Google Ads Alters Bidding for Budget-Limited E-commerce Campaigns

Image credit: Search Engine Journal

Google Ads will automatically modify target-based bidding strategies for budget-limited e-commerce campaigns globally starting August 17, 2026, to align performance more closely with set targets.

The update will affect campaigns currently constrained by budget, which previously often exceeded performance targets by achieving conversions at a lower cost or higher return on ad spend (ROAS).

Following the change, these campaigns will actively seek additional, potentially more expensive conversions to meet their stated Cost Per Acquisition (CPA) or ROAS targets, according to Google Ads.

This shift could lead to an increase in cost per conversion or a reduction in ROAS for advertisers who do not proactively adjust their campaign settings.

The automatic adjustment applies to target-based campaigns across Search, Shopping, Performance Max, Demand Gen, Travel, and Display networks.

However, the update specifically excludes App, Video reach, and Video view campaigns, Google stated.

Google launched a Bid Target Adjustment Tool on July 6, 2026, to assist advertisers in reviewing and updating their targets ahead of the implementation date.

Account notifications are also being distributed to inform advertisers about the impending changes, according to Ginny Marvin of Google.

Advertisers with budget-limited campaigns have three primary options to respond to the update.

They can choose to reset their targets to reflect actual historical performance, thereby maintaining their current efficiency.

Alternatively, advertisers can increase their campaign budgets to allow for scaling at the originally stated target.

The third option involves accepting the potential drift toward the stated target, which may result in higher costs or lower ROAS as campaigns pursue more expensive conversions.

The company indicated that the change aims to provide more consistent delivery toward advertiser-defined performance goals.

Source: Search Engine Journal