Scott Redgate explains Google's upcoming Smart Bidding change in mid-August 2026 that will make budget-limited campaigns with target CPA/ROAS perform closer to their targets instead of outperforming them. He advises advertisers to review campaigns that are limited by budget and outperforming, and gradually tighten their performance targets to preserve efficiency.
A short editorial from the VEONIB team on why this content matters.
SEONIB views this update as a removal of a hidden performance advantage many advertisers relied on, making it critical to reassess and realign campaign targets proactively.
Unlike typical updates, this one retroactively removes a benefit many weren't aware they had, requiring precise target recalibration—a subtle but essential SEO/AEO strategy for maintaining ROI.
Small business owners and Google Ads managers using smart bidding should audit budget-limited campaigns immediately and incrementally lower tCPA/tROAS to lock in current efficiency before the change takes effect.
Google's automated bidding strategy that optimizes for conversions.
A campaign that cannot enter all eligible auctions due to daily budget constraints.
A smart bidding strategy that aims to get as many conversions as possible at a specified cost per acquisition.
A smart bidding strategy that aims to maximize conversion value at a specified return on ad spend.
The tendency of budget-limited campaigns to outperform their set targets due to conservative bidding.
A policy change removing the overperformance cushion for budget-limited smart bidding campaigns.
What is the Google Smart Bidding update in August 2026?
It's a change that removes the overperformance cushion for budget-limited campaigns using target CPA or target ROAS, making bids more consistent with set targets.
Who is affected by this update?
Primarily campaigns that are limited by budget and are using target CPA or target ROAS, and currently outperforming their targets.
Why do budget-limited campaigns outperform targets?
Because Google's Smart Bidding system bids conservatively when budget is limited, only entering top auctions, resulting in lower CPA or higher ROAS than the target.
How can I preserve my current CPA after the update?
Gradually lower your target CPA closer to the actual CPA you've been achieving, but only for campaigns that are outperforming and budget-limited.
Should I adjust targets for all campaigns?
No, only for campaigns that are limited by budget and consistently beating their performance targets. Tightening targets on struggling campaigns can hurt performance.
What happens if I increase budget on a budget-limited campaign after the update?
Google expects your performance to stay closer to your target CPA/ROAS instead of changing unpredictably, making scaling more predictable.
Will this update affect campaigns that are not budget-limited?
Google says it primarily impacts budget-limited campaigns; non-budget-limited campaigns are less likely to see any change.
How should I adjust my target CPA?
Make incremental changes, e.g., from $50 to $45 to $40, rather than a single large drop, to avoid shocking the system.
What is the risk of tightening targets on struggling campaigns?
It can reduce clicks, traffic, and overall performance, making an already difficult campaign worse.
Is this update something to panic about?
No, but it requires proactive review and gradual adjustment to maintain current performance levels.