A Google Ads consultant explains the new update to Target CPA and Target ROAS Smart Bidding strategies effective August 17. Google will now strictly adhere to the CPA or ROAS targets set, no longer delivering cheaper results. The update also affects limited by budget campaigns and makes scaling easier.
A short editorial from the VEONIB team on why this content matters.
Google's latest update forces advertisers to set precise CPA/ROAS targets without expecting cheaper results, making bid strategies more rigid but stable.
Unlike typical updates that add flexibility, this one removes the 'bonus' efficiency, demanding advertisers to be more data-driven. SEONIB recommends using historical performance data to set exact targets.
Advertisers using Target CPA or ROAS should review their last 30 days of data and update targets before August 17 to avoid performance drops.
A Google Ads bid strategy that aims to get as many conversions as possible at a specified cost per acquisition.
A bid strategy that targets a specific return on ad spend based on conversion value.
Automated bidding strategies that use machine learning to optimize for conversions in Google Ads.
A campaign status indicating that the daily budget is too low to achieve full potential delivery.
A set of rules that determines how much you bid for clicks or conversions in Google Ads.
A change in Google's advertising platform that affects how campaigns run and perform.
Increasing a campaign's budget while maintaining stable performance metrics.
The monetary value assigned to each conversion for calculating ROAS.
What is the new Google Ads update about?
It changes how Target CPA and Target ROAS Smart Bidding strategies work, making Google strictly adhere to the set targets.
When does the update take effect?
It takes effect on August 17. You must manually update your targets before that date.
How will Target CPA change?
Google will no longer deliver conversions cheaper than your set target; it will now aim to spend exactly at the target CPA.
Will Google still deliver cheaper conversions?
No, after the update, Google will not deliver conversions below the set Target CPA.
What about limited by budget campaigns?
Google will now spend aggressively up to your budget limit instead of holding back due to budget constraints.
How does scaling become easier?
Increasing your daily budget will no longer cause significant fluctuations in CPA or ROAS, making scaling more predictable.
Do I need to change my targets manually?
Yes, the update is not automatic; you must go into your campaigns and adjust the targets accordingly.
What should I base my new target on?
Use your last 30 days of actual performance data to set a realistic target.
How does this affect Target ROAS?
Similar to Target CPA, Google will now deliver results exactly at the set ROAS, not higher.
Can I still use these strategies if I'm not satisfied with performance?
It is recommended to use Target CPA or ROAS only when you are satisfied with the current results; otherwise, consider other bid strategies.