The PPC community is buzzing about a forthcoming change to Google Ads, set to take effect on August 18th, relating to bidding adjustments for campaigns constrained by a limited budget. Many suspect this update might be part of a broader enhancement to smart bidding algorithms, even though Google has only officially announced it as affecting budget-limited campaigns.
This topic has been explored in detail, with updates integrating feedback from Google representatives. Initially discussed in early June, the shift has seen mixed messages—from Google reps minimizing its impact to the PPC community expressing concern. It’s unusual to see such differing perspectives.
A pointed question was raised by Maggie Humphrey in a discussion on LinkedIn, referencing a post by Joey Binder. She highlighted the apparent contradiction: Google claims the update primarily impacts campaigns limited by budget, but simultaneously states they are enhancing bidding systems for more predictable performance. This has led to questions about whether a broader smart bidding update is unfolding, possibly making bidding less cautious upfront to allow for increased spending under the guise of improved predictability.
Ginny Marvin, the Google Ads Liaison, clarified that the change mainly concerns campaigns with targeted bidding that are also constrained by budget. She explained that this is an effort to ensure consistent bidding behavior whether or not a campaign is limited by its budget. The goal is to provide more stable performance when scaling campaigns, especially since fluctuating results—particularly in budget-limited campaigns—have historically caused frustration among advertisers. The intended outcome is to make controls more transparent and allow targets to more accurately manage return on investment.
Humphrey sought further clarification, asking if a campaign exceeding its target but not limited by budget would continue operating as usual, and whether, upon becoming budget-limited, the same campaign’s ROAS might drop closer to its target unless the budget was increased. Marvin confirmed that campaigns not constrained by budget will not see changes in their bidding behavior and will continue to perform as they normally do. However, when a campaign becomes limited by its budget, performance should remain consistent, as expected bidding behavior will be aligned regardless of the budget constraint after the update.
Greg Finn provided additional insights during a recent discussion, emphasizing the importance of understanding these nuances. His overview covers the changes in detail and is accessible in a short six-minute video. For those interested in the technical specifics, watching his explanation can clarify how this update might influence campaign behavior and measurement strategies moving forward.
The conversation continues in industry forums, where these updates are being closely analyzed and debated.