Major smart bidding update.
New York, NY — July 15 - 2026

Right now, if you run a Target CPA or Target ROAS strategy and your campaign is limited by budget, Google often quietly outperforms your target.
For example, you might tell Google you're willing to pay a $100 CPA, but because your budget is constrained, it only spends on the absolute best opportunities and ends up delivering a $60 CPA. Most advertisers have been benefiting from this without even realizing it.
Starting August 17, that changes. Google will start treating your target as the actual performance metric it should achieve, even if the campaign is budget limited. So, if your Target CPA is $100 but you've historically been getting a $60 CPA, Google is going to bid more aggressively to spend closer to that $100 target instead of outperforming it.
Why Google says it's doing this.
Google's explanation is that advertisers want more predictable scaling. Previously, lifting the budget on a budget-limited campaign could unexpectedly swing your CPA or ROAS because Smart Bidding was using that budget constraint to find cheaper conversions. Now, Google says you'll be able to increase budgets while keeping your performance a lot closer to your stated target.
What we really think.
It’s a smart update, but it's going to come at an initial cost (literally). Advertisers who set loose or arbitrary CPA/ROAS targets are likely going to lose efficiency. Google is going to stop handing you better results than you asked for and will start spending right up to the line you specified.
What you should do right now.
- Audit every campaign that is limited by budget and uses Target CPA or Target ROAS.
- Compare your actual CPA or ROAS against your set target.
- If your campaign is consistently beating its target and you want to keep it that way, lower your Target CPA (or raise your Target ROAS) to reflect reality.







