Google Ads bidding update: what advertisers should review
Starting August 17, 2026, Google Ads will update its bidding system for campaigns with a “Limited by budget” status that use a target-based bidding strategy, such as Target CPA or Target ROAS.
The main change is that Google will now optimize more consistently toward the bid target you have set, including when the campaign budget is adjusted.
This update could have a significant impact on campaigns that are currently outperforming their targets.
For example, if a campaign has a Target CPA of €10 but is currently achieving an actual CPA of €5, Google may gradually move performance closer to a €10 CPA once the update takes effect.
Advertisers will have several options:
- keep the current target if it still reflects their profitability goals;
- adjust the Target CPA or Target ROAS based on recent performance;
- set a new custom target;
- switch to a Maximize Conversions or Maximize Conversion Value bidding strategy;
- increase the budget to generate more conversions or conversion value while maintaining the defined target.
Google is also introducing a new Bid Target Adjustment Tool, which allows advertisers to update targets for eligible campaigns based on historical performance.
The tool is useful, but its recommendations should not be applied without proper analysis. Recent performance can be affected by seasonality, changes to conversion tracking, shifts in the traffic mix, conversion delays, or an unusually strong period.
Before August 17, advertisers should therefore audit all budget-limited campaigns and compare their configured targets with the actual CPA or ROAS recorded over several conversion cycles.
Posted Aug 3, 2026, 10:39 AM UTC