Google Ads is updating how target-based bid strategies work for campaigns that are limited by budget. The change will take effect on 17 August 2026 and is intended to make campaign performance more consistent when budgets are adjusted.

What is changing?

Target-based bidding strategies include options such as:

• Target CPA: Aiming to generate conversions at a set average cost per acquisition.
• Target ROAS: Aiming to generate a set level of revenue for every pound spent.

At present, some budget-limited campaigns can perform better than the target that has been set. However, their results may also fluctuate when the daily budget is increased or reduced.

From 17 August 2026, Google will adjust its bidding systems to follow the targets set by advertisers more closely. This should make performance more predictable, particularly when campaign budgets change.

Do I need to take action in my Google Ads account?

If you are happy with your current bidding targets, you do not need to make any changes.

However, some campaigns may currently be outperforming their CPA or ROAS targets. Once the new system is introduced, these campaigns may begin to perform more closely in line with the target entered in Google Ads.

Businesses that want to maintain their current level of performance should review affected campaigns before the change takes effect.

What should I be reviewing in Google Ads before the update?

Before 17 August 2026, it is worth reviewing:

• Campaigns using target CPA or target ROAS bidding.
• Campaigns are regularly marked as limited by budget.
• Campaigns performing significantly better than their current targets.
• Recent changes to budgets, conversion values or bidding targets.

Google is also introducing a Bid Target Adjustment Tool to help advertisers identify campaigns that may need their targets changing.

What could this mean for my Google Ads campaigns?

The update should reduce unexpected changes in performance when budgets are adjusted. However, it may also mean that campaigns currently exceeding their targets no longer achieve the same results without further optimisation.

For example, a campaign with a target CPA of £50 may currently generate leads at an average cost of £40. Following the change, Google may bid more closely towards the £50 target unless the target is adjusted.

Regular monitoring will therefore remain important. Advertisers should avoid making rushed changes and instead assess performance using reliable conversion data over a suitable period.

How matm can help

matm can review your Google Ads campaigns, bidding targets and budgets before the new system takes effect.

We can help with:

• Reviewing target CPA and target ROAS campaigns.
• Identifying campaigns that may be affected.
• Adjusting budgets and bidding targets.
• Checking conversion tracking and campaign data.
• Monitoring performance after the change.

For help managing your Google Ads campaigns, contact matm at [email protected] or call 01952 883 526.