The Bid Simulator is a tool you can use to view estimated costs, impressions, position and clicks for a specific keyword based on a proposed bid.
every advertiser can take advantage of these suggestions, however, mine is "be careful"... you will see that the increase in 'estimated traffic' is not in analogue to the cost you will be paying should you increase the bid. Why should you be paying double for keywords that are already doing well without the need to increase it for more traffic? Analyze the % in increase and total clicks you are estimated to receive and you can determine the convenience and results of this action.
If you are willing to test and invest some money on in: Monitoring is the KEY WORD here!
Read about this new feature at the Google Blog:
http://adwords.blogspot.com/2009/08/bid-like-pro-with-bid-simulator.html
