Bid simulator is nice, but what I really wanted to highlight was the existence of profit maxima and the fact that it can be determined experimentally.
In retrospect, Bid simulator is probably the best thing to use for a starting estimate of the keyword profit optimum (if you don't have data and just use your global conversion rate across all keywords.)
Obviously google has the MOST information and is in the best position to optimize on advertisers behalf, but among SEMs I trust and respect, I've found that there tends to be a distrust for how Google applies the information and a belief that despite the inferior information, a more hands on approach tends to outperform Google's built in tools.
In retrospect, Bid simulator is probably the best thing to use for a starting estimate of the keyword profit optimum (if you don't have data and just use your global conversion rate across all keywords.)
Obviously google has the MOST information and is in the best position to optimize on advertisers behalf, but among SEMs I trust and respect, I've found that there tends to be a distrust for how Google applies the information and a belief that despite the inferior information, a more hands on approach tends to outperform Google's built in tools.
For example, Google doesn't use the keyword when determining what ad to show in its ad rotation optimization. http://searchengineland.com/optimize-for-conversions-using-t...