Video Insights

Google Ads’ Upcoming Bidding Update Is Creating Controversy | EP. 442

Source: Google Ads’ Upcoming Bidding Update Is Creating Controversy | EP. 442 · Published 2026-08-24 · By VEONIB

In this video

The video covers Google Ads' controversial smart bidding update coming August 17, 2026, which alters bidding behavior for budget-constrained campaigns to be more predictable but potentially less efficient. Hosts Greg Finn, Jess Bud, and Julia Matir dissect confusing communications from Google's Jenny Marvin and industry backlash, plus other news like Google Images' 25th anniversary redesign and a new AI performance report in Merchant Center.

VEONIB's Perspective

Our take on this video

A short editorial from the VEONIB team on why this content matters.

Summary

This episode exposes Google's chaotic communication around a bidding update that effectively introduces a second, hidden smart bidding type for budget-constrained campaigns.

Insight

Unlike typical coverage, the hosts dig into the contradictory PR statements from Google, revealing a real-world impact that many pundits ignore: the 'limited by budget' label is often misleading and can trigger unwanted behavior.

Recommendation

PPC managers should audit campaigns with the limited-by-budget label, consider switching to maximize conversion value, and keep targets realistic to avoid efficiency loss.

Key Insights

Key Terms

#Smart bidding

Google's automated bid strategy that adjusts bids to meet performance goals.

#Target CPA

A smart bidding strategy that aims to get as many conversions as possible at a target cost per acquisition.

#Budget constrained

A campaign state where the daily budget limits the number of conversions or spend.

#Limited by budget

A Google Ads label indicating a campaign could spend more if the budget were increased.

#ROAS target

Target return on ad spend; a smart bidding goal for revenue per dollar spent.

#Maximize conversions

A bid strategy that spends the full budget to get the most conversions without a target.

#AI overviews

Google's AI-generated search summaries that may appear in search results.

Frequently Asked Questions

What is the main controversy in this video?

Google's upcoming smart bidding change for budget-constrained campaigns on August 17, 2026, which may reduce efficiency and create confusion about how bidding actually behaves.

Who is affected by the smart bidding update?

Campaigns using target CPA or target ROAS that are labeled 'limited by budget' will see changed bidding behavior.

What does Google say the update does?

Google says it makes bidding more predictable when a campaign is budget-constrained, aligning performance with the target.

Why are advertisers upset?

Many campaigns currently overperform targets (e.g., $5 CPA on a $10 target), and the update will push costs up to the target, reducing efficiency.

How can advertisers maintain current performance?

Google recommends adjusting the bid target to match the actual current average cost or ROAS, and to avoid budget-constrained status.

Does the update create two separate smart bidding types?

The hosts argue yes: one for unconstrained campaigns (smart) and one for budget-constrained (semi-smart), even though Google denies it.

What is the 'limited by budget' label issue?

The label can appear even when campaigns spend only ~76% of the daily budget, potentially triggering the new bidding behavior incorrectly.

What is the recommended alternative to target bidding?

Using 'maximize conversions' or 'maximize conversion value' may be better for budget-constrained campaigns, as it spends the full budget without a target.

What other news does the video cover?

Google Images' 25th anniversary homepage redesign, a new AI performance report in Merchant Center, and various PPC updates like ad preview filtering and IP address use in Europe.

Who should take action on this update?

PPC managers and digital marketers who use target CPA or target ROAS campaigns with limited budgets should review their accounts before August 17.

Recommended Reading

Turn Any Product URL into a Stunning Video Ad

Paste a product link. AI extracts images, features, and selling points to create a high-converting video in minutes.

Generate from URL
No credit card required · Free tier available