Google Ads Bidding

Budget-limited campaigns will deliver closer to your stated bid targets

Starting 17 August 2026, Google is updating target-based bidding for campaigns marked Limited by budget. Target CPA and Target ROAS will optimize more consistently toward the targets you set, including when you change daily budgets. If a campaign has been outperforming its target, actual CPA or ROAS may shift toward the value you originally entered.

What is changing and who is affected

Today, budget-constrained campaigns on Target CPA or Target ROAS can overperform their stated target and show volatility when budgets move. After 17 August 2026, those campaigns should track their configured target more predictably, making budget increases a safer way to scale without unexpected efficiency swings.

The update applies to Search, Shopping, Performance Max, Demand Gen, and Travel campaigns using a target-based bid strategy. Display and Hotel campaigns already follow the new behaviour. App, Video reach, and Video view campaigns are unchanged.

Example: if your Target CPA is €10 but recent actual CPA is €5, performance will move closer to €10 after the rollout unless you update the target. To keep €5 efficiency, lower the target to €5 (or another goal-aligned value) before 17 August.

From 6 July 2026, the Bid Target Adjustment Tool in Google Ads lets you review historical performance and apply recommended target updates. Google will not automatically change your targets or budgets.
  • Effective 17 August 2026 for budget-limited Search, Shopping, PMax, Demand Gen, and Travel campaigns on Target CPA or Target ROAS
  • Bid Target Adjustment Tool available from 6 July 2026 to review performance and apply target updates
  • Campaigns that beat their target may see CPA/ROAS move toward the configured target after the change
  • After the update, budget increases should scale more predictably at your stated target
  • Options: keep target, align to recent performance, set a custom target, change strategy, or raise budget

Review budget-limited, target-based campaigns now: the target you set is the target the system will pursue more consistently.

You can keep your current target if it still reflects your goals, apply a target aligned with recent performance via the adjustment tool, set a custom target, switch to Maximize conversions or Maximize conversion value, or increase budget to capture more volume at your stated target once the new logic is live.

For Performance Max and Demand Gen, traffic mix across channels may also shift as optimization aligns more tightly with your target. Booncy can help you audit affected campaigns and plan target and budget updates ahead of the deadline.

Official reference: Changes to target based bid strategies (Google Ads Help).

Request more information

Have questions about this resource? Fill out the form and the Booncy team will get back to you shortly.

*required fields

Want to learn more?

Contact us to discover how we can improve your store's visibility and maximize profits across your sales channels.