are not always good.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords