From August 17, 2026, Google will intervene in every campaign running on Target CPA or Target ROAS with the status "Limited by budget." Those currently performing better than the set target will lose that advantage once the budget becomes tight. This is not a minor technical change: it affects Search, Shopping, Performance Max, Demand Gen, and Travel, and thus likely a significant part of your account.
What exactly changes
Campaigns that are budget-limited and running on a target will work more strictly towards that set target. If a campaign is currently performing better, Google will remove that outperformance once the budget enforces it.
Two examples make it concrete:
- A Target CPA of 10 euros with a current CPA of 5 euros will move back towards 10 euros after the update, unless you intervene.
- A Target ROAS of 500% with a current ROAS of 700% will similarly drop back towards the set 500%.
In Performance Max and Demand Gen, this can also affect the distribution of traffic across channels.
Why Google is doing this
The current behavior, where budget-limited campaigns exceed their targets, leads to unpredictable results once you adjust a budget. Google wants the set target to truly determine what you get, making scaling more predictable. A logical step, but one that requires action before the change goes live.
Who this applies to
| Campaign type | Platform |
|---|---|
| Search, Shopping, Performance Max, Travel | Google Ads and Search Ads 360 |
| Demand Gen | Google Ads, Search Ads 360, and Display and Video 360 |
The timeline
| Date | Event | Action for advertisers |
|---|---|---|
| June 22, 2026 | Google announces the change | Take note, map out campaigns |
| July 6, 2026 | Bid Target Adjustment Tool available | Consult tool per campaign |
| Until August 17, 2026 | Preparation period | Adjust targets or consciously leave them |
| August 17, 2026 | Update goes live | Monitor performance for fluctuations |
The initial technical announcement on June 22 caused much discussion in the PPC community. Google responded in July with additional clarification, showing that the impact is greater than a line in the changelog.
The Bid Target Adjustment Tool
Since July 6, a tool is available per campaign in Google Ads with three options:
- Adopt the proposed adjustment, aligning the target with current performance.
- Set your own target based on your own business goals.
- Do nothing, resulting in performance shifting towards the original target after August 17.
There is also a fourth route: switch to Maximize Conversions or Maximize Conversion Value without a target. Note, these strategies spend the entire budget without a fixed target, causing the current CPA or ROAS to fluctuate with each budget change.
Our advice
Don't wait until August 17. Review all campaigns now that are "Limited by budget" and running on tCPA or tROAS. Determine per campaign whether the current actual performance is actually the real goal, or if the set target was always the starting point. Then consciously adjust targets via the new tool, so the control remains with you instead of the algorithm. And continue to monitor performance extra closely after August 17, especially with Performance Max and Demand Gen, where channel shifts can occur.
Source: Google Ads Help Center, changes to target-based bidding strategies.
