Google Ads Bidding Changes: Prepare for 17 August

Google Ads Bidding Changes: What to Do Before 17 August

Google Ads is changing how target-based bidding works for campaigns that are limited by budget.

From 17 August 2026, budget-constrained campaigns using Target CPA or Target ROAS will begin optimising more consistently towards the targets entered by the advertiser.

While Google presents this as a move towards more predictable performance, it could have significant consequences for campaigns that are currently performing substantially better than their stated targets.

Advertisers should therefore review affected campaigns before the change takes effect; not simply accept Google’s suggested adjustments without considering the commercial implications.

What is Changing?

At present, campaigns marked as “Limited by budget” can sometimes outperform their Target CPA or Target ROAS.

For example, a campaign may have:

A Target CPA of £50
An actual CPA of £30
A budget that prevents it from capturing all available traffic

Despite the £50 target, the campaign may continue delivering conversions at approximately £30 because the restricted budget effectively forces Google to prioritise the strongest opportunities.

From 17 August, Google says these campaigns will optimise more consistently towards the target entered in the account.

In this example, that means the campaign’s actual CPA could begin moving closer to £50 unless the target is adjusted.

Google is introducing the change to create more consistent bidding behaviour regardless of whether a campaign is budget-constrained. The intention is that advertisers will be able to increase budgets with a clearer expectation of the CPA or ROAS that the campaign will achieve. (Google Help⁠)

Google has published further details in its official guidance on the changes to target-based bid strategies⁠.

Does this mean Campaigns can no Longer Outperform their Targets?

Not exactly.

A Target CPA or Target ROAS is still an average optimisation goal, not an absolute performance ceiling. Daily and individual auction results will continue to fluctuate, and campaigns may still perform better than their targets.

However, Google is explicitly warning that affected campaigns which have historically overachieved their targets may begin trending closer to them.

That distinction matters.

It would be too simplistic to say that campaigns will “never outperform their targets again”. The more realistic concern is that advertisers may lose some of the additional efficiency they have benefited from while their campaigns were constrained by budget.

Which campaigns are affected?

The change applies specifically to campaigns that:

Are currently (or have recently been) limited by budget.
Use an affected target-based bidding strategy.
Are running across eligible campaign types.

Affected strategies include:

Target CPA
Target ROAS
Target CPC for Demand Gen campaigns

Eligible campaign types include Search, Shopping, Performance Max, Demand Gen and Travel. Google has confirmed that campaigns using Target CPA or Target ROAS which are not limited by budget will not experience this change in bidding behaviour. (Google Help⁠)

This means advertisers should not make account-wide target changes without first identifying which campaigns are genuinely affected.

Why Could this Create a Problem?

The biggest risk is a gap between the target entered in Google Ads and the level of performance the business actually expects.

Targets are not always updated regularly. An advertiser may have entered a relatively loose Target CPA several months ago to help a campaign scale, while the campaign has since settled at a much stronger actual CPA.

Similarly, a brand campaign may have a modest Target ROAS despite consistently generating extremely high returns.

Until now, this difference may not have caused an obvious problem. After 17 August, Google will have greater freedom to pursue additional traffic while moving performance closer to the stated target.

That could result in:

A higher actual CPA
A lower actual ROAS
Increased traffic or conversion volume
Changes in traffic distribution within Performance Max or Demand Gen
A temporary period of volatility while bidding recalibrates

This does not automatically make the update bad. A business may be perfectly willing to accept a higher CPA in exchange for substantially more profitable volume.

The problem arises when the target in Google Ads does not reflect the real economics of the business.

Brand Campaigns may need Particular Attention

Brand campaigns are often among the most efficient campaigns in an account.

A campaign targeting a company’s own name may deliver a very high ROAS, even where its stated Target ROAS is considerably lower. If that campaign is also limited by budget, leaving the existing target unchanged could allow performance to move closer to that lower target.

However, advertisers should resist making blanket changes based solely on the campaign being labelled “Brand”.

A high brand ROAS can sometimes be inflated by customers who were already intending to purchase. Before tightening the target, advertisers should consider:

Whether the campaign is genuinely limited by budget
How much incremental demand the campaign is capturing
Competitor activity on brand searches
Impression share
Conversion lag
Whether revenue values are accurate
Whether tighter targets could unnecessarily reduce coverage

Matching the target to the last 30 days of performance may preserve recent efficiency, but it is not automatically the right commercial decision.

How Digity Is Staying Ahead of the Curve for You

Ahead of the 17 August update, the Digity team is reviewing affected Google Ads campaigns to identify where actual performance is significantly stronger than the Target CPA or Target ROAS currently set.

Our focus includes:

Identifying campaigns that are limited by budget and use target-based bidding.
Comparing current targets against recent CPA and ROAS performance.
Prioritising high-spend campaigns where the financial impact could be greatest.
Assessing whether targets still reflect each client’s margins, lead values and wider business objectives.
Making considered adjustments where necessary rather than applying Google’s recommendations automatically.
Monitoring performance closely as the updated bidding behaviour takes effect.

We will also avoid making unnecessary account-wide changes. Tightening a target too aggressively can restrict traffic and conversion volume, while leaving an outdated target in place could allow performance to move towards a less efficient level.

Every adjustment will therefore be based on the individual campaign’s performance and the commercial outcome it needs to deliver.

The Key Takeaway

Google’s update does not mean that campaigns will suddenly stop outperforming their targets. However, the Target CPA or Target ROAS entered in the account will become more influential for campaigns that are limited by budget.

By reviewing these campaigns ahead of the change, Digity can identify potential risks early, make any necessary adjustments and minimise disruption once the new bidding behaviour takes effect.

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