If you’ve logged into Google Ads recently, you’ve probably seen a notification that looks something like this:
Review your campaign targets
Starting August 17, 2026, campaigns with bid targets (for example CPA or ROAS target) will provide more consistent performance when limited by budget, even after budget adjustments. Review these campaigns to ensure targets align with your objectives. Targets will not be updated automatically.
Review your campaign targets
Starting August 17, 2026, campaigns with bid targets (for example CPA or ROAS target) will provide more consistent performance when limited by budget, even after budget adjustments. Review these campaigns to ensure targets align with your objectives. Targets will not be updated automatically.
As is often the case with Google Ads announcements, the reaction across LinkedIn and the PPC community has been mixed. Some see it as another example of Google encouraging advertisers to spend more. Others believe it’s simply a change in how Smart Bidding behaves.
The reality is a little more nuanced.
The good news is that Google is not automatically changing your Target CPA or Target ROAS settings. If you do nothing, your campaigns will continue running. However, if you’re using Smart Bidding strategies and your campaigns are regularly limited by budget, it’s worth understanding what is changing and whether your existing targets still reflect your commercial objectives.
In this article, we’ll explain what the update means, which campaigns are affected and the practical steps you should consider before Google’s August 2026 Smart Bidding update rolls out.
The reality is a little more nuanced.
The good news is that Google is not automatically changing your Target CPA or Target ROAS settings. If you do nothing, your campaigns will continue running. However, if you’re using Smart Bidding strategies and your campaigns are regularly limited by budget, it’s worth understanding what is changing and whether your existing targets still reflect your commercial objectives.
In this article, we’ll explain what the update means, which campaigns are affected and the practical steps you should consider before Google’s August 2026 Smart Bidding update rolls out.
What Is Changing in Google’s August 2026 Update?
The wording of Google’s announcement is relatively short, but it introduces an important behavioural change for campaigns using target-based bidding strategies.
Historically, many advertisers have noticed that budget-limited campaigns often outperformed their stated Target CPA or Target ROAS. For example, a campaign with a Target CPA of £40 might consistently deliver conversions at £28 while remaining limited by budget.
As part of Google’s August 2026 update, campaigns using Target CPA and Target ROAS while limited by budget will optimise more consistently towards the targets advertisers have set.
That doesn’t necessarily mean your acquisition costs will immediately increase. It does mean that advertisers should no longer assume Google’s bidding system will continue significantly outperforming their stated targets over a sustained period.
In simple terms, Google is encouraging advertisers to review whether their Target CPA or Target ROAS still reflects what they actually want to achieve.
Historically, many advertisers have noticed that budget-limited campaigns often outperformed their stated Target CPA or Target ROAS. For example, a campaign with a Target CPA of £40 might consistently deliver conversions at £28 while remaining limited by budget.
As part of Google’s August 2026 update, campaigns using Target CPA and Target ROAS while limited by budget will optimise more consistently towards the targets advertisers have set.
That doesn’t necessarily mean your acquisition costs will immediately increase. It does mean that advertisers should no longer assume Google’s bidding system will continue significantly outperforming their stated targets over a sustained period.
In simple terms, Google is encouraging advertisers to review whether their Target CPA or Target ROAS still reflects what they actually want to achieve.
Which Campaigns Are Affected?
This update primarily affects campaigns that combine two conditions.
Firstly, they use a target-based Smart Bidding strategy, such as:
Firstly, they use a target-based Smart Bidding strategy, such as:
Secondly, they are regularly limited by budget.
If your campaigns don’t use these bidding strategies, or they’re not budget constrained, this update is unlikely to have a significant impact.
For advertisers managing larger accounts, it’s worth reviewing every campaign individually rather than assuming the update applies equally across the account.
If your campaigns don’t use these bidding strategies, or they’re not budget constrained, this update is unlikely to have a significant impact.
For advertisers managing larger accounts, it’s worth reviewing every campaign individually rather than assuming the update applies equally across the account.
Why This Matters
The word target has always been part of Target CPA and Target ROAS, yet many advertisers have gradually started treating those values more like guidelines than genuine business objectives.
This update effectively asks a simple question:
Does your target still represent what you’re actually trying to achieve?
If the answer is yes, there may be very little to do.
If the answer is no, this announcement provides a timely opportunity to review your bidding strategy before Google’s behavioural changes take effect.
This update effectively asks a simple question:
Does your target still represent what you’re actually trying to achieve?
If the answer is yes, there may be very little to do.
If the answer is no, this announcement provides a timely opportunity to review your bidding strategy before Google’s behavioural changes take effect.
Should You Change Your Target CPA?
The answer depends entirely on why your current target exists.
