Google Ads update August 2026: Is your business ready?

Google Ads is making an important change to the way some of its automated bidding strategies work, and it could affect how consistently your campaigns meet the cost or return targets you’ve set.

From 17th August 2026, Google will begin treating the targets set within certain budget-limited campaigns more strictly. In simple terms, the figures sitting in your Google Ads account are about to play a much bigger role in how your campaigns are managed.

What does this mean for your business

Many Google Ads campaigns use Target CPA (Cost Per Acquisition) or Target ROAS (Return on Ad Spend) bidding. Target CPA tells Google how much you’re willing to pay for an enquiry, sale or other conversion. Target ROAS tells Google what return you want from your advertising spend.

Imagine your Target CPA is set at £20, but your campaign is currently generating enquiries for £8. Previously, Google may have continued delivering enquiries at around £8. After the update, it may optimise more closely towards the £20 target you’ve entered.

That doesn’t mean every £8 enquiry will suddenly cost £20. However, if your target no longer reflects how your campaigns are performing, it could make it harder for your campaigns to consistently achieve the most efficient results without regular review.

Why this could be a problem

If your Google Ads account has been set up and largely left to run itself, you may not even know what targets are currently in place. They may have been added months or even years ago and could no longer reflect:

  • what a genuine customer is worth to your business
  • how efficiently your campaigns currently perform
  • changes to your services, margins or priorities
  • the quality of the enquiries you receive


There’s also a wider question around competition.

If other advertisers have targets that no longer reflect their current performance, and Google’s updated system starts optimising more closely towards those targets, it’s possible this could have an impact on click costs across some markets.

We won’t know the full effect until the change goes live, but it does make regular Google Ads management and ongoing account reviews more important than ever.

What you should do now

Review any campaigns using Target CPA or Target ROAS and compare the targets in your account with your recent performance. However, this isn’t simply a case of lowering every target.

Changing automated bidding settings too quickly, or without understanding how your campaigns are performing overall, can also reduce performance. Targets need to be realistic, adjusted carefully and monitored as Google’s systems adapt to the changes.

That’s where we can help

Our paid media specialists are already screening the Google Ads accounts we manage to identify which campaigns may be affected by this update. Where bidding targets are in place, we’ll review whether they still reflect current performance and continue monitoring campaigns before and after the change. We’ll be adjusting where needed to help protect results and make the most of advertising budgets.

If you’re unsure which bidding strategy your business uses, whether your targets are still appropriate, or how this Google Ads update could affect your campaigns, speak to our team. We’ll review your account, explain everything in plain English and help ensure your Google Ads activity is ready for 17th August.

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Kate Clifford

Director of Search & Web

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