What Advertisers Need to Know Before 17th August.
Google Ads is making an important change to the way its target-based bidding strategies work, and advertisers using Target ROAS (tROAS) or Target CPA (tCPA) should review their campaigns before the update takes effect on 17th August 2026.
The change is particularly important for campaigns that are currently limited by budget and performing better than the targets set within Google Ads.
Until now, these campaigns could significantly outperform their ROAS or CPA targets.
Following the update, Google will optimise more consistently towards the target you have set. This means a campaign that has historically exceeded its target could begin moving closer towards it.
In this blog, we'll cover:
- What's changing with Target ROAS and Target CPA
- Which Google Ads campaigns will be affected
- Why campaigns currently outperforming their targets need attention
- What the change could mean for ROAS, CPA and conversion volume
- The actions advertisers should consider before 17th August
What's changing with Target ROAS?
Target ROAS is a Smart Bidding strategy that uses Google's AI to optimise bids based on the conversion value it expects an auction to generate. Advertisers set the return they would like Google Ads to achieve. For example, a Target ROAS of 500% tells Google to aim to generate £5 in conversion value for every £1 spent.
However, campaigns that are limited by budget can currently perform considerably better than the target set by the advertiser. From 17th August, Google is changing this behaviour.
For campaigns that are limited by budget, Google will optimise more consistently towards the Target ROAS or Target CPA entered into the platform, including when campaign budgets are adjusted.
The intention is to make performance more predictable and make it easier for advertisers to scale campaigns at their chosen efficiency target.
However, there's an important consequence for campaigns that are already significantly outperforming their targets.
Why could this effect campaign performance?
Imagine an e-commerce campaign has a Target ROAS of 500%, meaning the advertiser has told Google it is willing to generate £5 in revenue for every £1 spent. In reality, the campaign might currently be achieving a ROAS of 1,000% (or £10 for every £1 spent
Under the new system, Google has been explicitly instructed that 500% is an acceptable return.
If the campaign is limited by budget, Google can therefore optimise more consistently towards that 500% target rather than continuing to significantly exceed it. This could allow the campaign to pursue additional conversion value at a lower return.
The change isn't necessarily a bad thing.
If your objective is growth, accepting a lower ROAS in exchange for considerably more revenue or conversion volume could be exactly the right decision. The issue arises when the target sitting in Google Ads doesn't accurately represent the level of profitability or efficiency the business wants to achieve.
Which Ad campaigns are affected?
The update specifically affects campaigns that are limited by budget and use target-based bidding strategies. This includes:
- Target ROAS
- Target CPA
- Target CPC for Demand Gen
Google has confirmed the changes apply across Search, Shopping, Performance Max and Demand Gen campaigns. For e-commerce businesses, Target ROAS is likely to be the area requiring particular attention because of the direct relationship between advertising spend and conversion value.
What should advertisers do before 17th August?
The first step is to identify any campaigns that are both limited by budget and using a target-based bidding strategy. From there, compare the target you've entered into Google Ads with the campaign's actual recent performance.
If a campaign has a Target ROAS of 500% and is consistently achieving 900%, for example, ask an important question: Would we genuinely be happy for this campaign to operate at a 500% ROAS?
If the answer is yes, the existing target may still accurately reflect your business objectives.
If the answer is no, it may be time to reconsider the target.
Google has introduced a Bid Target Adjustment Tool to help advertisers review historical performance and adjust targets before the change. Google will not automatically change your targets or campaign budgets for you.
Should you change your Target ROAS?
There isn't one correct response to the update. The appropriate bidding strategy depends on what you're trying to achieve.
If maintaining your existing efficiency is the priority, you may want to adjust your Target ROAS so it more closely reflects the return the campaign is currently generating and the level your business needs to maintain.
If your current target accurately represents an acceptable return, you may decide to leave it unchanged. The campaign may then have more opportunity to scale while remaining closer to that target.
If you want Google to maximise revenue within a fixed budget without working towards a specific ROAS, Maximise Conversion Value may be worth considering.
For businesses focused more heavily on increasing the total number of leads or sales, Maximise Conversions may also be appropriate, depending on the campaign and how conversion value is being measured.
Changing bidding strategies shouldn't be an automatic reaction to the update. The important thing is understanding what each strategy is optimising towards and ensuring that objective matches your wider commercial goals.
A Google Ads target should reflect your actual business goals.
This is arguably the biggest takeaway from the update. A Target ROAS shouldn't simply be a number that was entered when a campaign was created and then left untouched.
If you tell Google that a particular ROAS is your target, that figure should represent a level of return you're genuinely comfortable achieving.
The same applies to Target CPA. If your campaign is currently acquiring customers for £20 but your Target CPA is £40, you need to understand that you've effectively told Google's bidding system that a £40 acquisition is acceptable.
From 17th August, that distinction becomes much more important for budget-limited campaigns.
Google's update could ultimately make automated bidding more predictable and give advertisers greater confidence when scaling budgets. But to benefit from it, your targets need to reflect the commercial reality of your business.
Need help reviewing your Google Ads campaigns?
If you're using Target ROAS or Target CPA and aren't sure how the 17th August update could affect your campaigns, now is the time to review your bidding strategy. Our team can assess your current campaign performance, identify budget-limited campaigns that could be affected and ensure your bidding targets are aligned with your wider revenue, profitability and growth objectives.
Get in touch with our team today to discuss your Google Ads strategy and make sure your campaigns are ready for the change.
