Video Insights

Google Ads August 17 Update: Why Performance Tanked & Fixes

Source: Why Your Google Ads Performance Tanked (The August 17 Update Explained) · Published 2026-10-09 · By VEONIB

In this video

The August 17 Google Ads update changed how limited-by-budget campaigns with target-based bidding perform, often causing worse results. This video explains the change and offers strategies to recover performance.

VEONIB's Perspective

Our take on this video

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

Summary

The August 17 update removed Google's auction handpicking for limited-by-budget campaigns, forcing advertisers to adapt with stricter targets or higher budgets.

Insight

SEONIB notes this update underscores the need for AI-driven bid management to dynamically balance budget and targets, a gap many manual advertisers miss.

Recommendation

Advertisers struggling post-update should watch this video, then use SEONIB's AI tools to automate bid adjustments and recover performance.

Key Insights

Key Terms

#Limited by budget

A campaign status indicating your budget is restricting its potential reach.

#Target ROAS

A bid strategy where you set a desired return on ad spend for Google to aim for.

#Target CPA

A bid strategy where you set a desired cost per acquisition for Google to aim for.

#Impression share

The percentage of eligible impressions your ads received.

#CPC

Cost per click, the amount you pay for each ad click.

#Bid strategy

The method Google uses to set bids for your ads, such as target ROAS or maximize conversions.

#Ad auction

The process where Google selects ads to show and determines their order.

#Performance target

The goal you set for your campaign, like a specific ROAS or CPA.

Frequently Asked Questions

What was the August 17 Google Ads update?

It changed how limited-by-budget campaigns with target-based bidding perform, aiming for more consistent results when budgets are adjusted.

Why did my Google Ads performance drop after August 17?

Google no longer handpicks auctions or suppresses CPCs for limited-by-budget campaigns, leading to higher costs and fewer conversions.

How does the update affect target ROAS campaigns?

Previously, Google might outperform your target ROAS; now it aims to hit exactly your target, often resulting in lower returns.

What can I do if my performance tanked?

You can raise your budget, tighten your performance targets, or combine both. Experimental options include switching bid strategies or recreating campaigns.

Should I raise my budget to recover performance?

If you're willing to sacrifice some efficiency for more volume, raising the budget can help you enter more auctions and regain lost sales.

Will tightening my ROAS target help?

Yes, it can improve efficiency, but you'll likely see less revenue because Google won't suppress CPCs or handpick auctions.

What are experimental fixes for the update?

Switching to maximize conversions or pausing and recreating campaigns are experimental tactics some advertisers are testing.

Are campaigns not limited by budget affected?

Some evidence shows they may perform slightly better due to less competition from limited-by-budget campaigns entering fewer auctions.

How can I monitor the impact of the update?

Track metrics like impression share, CPC, conversion rate, and ROAS to see changes and adjust your strategy accordingly.

Is there a way to revert to previous performance?

No, the update is permanent, but you can adapt by adjusting budgets, targets, or bidding strategies to find a new optimal setup.

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