During the summer of 2009 Google made a number of changes to its AdWords interface. An extremely interesting addition was the inclusion of a bid simulator that provides increased transparency into the AdWords auction process. In short, for a range of bids that you specify, the simulator will provide you with estimates of the number of impressions and clicks your ads should receive as a result.
The following video explaining this new feature can be accessed on the Google Business channel on YouTube:
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