This video explains a major Google Ads update on August 17, 2026, affecting target-based bidding strategies like target CPA and target ROAS. Campaigns labeled as limited by budget will now perform closer to the set target, meaning advertisers who were overperforming (e.g., achieving $5 CPA on a $10 target) will see fewer conversions. The creator warns that unprepared advertisers may face increased costs and provides a decision tree to review and adjust bidding targets before the change takes effect.
A short editorial from the VEONIB team on why this content matters.
This update forces advertisers to align their bidding targets with real business goals or face a drop in conversions. It stops Google from overdelivering and makes performance more rigid.
Unlike typical price hikes, this update hides the cost increase in 'better predictability.' SEONIB sees it as a strategic move to push advertisers toward higher budgets or less efficient spend, benefiting Google's bottom line.
Advertisers using target CPA or ROAS should review their 'limited by budget' campaigns immediately and either raise budgets or adjust targets to avoid losing conversions after August 17.
A Google Ads automated bidding strategy that aims to get as many conversions as possible at or below a set cost-per-acquisition target.
A Google Ads automated bidding strategy that targets a specific return on ad spend, e.g., 500% meaning $5 revenue per $1 spend.
A campaign status indicating that the daily budget is the main constraint on performance, often limiting the number of conversions achievable.
When a campaign performs significantly better than the bid target, e.g., achieving a $5 CPA on a $10 target – a common behavior before the update.
A manual change to bids (e.g., device, location) that can affect how the bidding algorithm optimizes toward the target.
Inconsistent results in conversions or cost that occur when budgets are changed; the update aims to reduce this for budget-limited campaigns.
Ensuring that your target CPA or ROAS reflects the actual profitability or cost tolerance of your business, not an arbitrary number.
The creator's view that the update forces advertisers to spend more to maintain volume, as Google no longer overdelivers for free.
When is the Google Ads target bidding update happening?
The update takes effect on August 17, 2026.
Which campaigns are affected by this update?
Campaigns using target-based bidding strategies (target CPA, target ROAS) that are labeled as 'limited by budget'.
How will the update change campaign performance?
Instead of overdelivering (e.g., $5 CPA on a $10 target), campaigns will now deliver closer to the set target, which may reduce conversion volume for those who were beating their targets.
What should I do if my campaign is limited by budget and beating its target?
You can either increase your budget to get more conversions at the current efficient rate, or raise your target to match actual performance. Otherwise, after the update, conversions will drop.
Will Google automatically adjust my bidding targets?
No, Google will not automatically adjust your targets or budgets. You must manually update them.
Is there a tool to help review my campaigns before the update?
Yes, a new tool starts rolling out on July 6, 2026, that lets you review historical campaign performance and quickly apply updates.
Does this update apply to all campaign types?
It applies to Search, Shopping, Performance Max, Demand Gen, Display, Hotel, and Travel campaigns using target-based bidding.
Why does the creator call this a 'money grab'?
Because advertisers who were getting cheap conversions (e.g., $5 instead of $10) will now have to pay more per conversion or accept fewer conversions, benefiting Google's ad revenue.
What if my current target already matches my actual CPA or ROAS?
Then no action is needed – the update will maintain performance as is.
How can I tell if my campaign is 'limited by budget'?
Check the campaign status column in Google Ads; it will show 'Limited by budget' if the budget is the primary constraint.