Google Ads Is Changing How Target-Based Bidding Works for Budget-Limited Campaigns

Google announced on 22 June 2026 that it is updating the behaviour of target-based bidding strategies for campaigns constrained by budget. The change takes effect on 17 August 2026. A new tool to help advertisers prepare becomes available on 6 July.

For advertisers running Target CPA or Target ROAS campaigns that are currently outperforming their stated goals, this update requires attention before the deadline.

What Is Actually Changing

Target-based bidding strategies in Google Ads, including Target CPA and Target ROAS, are designed to optimise toward a defined performance goal. In practice, many budget-limited campaigns deliver results that consistently exceed those goals. A campaign set to a Target CPA of £10 might routinely deliver conversions at £5.

Google’s update changes this. From 17 August, campaigns in a budget-limited state will adhere more closely to their configured targets. The algorithm will no longer operate as freely below the stated target when budget constraints are present.

The practical consequence is direct. A campaign achieving a £5 CPA against a £10 target may move toward the £10 figure after the update takes effect, unless the advertiser adjusts the target setting beforehand.

The Bid Target Adjustment Tool

Google is introducing a Bid Target Adjustment Tool, available from 6 July, ahead of the August enforcement date. The tool allows advertisers to identify which campaigns are likely to be affected by the update and adjust their bidding targets before the changes take hold.

This is the primary action window. Advertisers who want to preserve current performance levels need to lower their target settings to reflect the results their campaigns are actually delivering, rather than leaving the original targets in place and absorbing whatever performance shift follows in August.

Google has confirmed that account-level notifications will be sent before the rollout to flag affected campaigns.

Why Google Is Making This Change

Google’s stated rationale is consistency. When advertisers increase, decrease, or otherwise adjust campaign budgets, the update is designed to reduce volatility in how campaigns respond to those changes. Tighter alignment between target settings and actual bidding behaviour gives advertisers a more predictable relationship between budget decisions and performance outcomes.

The broader context is the ongoing shift toward greater transparency and consistency in Smart Bidding. Google has been gradually tightening the relationship between how bidding strategies are configured and how they actually behave, reducing the informal buffer that existed between stated targets and real-world delivery.

Who This Affects Most

The update is most consequential for advertisers whose campaigns are running in a budget-limited state and consistently delivering results significantly better than their target settings. These are the accounts where the gap between stated targets and actual performance is widest.

Advertisers running campaigns that are not budget-limited, or those whose actual performance is already close to their target settings, are less likely to see a material change after August.

For agencies managing multiple accounts, a systematic review of budget-limited campaigns against their current performance versus stated targets is the appropriate response before 6 July. The Bid Target Adjustment Tool provides a structured way to run that review account by account.

What Advertisers Should Do Now

The immediate priority is identifying budget-limited campaigns running target-based strategies and comparing stated targets against actual performance over the past 30 to 60 days.

For any campaign where actual CPA or ROAS is meaningfully better than the configured target, the target should be updated to reflect real performance before 17 August. This preserves the efficiency that campaign has been delivering rather than allowing the algorithm to drift toward a higher cost or lower return.

The 6 July availability of the Bid Target Adjustment Tool gives advertisers six weeks to complete this review before the update takes effect. Using that window is the straightforward way to protect campaign performance through the transition.