The reasons for using the bidding simulator lie in the basic consideration of bids at auctions. While in a conventional auction in an auction house only the bid amount is decisive, many factors play a role in Google ads. With Google AdWords, the advertiser makes his maximum bid for a click for a specific word or combination of words. But that does not mean that he has to pay this price. Similarly, the highest bidder does not automatically get first place among the ads.

Basically you can distinguish between 2 different bidding simulators. The first bid simulator deals with the manual costs per click. The second one is part of the automatic bid adjustments in the cost per click. They both determine the effects that certain factors have on the direct performance of an advertised search term.

The importance of bid simulators for a web marketing agency is immense, because they make the work in the field of search engine advertising SEA much easier. In the past, one had to determine the data obtained oneself and incorporate it into the campaigns. You had to sacrifice extra time and above all budget, which is always annoying. Today this work is done automatically, which also results in a faster performance increase of campaigns and ads.