One of the biggest mistakes advertisers can make is assuming every campaign should immediately lower its Target CPA simply because actual performance is currently better.
Sometimes that’s exactly the right decision. Sometimes it isn’t.
One of the biggest mistakes advertisers can make is assuming every campaign should immediately lower its Target CPA simply because actual performance is currently better.
Sometimes that’s exactly the right decision. Sometimes it isn’t.
Example: Insurance
Imagine an insurance broker with a Target CPA of £25.
For the past six months, the campaign has consistently generated new policy enquiries at around £15, while also showing as limited by budget.
If the business has reviewed its commercial performance and is happy acquiring customers at approximately £15, leaving the Target CPA at £25 may no longer accurately reflect its objective.
Following Google’s update, allowing that gap to remain could influence how Smart Bidding behaves.
In this situation, reviewing the target would be a sensible commercial decision.
Example: Mortgage Broker
Now consider a mortgage broker approaching the busiest remortgage season of the year.
Competition is expected to increase, auction prices are likely to rise and the business wants to maximise enquiry volume without unnecessarily restricting Smart Bidding.
In that scenario, maintaining a higher Target CPA may be entirely intentional.
The important point is that the target has been chosen deliberately rather than left unchanged simply because nobody has reviewed it.
That’s a very different conversation.
If the business has reviewed its commercial performance and is happy acquiring customers at approximately £32, leaving the Target CPA at £45 may no longer accurately reflect its objective.
Following Google’s update, allowing that gap to remain could influence how Smart Bidding behaves.
In this situation, reviewing the target would be a sensible commercial decision.
This Isn’t Just About CPA
Although much of the discussion has focused on Target CPA campaigns, the same principle applies to Target ROAS. If your campaigns have consistently exceeded your return targets while remaining budget limited, it’s worth asking the same question.
Does your current Target ROAS still represent the commercial objective of the business?
For example, an e-commerce retailer may deliberately reduce its ROAS target during Black Friday to maximise revenue and new customer acquisition.
Conversely, a business operating with tighter margins may decide its current ROAS target remains exactly where it should be.
Neither decision is automatically right or wrong.
The important thing is that the bidding strategy reflects the objectives of the business today rather than the objectives that existed twelve months ago.
Does your current Target ROAS still represent the commercial objective of the business?
For example, an e-commerce retailer may deliberately reduce its ROAS target during Black Friday to maximise revenue and new customer acquisition.
Conversely, a business operating with tighter margins may decide its current ROAS target remains exactly where it should be.
Neither decision is automatically right or wrong.
The important thing is that the bidding strategy reflects the objectives of the business today rather than the objectives that existed twelve months ago.
Our Perspective
Much of the online discussion has centred around whether this update is simply another way for Google to increase advertising spend.
There will undoubtedly be advertisers who experience higher acquisition costs if they continue using targets that no longer reflect their commercial objectives. However, it’s equally true that Smart Bidding can only optimise towards the signals and constraints advertisers provide.
If a campaign has delivered a CPA of £25 for months while the Target CPA remains set at £40, it’s reasonable to ask whether the target itself still reflects the outcome the business actually wants.
Viewed through that lens, Google’s August 2026 update feels less like a fundamental change in strategy and more like a reminder that Smart Bidding performs best when advertisers provide clear and accurate objectives.
There will undoubtedly be advertisers who experience higher acquisition costs if they continue using targets that no longer reflect their commercial objectives. However, it’s equally true that Smart Bidding can only optimise towards the signals and constraints advertisers provide.
If a campaign has delivered a CPA of £25 for months while the Target CPA remains set at £40, it’s reasonable to ask whether the target itself still reflects the outcome the business actually wants.
Viewed through that lens, Google’s August 2026 update feels less like a fundamental change in strategy and more like a reminder that Smart Bidding performs best when advertisers provide clear and accurate objectives.
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Common Mistakes to Avoid Before Google’s August 2026 Update
Google’s August 2026 update isn’t something to panic about, but it does present an opportunity to review how your campaigns are managed. In our experience, it’s often the underlying account strategy, rather than the update itself, that determines whether performance improves or declines.
Here are some of the most common mistakes to avoid.
Here are some of the most common mistakes to avoid.
Lowering Your Target CPA Too Aggressively
Having a campaign consistently outperform its Target CPA doesn’t automatically mean the target should be reduced to match yesterday’s performance.
Smart Bidding requires room to adapt as auction dynamics, competition and customer behaviour change. Reducing a Target CPA too aggressively can unnecessarily constrain volume and make it more difficult for campaigns to enter future auctions.
