Google Ads Bidding Update: Review Your Target CPA and ROAS
9/10/2026

Google Ads Bidding Update: Review Your Target CPA and ROAS

Your Google Ads targets matter more than ever. The August 17, 2026 bidding update changes how budget-limited campaigns using Target CPA and Target ROAS optimise performance—making it important to check whether your settings reflect your business goals.

What Has Changed?

Budget-limited campaigns now optimise more closely towards their configured targets. Previously, these campaigns could deliver conversions at a lower cost or generate a higher return than the target suggested.

For example, if your Target CPA is €20 but your actual cost per conversion has been €10, performance could move closer to €20. At the same spend, that would mean fewer conversions.

Likewise, campaigns exceeding their Target ROAS could see returns move closer to the configured goal. Neither outcome is guaranteed, but both highlight the importance of reviewing outdated settings.

Which Campaigns Are Affected?

The update applies to eligible, budget-limited Search, Shopping, Performance Max, Demand Gen and Travel campaigns using target-based bidding.

It does not automatically change your budgets or targets. The potential difference is the performance delivered within your existing spend.

How to Prepare Your Campaigns

  • Compare targets with results: Look for significant gaps between configured targets and recent CPA or ROAS.
  • Check business profitability: Ensure your targets reflect acceptable acquisition costs and returns.
  • Make considered adjustments: Avoid changing multiple settings at once.
  • Monitor overall results: Review spend, conversion volume and conversion value together.

Set Targets That Support Your Growth

Automated bidding needs clear objectives. Your campaign targets should reflect results your business can accept—not depend on consistently outperforming them.

ATD Advertising helps businesses build and optimise Google Ads campaigns around their goals, audience and budget. Get in touch to discuss your strategy.

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