Google Ads Changes 2026: New Bidding Strategies from August 17

Google Ads continues to evolve its automated bidding systems, and the next major change will arrive on August 17, 2026. The update particularly affects campaigns using goal-based Google Ads bidding strategies, such as Target CPA or Target ROAS, when those campaigns are also limited by budget.

The main consequence is particularly important for advertisers who are currently achieving results that outperform their configured target. If a campaign has, for example, a Target CPA of €20 but is consistently generating conversions at around €12, after the update Google Ads will tend to optimize more consistently toward the target that has been set.

This makes reviewing bidding targets one of the most important tasks before the update. Target CPA and Target ROAS will become even clearer as economic reference points that Google Ads uses to guide campaign automation.

Google has communicated this update to affected advertisers and explains that its aim is to achieve more consistent and predictable behavior in relation to the targets that have been defined, even when campaign budgets are adjusted.

For those of us who regularly work with Google Ads campaigns, SEM and digital advertising, this is a particularly relevant update because it strengthens the relationship between automation, profitability and business strategy.

August 2026 is therefore a good time to review campaigns, budgets, historical data and Google Ads bidding strategies. This review becomes especially important when there is a significant difference between the configured target and the performance the campaign is actually achieving.

What changes in Google Ads on August 17, 2026?

Starting August 17, 2026, Google Ads will update the behavior of budget-limited campaigns using certain goal-based bidding strategies. The system will aim to deliver performance that is more consistent with the CPA, ROAS or CPC target set by the advertiser.

This means that a campaign that has previously been significantly outperforming its target may begin to move more clearly toward the configured benchmark.

For example, a budget-limited campaign may have a Target CPA of €20 while generating conversions at €12. If the advertiser keeps that Target CPA after the update, Google has room to pursue additional volume while gradually moving closer to the specified target.

The change mainly affects:

• Target CPA.
• Target ROAS.
• Target CPC in Demand Gen campaigns.

Google states that the update affects Search, Shopping, Performance Max, Demand Gen and Travel campaigns, provided they use the affected strategies and are limited by budget.

Google will not automatically change campaign bidding targets or budgets. Advertisers therefore need to review whether their current settings still accurately reflect their commercial objectives.

Changes to Google Ads bidding strategies in August 2026

A campaign may have, for example, a Target CPA of €20 while generating conversions at a considerably lower average cost. This situation is particularly relevant when Google Ads also identifies the campaign as limited by budget.

Until now, certain campaigns with budget restrictions could achieve performance considerably better than the stated target. This could be positive from a profitability perspective, but it could also lead to variations when the budget was subsequently increased in an attempt to scale the campaign.

In the information published about the Google Ads changes in 2026, Google explains that the new behavior is intended to produce more consistent and predictable results in relation to the target that has been set.

The practical consequence is that configured targets become even more important within Google Ads automated bidding strategies. A Target CPA should reasonably represent how much a company can afford to pay for a conversion, while a Target ROAS should be connected to the return the business needs to obtain from its advertising investment.

For example, setting a Target CPA of €30 tells Google Ads that this average acquisition cost can fit within the company’s customer acquisition strategy. A Target ROAS of 500% indicates that we are aiming to generate approximately five euros in conversion value for every euro invested.

Google Ads uses this information to assess the opportunities available in each auction and adapt the bid according to the probability or expected value of a conversion.

The choice of campaign type is also part of this planning. In my analysis of the differences between Google Ads Display and Search campaigns, I explain the characteristics and objectives of both advertising models.

Target CPA in Google Ads: how it affects bidding strategies

Google Ads Target CPA, or target cost per acquisition, represents the average cost we want to achieve for our conversions. Smart Bidding uses this value as a reference to automatically calculate bids in each auction.

This does not mean that every conversion will be generated at exactly that cost. Some conversions may cost more and others less. What matters is that Google uses the target as a benchmark to guide the overall behavior of the bidding strategy.

Imagine a campaign with a Target CPA of €20 that has been generating conversions at an average cost of €12 for several weeks. There is a significant difference between the target communicated to the algorithm and the campaign’s actual performance.

After the Google Ads changes on August 17, that difference deserves even more attention if the campaign is limited by budget.

We can keep that CPA when the company accepts the cost and wants to give the system room to increase volume. We can also consider a Target CPA closer to historical performance when we want to maintain a particular level of efficiency.

The decision should be connected to variables such as commercial margin, customer value, lead quality, closing rate, repeat purchases and the company’s ability to handle a greater volume of opportunities.

