Google Ads is changing its bidding system on August 17, and while the company promises more predictable performance, the shift could actually create unpredictable swings for advertisers who aren’t prepared.
The update affects target-based bidding strategies — specifically cost per acquisition (CPA) and target return on ad spend (tROAS). Under the new system, the system will push actual campaign performance closer to the advertiser’s stated goal. If an advertiser sets a tROAS of 300%, it will aim to hit that number even if the campaign is currently performing at 500%.
That sounds straightforward, but it marks a meaningful shift. Target bid strategies were supposed to already work this way. The company now says hitting the goal is the priority, not exceeding it.
Who gets hit hardest
It says the change will only impact budget-limited campaigns — those where the daily or monthly budget restricts how much the system can spend. But they should review all campaigns anyway, because the effects could ripple through an account in unexpected ways.
Some campaigns that have been consistently outperforming their targets by a large margin will see performance dialed back.
That’s great for efficiency if you’re trying to hit a specific number. It’s a problem if you’ve been relying on that extra margin to compensate for weaker campaigns elsewhere in the account.
Advertisers need to establish their own preferences before the change takes effect, including whether targets are set at the account level or per campaign, whether they are absolute thresholds or best-effort goals, and whether individual campaign budgets need to adjust.
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There’s a tension here that’s worth understanding.
Its system is designed to optimize toward a single number, but most advertisers manage multiple campaigns with different objectives. A campaign that is outperforming its target by a wide margin might be subsidizing a new product launch that is running at a lower return. After August 17, that balancing act gets harder unless you’re deliberate about the settings.
What the new tool shows
The company has introduced a bid target adjustment tool to help with the transition. It displays current targets alongside recent performance for each campaign.
In one example, a campaign had a target ROAS of 130% but was actually delivering 145.74%. Without any changes, the system will optimize it downward to the target.
The tool gives advertisers four options to respond.
First, do nothing.
If you’re fine with your current ROAS dropping to the target, the system handles it automatically. No action required.
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Second, increase the target.
If actual performance has consistently exceeded the target, they can raise the goal to align with reality. The company recommends increasing the target gradually — no more than 20% at a time. For example, if the recent return is much higher than the target, increase the target by a percentage and re-evaluate after two weeks.
Third, set a custom adjustment.
This is for situations where a gradual change doesn’t make sense. If the current target is clearly too low and a realistic higher goal is achievable, they should set the new goal directly rather than creeping up in stages.
Fourth, switch strategies entirely.
If the goal is to generate as many conversions or as much revenue as possible within a fixed budget, switching to maximize conversions or conversion value may make more sense. The trade-off is clear: volume will likely increase, but efficiency will decline.
Advertisers should test the new system with small adjustments before making large changes across the account. The August 17 deadline is firm, and the bidding behavior will shift whether or not you’re ready for it.
