Please note: Starting August 17, 2026, Google will be changing how smart bidding strategies work

How does it work now?

Until now, something unusual happened when a campaign had the “Limited by budget” label
budget) in combination with a Target CPA or Target ROAS. The auction algorithms were forced to be selective and pick out only the very strongest, lowest-cost conversions.

As a result, in practice, you often achieved a much more favorable CPA or ROAS than the target you had originally set in Google Ads (for example, an actual CPA of €5 while your target was set at €10).

What exactly will change starting August 17?

Starting August 17, Google will stop ignoring your set goals due to budget constraints. Campaigns will perform more consistently toward your actual bid goal, regardless of whether your budget is limiting.

If you set a target of €10 but actually achieved €5, Google will adjust your performance starting August 17 to meet that €10 target. As a result, you’ll need to pay closer attention to the CPA targets you use in your campaigns.

Google will not automatically adjust your goals or budgets, but will make a special Bid Target Adjustment Tool available in your Google Ads account starting July 6, 2026. This tool will allow you to review historical performance and make timely adjustments.

Check your campaigns today

Since campaigns often take about two weeks to complete the learning phase, it’s important to make relevant adjustments to your campaigns as soon as possible. Google predicts that the change to the algorithms will be abrupt.

1. Go to ads.google.com
2. Go to Campaigns
3. Select a period of 30–60 days
4. Filter your campaigns by status: Limited by Budget AND will soon be limited by budget
5. Filter your campaigns by bidding strategy: tROAS, tCPA, Maximize Conversions, and Maximize Conversion Value.
6. Review the recent performance of these campaigns.

Please note: These changes are particularly important for campaigns with budget constraints that use a smart bidding strategy , but all campaigns using smart bidding strategies will be affected.

Please note: Every situation is unique. The advice below is a general guideline, but it may not always apply to your specific situation.

Option 1: Increase the budget

When the campaign is performing close to its ROAS or CPA goal, it’s a good idea to increase the campaign budget. Always do this in small increments of about 20% to avoid overspending—and, of course, as long as the budget allows.

Option 2: Adjust CPA or ROAS target

If your campaign’s spend falls below the set target, it may be wise to lower the campaign target to match current performance and then gradually increase it after August 17. This will prevent your campaign from coming to a complete halt on August 17.

Option 3: Return to Maximize Conversions OR Maximize Conversion Value

If a campaign has a long history of outperforming its targets , it’s wise to switch back to a Maximize Conversions or Maximize Conversion Value strategy . This is because the algorithm has already demonstrated that it performs better than the goals you’ve set yourself.

Option 4: Do nothing

If your current performance is below your set target but not too far off, you can also choose to take no action. In that case, starting August 17, the algorithm will pay closer attention to your target, but you do run the risk that your campaign will generate less volume.

Side note

Please note that conversion lag can significantly impact recent performance. Hover over the Conversions or Conversion Value column to see how many conversions are expected for the selected period.

Carefully consider the actual ROAS or CPA the campaign needs to perform well. A CPA of 50 is fine if the target is 5, but when the update rolls out, that campaign could collapse. In such a case, it’s safer to switch to a “Maximize Conversions” or “Maximize Conversion Value” bidding strategy.

Want to learn more about this Smart Bidding update?

See the full technical explanation and guidelines in Google’s official announcement: Google Ads Help – Changes to goal-based bidding strategies.

Would you like to see a visual explanation of what this means for your accounts in practice? Then check out Aaron Young’s insightful analysis on YouTube: Google Ads Smart Bidding Update [what it REALLY means for you].

Not sure which approach is best for your campaign? Or would you like a specialist to take a look? Contact us!