It is also essential that the conversions used by Google Ads represent relevant actions. In my guide on how to configure Google Ads conversions in WordPress, I explain how to set up measurement correctly in order to provide better signals to bidding strategies.

For lead generation, we can go a step further by incorporating information about qualified leads, sales opportunities and actual customers. This connection between acquisition, measurement and business performance forms part of my Google Ads management, SEM and PPC services.

Target ROAS in Google Ads and value-based bidding strategies

In ecommerce and businesses that correctly record the economic value of their conversions, Google Ads Target ROAS makes it possible to orient bidding strategies toward a specific return on advertising spend.

A Target ROAS of 500%, for example, means that we aim to generate approximately five euros in conversion value for every euro invested. Smart Bidding uses the available data and signals from each auction to estimate the potential value of a conversion and adjust bids accordingly.

The August 17 update becomes particularly relevant when a campaign has consistently achieved an actual ROAS that is considerably higher than the configured target.

An ecommerce business with a Target ROAS of 400% and typical performance close to 650% has highly useful information available when reviewing its bidding strategy.

Keeping the 400% target can give the algorithm more room to increase sales volume if additional budget is available and the business remains profitable. Raising the Target ROAS toward values closer to historical performance may make sense when efficiency is the greater priority.

This decision should take into account product margins, average order value, repeat purchases, costs associated with the sale and customer lifetime value.

A Google Ads and performance-focused digital advertising strategy makes much more sense when CPA, ROAS and conversions are connected to the company’s actual financial performance.

Budget-limited campaigns in Google Ads

One of the central elements of the update is the relationship between budget-limited campaigns in Google Ads and goal-based bidding strategies.

This status indicates that the available budget is restricting the campaign’s ability to participate in all the opportunities it could potentially access.

These campaigns can present a particularly interesting combination: an actual CPA below the Target CPA, or an actual ROAS above the configured target, together with a budget that is limiting investment capacity.

Suppose a company can profitably afford to pay up to €30 for a conversion and Google Ads is generating them at around €18. If additional demand exists, the system potentially has financial room to pursue more conversions within the benchmark set by the advertiser.

The change announced for August aims to make the behavior of these campaigns more predictable when budgets are adjusted.

Google wants a budget-limited campaign to continue optimizing more consistently toward the configured Target CPA or Target ROAS even when the investment is increased.

This also makes it necessary to review historical targets. A figure configured several months ago may still be perfectly valid, or it may no longer reflect current conditions after changes in prices, margins, conversion rates, competition or commercial capacity.

Which Google Ads campaigns should be reviewed before August 17?

The review can begin by identifying all campaigns using goal-based bidding strategies and comparing their settings with the results achieved over a sufficiently representative period.

Priority should be given to budget-limited campaigns that are achieving results better than their configured CPA or ROAS target.

It is particularly useful to review campaigns where several of the following factors occur together:

• Target CPA or Target ROAS is configured.
• The campaign is limited by budget.
• There is a significant difference between the target and actual performance.
• There is sufficient conversion volume.
• Historical data is representative.
• Business profitability has been demonstrated.
• The company has the capacity to handle additional conversions or sales.

Choosing the right analysis period is also important. Seasonality, promotions, competition and changes in demand can create temporary variations. A trend maintained for several weeks provides a much stronger reference than just a few days of results.

A positive difference between target and performance also does not automatically mean that the strategy should be changed. That margin may be precisely what enables a profitable campaign to scale.

Which campaign types are affected by the Google Ads changes in 2026?

Google specifically states that the update may affect Search, Shopping, Performance Max, Demand Gen and Travel campaigns when they meet the specified conditions.

Demand Gen also has a particular feature: the change extends to the Target CPC strategy used in this type of campaign.

In multi-channel campaigns such as Performance Max and Demand Gen, changes may also appear in how traffic is distributed across different channels while Google Ads attempts to move more consistently toward the configured target.

The change affects the behavior of bidding strategies and does not represent a change to the basic operation of Google Ads advertising auctions.

What I would review before changing a campaign

Before modifying Target CPA, Target ROAS or budget, I would review recent historical performance and determine whether the difference between the target and actual results reflects a deliberate strategic decision or simply a setting that has not been updated for too long.

My review would include:

• Identifying campaigns that are limited by budget.
• Checking the bidding strategy being used.
• Comparing Target CPA with actual CPA.
• Comparing Target ROAS with actual ROAS.
• Reviewing conversion volume and quality.
• Analyzing margins and business profitability.
• Checking whether there is capacity to scale the campaign.
• Reviewing the Google Ads target adjustment tool.
• Recording any changes made so their effects can be analyzed later.