The better approach is to ask whether the current target still reflects the commercial objective of the business rather than simply chasing the lowest possible acquisition cost.
Smart Bidding requires room to adapt as auction dynamics, competition and customer behaviour change. Reducing a Target CPA too aggressively can unnecessarily constrain volume and make it more difficult for campaigns to enter future auctions.
The better approach is to ask whether the current target still reflects the commercial objective of the business rather than simply chasing the lowest possible acquisition cost.
Changing Multiple Variables at Once
One of the biggest mistakes advertisers make after any Google Ads update is changing too many settings simultaneously.
If you increase budgets, reduce Target CPA, launch new adverts and restructure campaigns at the same time, it becomes almost impossible to understand which change influenced performance.
Where possible, review one variable at a time and allow sufficient data to accumulate before making further adjustments.
If you increase budgets, reduce Target CPA, launch new adverts and restructure campaigns at the same time, it becomes almost impossible to understand which change influenced performance.
Where possible, review one variable at a time and allow sufficient data to accumulate before making further adjustments.
Looking Only at Platform Metrics
The August 2026 update has understandably generated a lot of discussion around Target CPA and Target ROAS, but those metrics should never be viewed in isolation.
A campaign generating cheaper enquiries is only an improvement if those enquiries continue to produce commercially valuable customers. Likewise, accepting a slightly higher acquisition cost may be entirely appropriate if customer quality, revenue or lifetime value also improve.
This is one of the reasons we encourage businesses to measure commercial outcomes alongside platform performance wherever possible.
A campaign generating cheaper enquiries is only an improvement if those enquiries continue to produce commercially valuable customers. Likewise, accepting a slightly higher acquisition cost may be entirely appropriate if customer quality, revenue or lifetime value also improve.
This is one of the reasons we encourage businesses to measure commercial outcomes alongside platform performance wherever possible.
A Few Practical Examples
The principles behind Google’s August 2026 update apply across almost every industry, but the commercial decisions behind campaign targets often look very different.
Property 🏠
Imagine an overseas property company generating enquiries at an average CPA of £25 while operating with a Target CPA of £40.
At first glance, reducing the target to £25 may appear logical.
However, overseas property enquiries often have long buying cycles. Prospective buyers may research locations, visit Spain several times and only proceed months later. If historical data shows acquisition costs naturally increase during peak travel periods, maintaining some flexibility within the Target CPA may be entirely justified.
The important question isn’t whether the target matches today’s average CPA.
It’s whether the target supports the wider commercial strategy of the business.
At first glance, reducing the target to £25 may appear logical.
However, overseas property enquiries often have long buying cycles. Prospective buyers may research locations, visit Spain several times and only proceed months later. If historical data shows acquisition costs naturally increase during peak travel periods, maintaining some flexibility within the Target CPA may be entirely justified.
The important question isn’t whether the target matches today’s average CPA.
It’s whether the target supports the wider commercial strategy of the business.
Automotive 🚘
A dealer group advertising new vehicle launches may deliberately allow acquisition costs to increase during manufacturer campaigns if stock availability, finance offers and customer demand are all expected to improve conversion rates.
Reviewing campaign targets after Google’s August 2026 update still makes sense, but reducing every Target CPA simply because recent performance has been strong could unintentionally restrict future growth.
Commercial context should always guide optimisation decisions.
Reviewing campaign targets after Google’s August 2026 update still makes sense, but reducing every Target CPA simply because recent performance has been strong could unintentionally restrict future growth.
Commercial context should always guide optimisation decisions.
Nonprofits 🎗️
Charities using the Google Ad Grant face a slightly different challenge.
Many campaigns optimise towards actions such as newsletter sign-ups, volunteer registrations or donation enquiries rather than direct revenue.
If Smart Bidding is working towards conversion actions that don’t accurately reflect the charity’s priorities, Google’s August 2026 update provides a good opportunity to review whether the chosen conversion goals and bidding targets still support the organisation’s objectives.
Sometimes improving measurement delivers greater long-term benefits than changing bidding targets alone.
Many campaigns optimise towards actions such as newsletter sign-ups, volunteer registrations or donation enquiries rather than direct revenue.
If Smart Bidding is working towards conversion actions that don’t accurately reflect the charity’s priorities, Google’s August 2026 update provides a good opportunity to review whether the chosen conversion goals and bidding targets still support the organisation’s objectives.
Sometimes improving measurement delivers greater long-term benefits than changing bidding targets alone.
Five Actions to Take Before 17th August
Rather than making immediate changes across every campaign, take a structured approach.
