Developing
Google says the change makes targets mean what they say. Advertiser reports of lower sales are anecdotal.
In 60 seconds
- Google disclosed on June 15, 2026 a change that began rolling out on August 17 and was completed on August 27.
- Budget-limited Search, Shopping, Performance Max, Demand Gen and Travel campaigns that beat a Target CPA or ROAS are pulled back toward it.
- Google's Ginny Marvin said campaigns overshooting on cost are left alone and capped campaigns would not spend more without a budget increase.
- Some advertisers report lower sales; the evidence so far is anecdotal.
Impact Layer
- What changed
- Over-performing, budget-capped campaigns now trade some efficiency for volume by default.
- Why it matters
- A campaign with a 200% target that ran near 400% may now spend its budget at lower returns, which changes how reported ROAS should be read.
- Who is affected
- Advertisers using Target CPA or Target ROAS on capped budgets, and the agencies that report on them.
- Martech stack area
- Analytics, Advertising
- Stack impact
- Compare ROAS, CPC and conversion volume before and after August 17 for budget-limited campaigns, and check whether your targets still match what you want to pay.
- Business impact
- Moderate From PPC Land's analysis of Google statements, help pages and advertiser reports. The sales-decline reports are individual cases, not a dataset.
- Related technologies
- Related vendors
- What to watch
- Independent CPC data for budget-limited campaigns, and any further Google clarification.
PPC Land’s October 10 analysis traces a bidding change at Google Ads. Google disclosed it on June 15, 2026; rollout began on August 17, and a help page later said the global rollout “was completed on August 27, 2026”.
What changed
- Budget-limited campaigns using Target CPA or Target ROAS that beat their targets are pulled back toward them. Covered types: Search, Shopping, Performance Max, Demand Gen and Travel. App and Video reach/view are excluded.
- Example: a $10 CPA campaign converting at $5 is pulled toward $10; a 200% ROAS campaign running near 400% drifts toward 200%.
- Google’s Ginny Marvin said a campaign with a $100 target converting at $125 is not helped, and that capped campaigns would not spend more without a budget increase. Google’s rationale: targets should mean what they say.
What advertisers report
An analyst’s September charts showed CPCs rising for budget-limited campaigns while cheap clicks flowed to uncapped ones. One advertiser said a Shopping campaign with a 300% target ROAS, which had returned 3,000 to 4,000%, saw sales fall. PPC Land presents these as reports, not a measured effect.
Our read
For an advertiser who wants every efficient sale, a target is a ceiling on cost, not a goal to hit. If your budget is capped and you are beating your target, either raise the budget or tighten the target deliberately, and compare results before and after August 17 before accepting a new baseline.
Sources
- PPC Land: Google optimises its own revenue. Advertisers have to optimise theirs (opens in a new tab)
Source of the change, Google's clarification, the rollout dates and the advertiser and market data cited.