Changes to bidding strategies in Google Ads from 17 August!
Google Ads campaigns running on target-based bidding strategies, such as Target ROAS or Target CPA, will undergo a fundamental change to how they work from mid-August 2026.
Until now, the algorithm has continued to aim for maximum efficiency even when campaigns were limited by their budget and the specified Target ROAS or Target CPA still allowed room for improvement. As a result, ROAS and CPA figures were sometimes achieved that were even better than the target values.
From mid-August, the algorithm will strictly use the specified target values as guidelines and aim precisely for these, even if better ROAS and CPA figures were possible.
The aim is to make campaigns more scalable and predictable following budget adjustments, and to generate more volume and revenue at the specified target values.
However, the update also carries risks: If the ROAS target is set too low or the target CPA too high, campaigns may, in the worst-case scenario, perform worse whilst incurring higher costs.
Campaigns that are budget-constrained and running with a target ROAS or target CPA should therefore be reviewed before 17 August, and the targets adjusted as closely as possible to actual and desired performance.
