Google Ads has recently announced upcoming changes to its bidding system, scheduled to take effect on August 17, 2026. These updates specifically focus on campaigns that are limited by budget and employ target-based bidding strategies such as Target CPA and Target ROAS. The goal is to deliver more consistent and predictable performance, especially when adjustments are made to the campaign budget.
Currently, campaigns limited by budget that use target bids can sometimes overperform or fluctuate unpredictably when budgets change, making it challenging to forecast results accurately. However, starting on the scheduled date, Google will aim to smooth out these inconsistencies, ensuring campaigns more reliably meet their target metrics, even with budget adjustments.
For example, if your target CPA is set at $10 but recent performance has been closer to $5, Google will maintain the $10 target after the update, unless you choose to change it. If you prefer to keep your recent performance levels, you can adjust your target downward to match your current results. This offers advertisers better control based on their specific business goals.
Google has also created guidance and updated documentation on how these changes will work for Target CPA and Target ROAS strategies, emphasizing the importance of reviewing campaigns with limited budgets before the deadline. They’ve introduced a new Bid Target Adjustment Tool available from July 6, 2026, which will help advertisers analyze historical data and make informed adjustments.
Campaigns that are performing above their targets can be further optimized by updating bid strategies through the new tool, or by increasing budgets to capitalize on growth opportunities. Ultimately, Google recommends reviewing your campaigns to ensure your settings align with your overall marketing goals, as there will be no automatic adjustments to bids or budgets on your behalf.
This information was shared via email with several Google Ads users, including industry professionals, along with visual aids illustrating the upcoming changes. While Google promotes these updates as a way to improve campaign stability, advertisers should prepare by reviewing current strategies and leveraging the new tools to stay ahead of the upcoming system enhancements.