There is no universal figure that every advertiser should use as a new target. A CPA of €15 may be excellent for one company and insufficient for another. A ROAS of 300% may deliver strong profitability for one business while falling below the minimum required by another.

That is precisely why this update should be treated as an opportunity to connect Google Ads bidding strategies with each company’s real financial objectives.

Tool for adjusting Google Ads bidding targets

Since July 6, 2026, Google has provided a specific tool for reviewing and adjusting the bidding targets of campaigns that may be affected by this update.

The tool allows advertisers to compare the configured target with historical campaign performance and evaluate whether to keep the current CPA or ROAS or adjust it toward more recent results.

The absence of an automatic recommendation does not necessarily mean that a campaign is unaffected by the change. For this reason, budget-limited campaigns should also be reviewed manually.

A campaign with a Target CPA of €20 and stable conversions at around €14 can keep its existing target when the priority is to increase volume, or move it closer to historical performance when the priority is to maintain efficiency closer to current levels.

Google will also not automatically modify Target CPA, Target ROAS or the campaign’s daily budget.

You can find the full details in the official Google Ads documentation on changes to goal-based bidding strategies.

Smart Bidding and automated bidding strategies

The update also reflects the growing importance of Smart Bidding in Google Ads. These strategies use artificial intelligence and machine learning to analyze different signals and calculate a specific bid for each auction.

This is not simply a matter of setting a fixed amount for every opportunity. The system can analyze the context of each auction to assess the probability of conversion or the potential value it could generate.

Strategic work is increasingly focused on providing the algorithm with good reference points: relevant conversions, reliable values, coherent budgets and targets that are compatible with company profitability.

Together, Target CPA, Target ROAS, budget and conversions form a connected system. Smart Bidding makes bidding decisions in each auction, while the strategic configuration determines the results toward which we want to direct that automation.

Artificial intelligence expands analytical capabilities, but defining the objective remains a business decision. Google Ads can optimize toward a particular CPA, but we must first determine whether acquiring customers at that cost is profitable.

Conversion quality in Smart Bidding strategies

In lead generation campaigns, we can begin by measuring submitted forms, calls or commercial enquiries. With more advanced measurement, we can incorporate information about qualified leads, sales opportunities and closed sales.

Two campaigns can generate exactly the same number of conversions while producing completely different financial results. If we can provide the system with information about which contacts eventually become customers, Google Ads receives signals that are much closer to actual business performance.

In ecommerce, we can provide precise conversion values and help the system differentiate between transactions with different economic values.

This evolution has similarities with the development of artificial intelligence applied to search engines. In my work as a GEO consultant and specialist in AI search visibility, I also see how data quality, authority and a properly defined strategy are becoming increasingly important.

This approach to Google Ads is also reflected in my professional and teaching activity. You can find more information about my SEO, SEM, Google Ads and digital marketing training and the subjects I teach.

Performance Max and Google Ads bidding strategies

Performance Max is one of the clearest examples of the growing importance of automation within Google Ads. These campaigns use different inventories, signals and assets to pursue conversions or conversion value in accordance with the configured objectives.

When we use Performance Max with Target CPA or Target ROAS, it is particularly important that these figures accurately reflect the economic reality of the project.

The algorithm has considerable freedom to distribute investment across different opportunities and needs a clear reference point for the result we want to achieve.

After the August 17 update, I would pay particular attention to:

• Actual CPA.
• Actual ROAS.
• Total conversion volume.
• Conversion value.
• Budget spent.
• Distribution of spend.
• Overall campaign profitability.

These metrics should be analyzed together. A slightly higher CPA may still be attractive when it generates a significant increase in volume while maintaining suitable profitability. Similarly, a slightly lower ROAS may be acceptable when it enables a considerable increase in the total value generated.

In Performance Max, traffic distribution between channels may also change while the system works toward achieving the configured target more consistently.

How to use CPA, ROAS and budget to scale Google Ads campaigns

One of the most interesting aspects of the Google Ads changes in 2026 is the opportunity to scale Google Ads campaigns that are already performing well.

Suppose a company can profitably afford a maximum acquisition cost of €30 per new customer and Google Ads is currently generating conversions at €18. If the campaign is limited by budget, there is financial room to explore additional opportunities.

The strategic decision involves finding the right balance between volume and profitability.

Generating 50 conversions at €15 may represent an excellent result, but generating 100 conversions at €20 can also be a very strong business decision when sufficient margin remains and the company has the capacity to handle that growth.

