Bidding now tracks your target more closely
Google rolled out a change to target-based bidding that makes budget-limited campaigns optimise more consistently toward the target you set, even when you adjust the budget. For many accounts this means a quiet shift in performance that is easy to miss if you are not watching.
On 17 August 2026 Google updated its bidding systems for campaigns that carry a "Limited by budget" status and use a target-based bid strategy. The headline change: these campaigns now optimise more consistently toward the target you entered, including when you adjust the budget. It is a small shift in how the system behaves, but it can quietly change your cost per conversion if your target no longer matches reality.
What changed on 17 August
Before this update, a budget-limited campaign using a target-based strategy could overperform its stated target. In practice that meant a campaign could deliver better than the CPA or ROAS you set, then behave unpredictably whenever you changed the budget. Google's update changes that: it now optimises more consistently toward your target regardless of budget, so you can scale with more predictable performance.
The change applies to Target CPA, Target ROAS and, for Demand Gen campaigns, Target CPC. Google's own example: if your Target CPA is RM10 but your recent actual CPA is RM5, your campaign now delivers closer to an RM10 CPA. To keep your recent performance, update the target to RM5, or set whichever target reflects your business goals.
Why it matters for your targets
Google will not automatically adjust your bidding targets or your budgets. The responsibility sits with you. If a campaign is overperforming its target and you want to keep that efficiency, you should update the target to match recent performance. If you want a different result entirely, set a new target of your choosing. Either way, waiting until performance shifts and then reacting costs you weeks of wasted spend.
- Compare recent actual CPA or ROAS against the target. Pull the last 60 to 90 days and see which campaigns outperform their targets.
- Align targets with reality. Set the target to what the campaign is actually delivering, or what you genuinely want.
- Wait one or two conversion cycles. After any change, let performance stabilise before judging it.
- Budget buffer helps. Google suggests providing budget headroom while setting a target that reflects your desired efficiency.
This update does not raise your spend. Daily and monthly budget limits are still respected. It is about making performance predictable at the target you choose, not about spending more.
Which campaigns are affected
The change applies to campaigns managed in Google Ads or Search Ads 360 that use Target CPA or Target ROAS, and Target CPC for Demand Gen. That includes Search, Shopping, Performance Max, Demand Gen and Travel campaigns. Demand Gen campaigns managed in Display & Video 360 are also covered.
Some campaigns are not affected. App campaigns, video reach and video view campaigns keep their previous bidding behaviour. Hotel and Display campaigns already had the new behaviour. Manual CPC and Target Impression Share strategies are not part of this change, and Smart Bidding Exploration is generally unaffected.
Performance Max and Demand Gen
For multi-channel campaign types such as Performance Max and Demand Gen, the overall effect is the same, but you may see a shift in how spend is allocated across channels after the update. That is expected. If you notice a different channel mix, review your targets rather than panicking about the change itself. The same guidance applies: align your target with what you want to achieve.
What to do now
- Open the Bid Target Adjustment Tool. You can find it from the account notification that reads "Review your campaign targets", or in Campaigns, then Settings, then Bidding, then Review campaigns.
- List budget-limited target-based campaigns. These are the ones the update affects.
- Set targets to match recent performance. Especially for campaigns that outperform their current targets.
- Be careful with forecasts for a couple of weeks. Google notes that Performance Planner forecasts may be less accurate between 17 and 31 August while the new behaviour settles.
The other August changes
The 17 August bidding change was part of a wider set Google announced earlier in the summer. That batch included expanded Smart Bidding Exploration for Performance Max to capture more diverse, conversion-friendly traffic, and a promotion mode beta for e-commerce advertisers. Alongside these, Google has been relabelling bid strategies: "Maximize conversions with a Target CPA" is becoming "Target CPA" and "Maximize conversion value with a Target ROAS" is becoming "Target ROAS". The names change but the bidding behaviour stays the same, so no action is needed there.
Sources
This summary is based on Google's own documentation: the Google Ads Help article "Changes to target-based bid strategies" (effective 17 August 2026), the Google Ads Help FAQ on target-based bid strategies, and Google's June announcement on bidding and budgeting updates that scale growth. Forecast caution between 17 and 31 August is noted directly in Google's FAQ.