What Every Advertiser Must Do Before August 17, 2026
If your Google Ads campaigns have been delivering better results than your Target CPA or Target ROAS, this update could quietly change your performance overnight.
Many advertisers assume that if nothing changes in their account, nothing will happen. Unfortunately, that is not true.
Starting August 17, 2026, Google is changing how Google Ads Target Based Bid Strategies behave for campaigns that are Limited by budget. If you ignore this update, campaigns that have been outperforming your targets may suddenly become less efficient.
The good news?
With a few strategic adjustments, you can protect your campaign performance and even position your account for more predictable scaling.
Let’s break down exactly what is changing and what you should do next.
What Is Changing in Google Ads Target Based Bid Strategies?
Google is updating its Smart Bidding system for campaigns using target based bidding strategies, including:
- Target CPA
- Target ROAS
- Target CPC for Demand Gen campaigns
The update primarily affects campaigns that have been marked Limited by budget within the past 12 months.
Previously, Google’s bidding system often outperformed the target you entered.
For example:
- Target CPA = $20
- Actual CPA = $12
Although your target was $20, Google’s system frequently delivered conversions at a much lower cost because your campaign budget restricted participation to only the highest quality auctions.
After August 17, Google will aim to deliver results much closer to the target you actually entered.
That means your actual CPA may move closer to $20 unless you update your bidding targets.
Why Is Google Making This Change?
According to Google, the objective is simple:
Provide more predictable performance whenever advertisers increase or decrease campaign budgets.
Previously, advertisers often experienced unexpected fluctuations after changing budgets because campaigns were already significantly outperforming their targets.
Google wants bidding behavior to become more consistent with the target values advertisers choose.
Which Campaigns Are Affected?
This update impacts campaigns using Google Ads Target Based Bid Strategies across multiple campaign types, including:
- Search
- Shopping
- Performance Max
- Demand Gen
- Travel campaigns
However, the update mainly affects campaigns that are:
- Using Target CPA or Target ROAS
- Limited by budget
- Performing better than their stated targets
Campaigns that are not budget constrained are expected to continue behaving as they do today.
A Simple Example
Imagine your ecommerce campaign has:
- Target ROAS = 400%
- Actual ROAS = 850%
Today, Google’s Smart Bidding may consistently achieve 850 percent because your budget limits participation to only the best opportunities.
After August 17, Google will optimize closer to your stated 400 percent target.
The result?
- Lower efficiency
- Different auction participation
- Performance changes despite making no edits yourself
This surprises many advertisers because the campaign technically remains unchanged.
The Biggest Mistake Most Advertisers Will Make
Many advertisers believe this update is about changing bids.
It is not.
It is actually about aligning your targets with reality.
If your campaigns have consistently exceeded your Target CPA or Target ROAS for months, your targets are no longer accurate.
The algorithm has simply been compensating for them.
Once Google removes that compensation, your campaign will start behaving exactly as instructed.
An Expert Perspective: Stop Treating Targets as Goals
Here is something many advertisers misunderstand.
Your Target CPA or Target ROAS is not a performance goal.
It is an instruction you give Google’s bidding system.
That distinction changes everything.
Think of it this way:
Old mindset:
“My Target CPA is $25. Hopefully Google beats it.”
New mindset:
“I am instructing Google to optimize around $25.”
This update makes target values far more literal than before.
That means inaccurate targets become much more expensive.
Experienced Google Ads managers should begin thinking of Target CPA and Target ROAS as control levers, not reporting metrics.
This subtle mindset shift can dramatically improve long term account management.
Google's New Bid Target Adjustment Tool
To help advertisers prepare, Google introduced the Bid Target Adjustment Tool.
The tool allows advertisers to:
- Review historical campaign performance
- Compare current targets with actual performance
- Quickly update bidding targets
- Prepare campaigns before August 17
Google began rolling out the tool in early July 2026.
What Should You Do Before August 17?
1. Audit Every Limited by Budget Campaign
Start with campaigns using:
- Target CPA
- Target ROAS
Look for campaigns where actual performance consistently beats the target.
2. Compare Targets With Reality
Ask yourself:
- Is my Target CPA much higher than my actual CPA?
- Is my Target ROAS much lower than actual ROAS?
If the answer is yes, review whether your targets still reflect your business objectives.
3. Update Targets If Needed
If maintaining today’s efficiency is important, consider adjusting your targets to better reflect recent performance using Google’s recommendations. Google will not automatically change your targets for you.
4. Consider Increasing Budget
Sometimes the best optimization has nothing to do with bidding.
If your campaigns are consistently limited by budget, increasing the budget may unlock additional conversion volume while maintaining your desired targets.
This option is often overlooked but can be more effective than endlessly adjusting Target CPA or Target ROAS.
5. Monitor Performance After August 17
Even well prepared accounts should be monitored closely during the weeks following the update.
Pay attention to:
- CPA trends
- ROAS trends
- Conversion volume
- Impression share
- Learning status
Small adjustments made early can prevent larger performance declines later.
Frequently Asked Questions
No.
Google has confirmed that your bidding targets and budgets will not be automatically updated. Advertisers are responsible for reviewing and adjusting campaigns themselves.
No.
The biggest impact is expected for campaigns that were Limited by budget and use target based bidding strategies. Campaigns without budget constraints should continue operating normally.
Not necessarily.
For some advertisers, Maximize Conversions or Maximize Conversion Value may be appropriate, but removing target constraints also means CPA or ROAS can fluctuate more as budgets change. Evaluate this decision based on your profitability goals rather than making a blanket switch.
Final Thoughts
The 2026 update to Google Ads Target Based Bid Strategies is more than a technical adjustment.
It changes how Google interprets the targets you set.
Advertisers who regularly review campaign data and align bidding targets with actual business performance are likely to experience smoother transitions and more predictable scaling.
Those who ignore outdated Target CPA and Target ROAS settings may discover that their “successful” campaigns suddenly become much less efficient.
Now is the time to review your account before the August 17 rollout.
Read here the update from Google Ads!
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