Ginny Marvin, the Google Ads Liaison, shared a detailed video Q&A regarding the upcoming bidding update scheduled for August 17th. These changes are stirring quite a buzz within the PPC industry, and Ginny aimed to clarify key points in this video format.
In the five-minute explainer, she addressed three main questions:
(1) What exactly is changing, and why?
(2) What should advertisers anticipate once the update is live?
(3) What steps should they consider taking?
It’s uncertain if these responses fully alleviate industry concerns, as many PPC professionals remain anxious about the impact on data and performance metrics after August 17th.
The video covers these points, with additional commentary shared on X:
(1) What’s changing and why?
Campaigns that are limited by budget and surpass their targets will have their performance realigned to meet those targets. This adjustment helps better synchronize bids with objectives; the system will now prioritize achieving your CPA or ROAS goals, whether the campaign has an unconstrained or limited budget.
This update also impacts how campaigns respond when budgets are adjusted, addressing earlier fluctuations in performance that occurred during such changes.
(2) What can you expect after the rollout?
Expect more stable and predictable performance when modifying budgets. If you adjust a budget-capped campaign’s target to match its current average output, you can anticipate similar levels of conversions or conversion value. After a short recalibration period, the system will continue to focus on maximizing these metrics based on your established targets.
If no modifications are made, the system will aim to find conversions or value consistent with the existing campaign targets, which may involve bidding in different auctions to meet higher ROAS or lower CPA goals.
In campaigns without budget constraints, your target aligns with your spend and efficiency controls—raising your ROAS target, for example, might reduce your spend as the system seeks higher efficiency.
For budget-limited campaigns, the target now doubles as your efficiency lever—that is, adjusting the target impacts spend and performance balance.
What actionable steps should you take?
- Audit your budget-limited campaigns and identify any discrepancies between set targets and actual CPA or ROAS results.
- Decide if adjustments to targets are necessary to better support your business objectives.
- Use the new notifications and tools available in your account to review campaigns and implement updates as needed.
When evaluating current performance, keep in mind the full conversion cycle to accurately interpret your averages.