Starting August 17, 2026, Google Ads will update target-based bidding so campaigns optimize more consistently toward the Target CPA or Target ROAS you set, even when budgets change.
What may change
Campaigns marked “Limited by budget” that currently outperform their targets may become less efficient unless their targets are adjusted.
For example, a campaign with a $10 Target CPA that currently achieves a $5 actual CPA may begin delivering closer to $10 CPA after the update.
Performance Max and Demand Gen campaigns may also see changes in how traffic is distributed across channels.
What advertisers should do
Review affected campaigns before August 17, 2026, particularly those that:
– Are or were limited by budget
– Use target-based bidding
– Are performing better than their stated target
Google will not automatically change targets or budgets.
The Bid Target Adjustment Tool, available from July 6, 2026, will show recent performance and allow advertisers to update targets quickly.
Available options
Keep the current target: Performance may move closer to that target after the update.
Match recent performance: Lower the target to the campaign’s recent actual CPA or ROAS.
Set a custom target: Choose a target that better reflects profitability and business goals.
Change bidding strategy: Maximize Conversions or Maximize Conversion Value may preserve volume, but CPA or ROAS may fluctuate.
Increase the budget: After the update, budget increases should scale volume more predictably while maintaining the stated target.
Budget guidance
Google recommends giving campaigns enough budget to scale, reviewing budget recommendations, and waiting one to two conversion cycles after a budget increase before evaluating performance.
App campaigns, Video Reach campaigns, and Video View campaigns will keep the previous behavior.
Hotel and Display campaigns already use the updated behavior.
