...their advertising results, thereby ensuring a better understanding of the costs and click-through volumes.

Even though, Bid Simulator cannot predict the future or estimate the future results accurately, it can help with analysis of the data from the past seven days. It allows advertisers to examine what could have happened if they had taken different keyword-level bids. With the help of the historical data of the previous week, the Bid Simulator re-calculates the number of impressions for which an ad could have shown if the advertiser would have chosen a different maximum CPC or a higher bid, how many clicks that the ad could have received for those impressions and how much those clicks could have cost!

It seems Bid Simulator would help advertisers make better and more informed decisions when it comes to determining which keywords to change spend on. To use Bid Simulator, advertisers need to navigate to the keywords tab in their AdWords account and then click the bid simulator icon in the Max. CPC column next to the current bid of any keyword. This will list bids above and below current maximum CPC and list the estimated number of clicks and cost. By clicking the relevant radio button advertisers can change their maximum CPC rate up or down and save results!

Here is a screenshot:

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