Bid Adjustment is a new feature in Google Adwords using which you can target the user's device, location and time. This helps advertisers better control their ad spend and increase their CPA and total revenue generation.Bid adjustments make it easy to raise or lower your bids based on user context. For example, you can change your bids for customers viewing your ad on an iPhone in your city/metro area vs. a customer viewing it on their desktop in another city.
If your Google Adwords account is linked to your Google Analytics, you can review your bid adjustments by going to Traffic Sources > Advertising and clicking the Bid Adjustments. With the new Bid Adjustments report, you can take advantage of the full range of visitor metrics available in Google Analytics to optimize your bid adjustments. This provides a window into your users ’ behavior, allowing you to optimize bid adjustments based on behavior & goal conversion data like bounce rate and time-on-site.
This feature will be handy for advertisers who want to generate leads from their sites as well as for eCommerce merchants.If you have Ecommerce tracking enabled in Google Analytics, you can now use this data to fine-tune your bid adjustments in AdWords based on the actual conversions