This is why I consider it important to distinguish between achieving a better advertising metric and achieving a better business result. Constantly reducing CPA or continuously increasing ROAS can ultimately limit growth when additional profitable demand exists.

One campaign may accept a slightly higher CPA and generate many more sales. Another company may need to protect a minimum margin and prioritize a high ROAS. Google Ads provides the automation tools, while the strategy depends on the economics of each individual project.

You can see examples of previous work in my SEO, SEM and digital marketing project portfolio.

What to analyze after the changes to Google Ads bidding strategies

Once the update comes into effect, campaign performance should be compared over a sufficiently representative period to determine how results evolve in relation to the configured targets.

Google warns that temporary fluctuations in traffic and performance may occur. Initial results should therefore be interpreted while taking into account each campaign’s normal conversion cycle.

The main metrics I would analyze are:

• CPA before and after the change.
• ROAS before and after the update.
• Number of conversions.
• Total conversion value.
• Daily and monthly investment.
• Traffic volume.
• Quality of the conversions generated.
• Distribution of investment in multi-channel campaigns.

It is also useful to record any changes made to budget, Target CPA or Target ROAS. This makes it much easier to subsequently connect changes in performance with the decisions that were made.

The main question will be whether the new bidding behavior manages to move consistently toward the configured target while maintaining appropriate volume and profitability for the business.

My opinion as an SEO, SEM and Google Ads expert on the new bidding strategies

As an SEO, SEM and Google Ads expert, I believe the change announced for August 2026 follows a logical direction in the evolution of the platform. When we set a Target CPA or Target ROAS, we are providing the system with an economic benchmark, and it makes sense for Google to attempt to use that benchmark increasingly consistently.

The truly important point for advertisers is to understand that the configured target matters more than ever. If a campaign has a Target CPA of €30 and has been generating conversions at around €15 for several weeks, we need to decide what we want to do with that margin.

We can maintain a more flexible target when the priority is to access additional demand and grow within a cost that remains profitable. We can also bring the target closer to historical performance when the business strategy is more focused on maintaining particular levels of efficiency.

Neither decision is automatically better. The answer depends on margin, customer value, closing rate, commercial capacity and the company’s growth priorities.

In my experience managing Google Ads campaigns and SEM strategies, looking only at CPA or ROAS usually provides an incomplete picture. A campaign should also be assessed according to conversion quality, the sales generated and the final profitability it contributes to the business.

For me, the key is connecting Google Ads, bidding strategies, profitability, data and commercial strategy. Artificial intelligence can analyze an enormous number of signals and calculate bids in real time, while our role is to decide what we want to achieve, what each conversion is worth and how much we can invest to obtain it.

The evolution of Google Ads is also not simply about replacing human work with automation. The work itself is changing: we spend less time manually modifying individual bids and more time correctly defining conversions, objectives, values, budgets and signals that enable the system to optimize toward useful outcomes.

As an SEO, SEM and digital marketing expert, I work precisely at the intersection of search visibility, digital advertising, analytics and artificial intelligence applied to business.

You can also follow my content about SEO, Google Ads, marketing and artificial intelligence on my professional LinkedIn profile and my Instagram profile.

You can also visit my Google Business profile as an SEO and digital marketing consultant in Alicante.

If you want to improve the performance of your campaigns, you can get in touch through my contact page for SEO, SEM and Google Ads services.

Bibliography and sources on the Google Ads changes in 2026

This analysis is based on the official communication sent by Google Ads to advertisers and the documentation published by Google about Smart Bidding, Target CPA, Target ROAS and the changes taking effect from August 17, 2026.

The main sources used to analyze the new bidding strategies and the behavior of budget-limited campaigns are:

• Google Ads. Official communication sent to advertisers regarding the review of goal-based bidding strategies and the implementation of the changes from August 17, 2026.
• Google Ads Help. official Google Ads changes to goal-based bidding strategies.
• Google Ads Help. frequently asked questions about changes to Target CPA and Target ROAS in Google Ads.
• Google Ads Help. official documentation on Target CPA and Google Ads Smart Bidding.
• Google Ads Help. official documentation on Target ROAS and value-based bidding strategies.

Official Google Ads documentation will remain the main reference for any future developments related to Smart Bidding, Target CPA, Target ROAS, Performance Max and Google Ads bidding strategies.

The changes coming on August 17, 2026 make reviewing bidding targets particularly important. The more accurately CPA, ROAS, conversions and budgets reflect the economic reality of the business, the more effectively Google Ads automation can be used to achieve profitable growth.

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