Google just changed target-based bidding: Here’s what advertisers need to know

Google Ads is rolling out a significant change to how target-based bidding works, and it could quietly shift the performance of campaigns that are currently beating their targets. If you’re running Target CPA or Target ROAS campaigns, here’s something worth reading carefully.

What’s actually changing

Starting August 17, 2026, Google is updating its bidding systems so that campaigns marked as ‘Limited by budget’ perform more consistently toward the target you’ve set — including when you adjust budgets to try to scale.

This might sound like a small technical tweak, but it’s a meaningful behavioural shift. Until now, budget-limited campaigns using a target-based strategy could end up over-performing their stated target, because the algorithm found a more efficient cost than the number you actually typed in. After August 17, Google will optimise toward the figure in the target field, not the efficiency floor it discovered on its own.

In plain English: if your stated Target CPA is £20 but your campaigns have been delivering at £12, you could see that cost drift back up toward £20 unless you act first.

Which campaigns are affected

The change applies to campaigns using Target CPA or Target ROAS across Search, Shopping, Performance Max, Demand Gen, and Travel campaigns. It also affects Demand Gen campaigns managed in Display and Video 360, and target-based campaigns managed through Search Ads 360.

Some campaign types are excluded. App campaigns, Video reach campaigns, and Video view campaigns will keep the previous behaviour, and Hotel and Display campaigns already operate under the new rules.

The key condition is that the campaign must be flagged as ‘Limited by budget’. If a campaign is not budget-limited, this change does not apply.

The naming change you may have noticed

Alongside this, Google has also been cleaning up how bidding strategies are labelled. Starting in June 2026, ‘Maximize conversions with a Target CPA’ is being renamed back to simply ‘Target CPA’, and ‘Maximize conversion value with a Target ROAS’ is becoming ‘Target ROAS’ again.

This is purely a naming and organisational change — the underlying bidding behaviour is identical. Google’s own documentation is explicit that the two labels function in exactly the same way. But it’s worth knowing, because you may see campaigns relabelled in your account during the transition.

Why this matters for your campaigns

The practical risk here is that campaigns that have been quietly over-performing their targets could see performance drift toward the stated target — and if that target was set high (or has not been reviewed recently), you could end up paying more per conversion without realising why.

This is especially relevant for advertisers who use targets as a ceiling rather than a real goal. If your Target CPA has been sitting at a number you set months ago and never revisited, now’s the time to check it.

What you should do now

Google has made a Bid Target Adjustment Tool available, starting July 6, 2026, to help you review and update campaign targets before the change takes effect. You can find it via the notification banner in your account, or by navigating to Campaigns, opening Settings, selecting Bidding, and clicking ‘Review campaigns’. The tool will show you which campaigns are affected and where targets may need adjusting.

Before August 17, it’s worth doing a quick audit:

• Identify which of your campaigns are marked ‘Limited by budget’ and use Target CPA or Target ROAS.
• Compare each campaign’s stated target against its actual performance over the last 30 days.
• If a campaign is beating its target, decide whether to lower the target to lock in the efficiency, or accept the drift toward the stated figure.
• Review your targets regularly going forward, because Google has confirmed it will not adjust budgets or bid targets for you.

The bottom line

This is one of those Google Ads updates that does not make headlines but can quietly change your results. The good news is that it’s predictable and manageable — as long as you review your targets before the rollout reaches your account.

Campaigns set up well, with realistic targets and regular oversight, should benefit from more consistent, predictable performance. The ones that will feel the sting are those running on stale targets that were never reviewed in the first place.