The Google AdWords Blog announced a new feature was added to the Opportunities Tab in the AdWords console. The new feature is named “Bid Ideas” and it gives you suggestions on if you should increase or decrease your bids on certain keywords.
Here is a picture:
Google said the bid suggestions are based on the Bid Simulator tool they announced last year.
Here is more from the blog post:
Bid ideas are shown with their estimated cost, impression, and click impact. When you click on a bid idea, you’ll see a graph showing clicks versus cost for a range of bid amounts. The graph will include your keyword’s current bid (marked in gray) and the proposed bid (marked in yellow). If you’re raising a bid, consider whether the extra clicks and impressions are worth the potential added cost. If you’re decreasing a bid, consider whether the saved cost is worth the potential loss of clicks and impressions.
The estimates you see are variations on your past performance over the last 7 days and are not attempts to predict or estimate future performance. Also, traffic patterns are always subject to fluctuation, so keep in mind that your future performance may shift over time. If you have reason to believe that next week’s traffic will be significantly different from the last week, due to seasonal reasons for example, then it’s a good idea to incorporate that information when selecting your bids.