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.
When bid adjustments are applied to AdWords, the system will add the city as a target location and set the bid adjustment. Locations that are not added as targets show highlighted in the table.
The new Bid Adjustment is calculated based on 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.
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 of Cost/Conv $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, so a +20% bid adjustment.
Current Bid Adjustment - 50% (i.e. you already have 50% bid adjustment applied)
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'll 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, so a +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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