When Geo-Bid Adjustment is loaded for an account until the time any bid adjustments are made, the New Bid Adjustments Column shows the previous bid adjustment(if any). We have made it this way to ensure that even if someone ends up apply new bid suggestions without actually making any change, the bids remain the same as before.
The tool always suggests the target location based on the location targeting setting defined for a particular campaign in AdWords.
The new Bid adjustment is calculated basis the current bid adjustment, current value of goal for a campaign/ad group(device) and the goal value that you'd want to optimize for.
Scenario 1 - Current Bid Adjustment - 0%
Say your current bid is $1, and the current bid adjustment is 0% and Cost/Conv is $5. So, to hit a goal Cost/Conv of $6, the Max CPC of $1 which need x% of an increase in the bid to achieve the goal of $6
here, x = ($6 * $1)/$5 = 1.2 i.e. +20% bid adjusment.
Scenario 2 - Current Bid Adjustment - 50% (i.e. you already have 50% bid adjustment applied)
Again, say your current bid is $1, and the current bid adjustment is 50% and Cost/Conv is $5. Then, with Max CPC of $1 -> and a bid adjustment of 50% -> which is $1.5 -> you've achieve the cost/conv as $5. Now you need y% increase in the bid to achieve the goal of $6.
here, y = ($6*$1.5)/$5 = 1.8 i.e. +80% bid adjustment will be recommended
In case you have set the allowed range of bid adjustment lower than any of the calculated values, then the system will show the upper limit of the range.
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