1. Identify campaigns using Target CPA or Target ROAS bidding.
2. Check whether those campaigns are regularly limited by budget.
3. Compare current targets with actual campaign performance over a meaningful period rather than a few days of data.
4. Decide whether your targets still reflect today’s commercial objectives rather than those set months ago.
5. Monitor performance after the August 2026 update before making further adjustments.
For many advertisers, the outcome of this review may simply be confirming that nothing needs to change. That’s perfectly valid. The objective isn’t to change campaign targets. The objective is to ensure they remain aligned with your business goals.
1. Identify campaigns using Target CPA or Target ROAS bidding.
2. Check whether those campaigns are regularly limited by budget.
3. Compare current targets with actual campaign performance over a meaningful period rather than a few days of data.
4. Decide whether your targets still reflect today’s commercial objectives rather than those set months ago.
5. Monitor performance after the August 2026 update before making further adjustments.
For many advertisers, the outcome of this review may simply be confirming that nothing needs to change. That’s perfectly valid. The objective isn’t to change campaign targets. The objective is to ensure they remain aligned with your business goals.
Frequently Asked Questions
Q: What does “Review Your Campaign Targets” mean in Google Ads?
A: The notification relates to Google’s August 2026 Smart Bidding update. It advises advertisers using Target CPA or Target ROAS bidding on budget-limited campaigns to review whether their current targets still reflect their business objectives.
Q: Will Google automatically change my Target CPA?
A: No. Google has confirmed that campaign targets will not be updated automatically. Advertisers remain responsible for reviewing and adjusting their own bidding targets where appropriate.
Q: Does this update affect Target ROAS campaigns?
A: Yes. The update applies to campaigns using bid targets, including both Target CPA and Target ROAS, when those campaigns are limited by budget.
Q: Should I lower my Target CPA?
A: Not necessarily.
If your current target genuinely reflects your commercial objectives, there may be no reason to change it. However, if your campaign has consistently delivered significantly better results for an extended period and your objectives have evolved, this is a good opportunity to review whether the target still makes sense.
Q: What happens if I ignore the notification?
A: Your campaigns will continue to run.
However, Google’s August 2026 update may influence how Smart Bidding behaves if your campaigns are limited by budget and your Target CPA or Target ROAS no longer reflects the outcomes you’re trying to achieve.
Final Thoughts
Google’s August 2026 update has certainly generated plenty of discussion, but it’s important to separate the announcement itself from the wider principles behind Smart Bidding.
At Precisionly, we don’t see this as a reason to panic or immediately change every Target CPA within an account. Instead, we see it as a timely reminder to review whether campaign settings still reflect the commercial objectives of the business.
Automated bidding doesn’t decide what success looks like. Advertisers do.
If your Target CPA or Target ROAS genuinely represents the outcome you’re trying to achieve, this update may have very little impact on your campaigns. If those targets have remained unchanged despite significant improvements in performance or changes within the business, now is the ideal time to review them.
Having spent almost a decade managing PPC within one of the UK’s largest insurance brokers, I’ve seen first-hand how the strongest accounts are rarely built on reacting to every platform update. They’re built on clear commercial objectives, meaningful measurement and consistent optimisation over time.
Whether you’re managing campaigns in insurance, financial services, property, automotive, the non-profit sector or any other industry, the same principle applies.
Smart Bidding can only optimise towards the objectives you give it.
If you’re unsure whether your campaign targets still reflect your business goals, or you’d like an independent review before Google’s August 2026 update takes effect, our PPC Audit and Consultancy services can help identify opportunities to improve performance while ensuring your campaigns remain aligned with your commercial objectives.
At Precisionly, we don’t see this as a reason to panic or immediately change every Target CPA within an account. Instead, we see it as a timely reminder to review whether campaign settings still reflect the commercial objectives of the business.
Automated bidding doesn’t decide what success looks like. Advertisers do.
If your Target CPA or Target ROAS genuinely represents the outcome you’re trying to achieve, this update may have very little impact on your campaigns. If those targets have remained unchanged despite significant improvements in performance or changes within the business, now is the ideal time to review them.
Having spent almost a decade managing PPC within one of the UK’s largest insurance brokers, I’ve seen first-hand how the strongest accounts are rarely built on reacting to every platform update. They’re built on clear commercial objectives, meaningful measurement and consistent optimisation over time.
Whether you’re managing campaigns in insurance, financial services, property, automotive, the non-profit sector or any other industry, the same principle applies.
Smart Bidding can only optimise towards the objectives you give it.
If you’re unsure whether your campaign targets still reflect your business goals, or you’d like an independent review before Google’s August 2026 update takes effect, our PPC Audit and Consultancy services can help identify opportunities to improve performance while ensuring your campaigns remain aligned with your commercial objectives.
