Google Smart Bidding Update Requires Target Adjustments by Aug. 17

Image credit: Search Engine Journal

Google will implement a significant update to its Smart Bidding system on August 17, altering how budget-limited Target Cost Per Acquisition (CPA) and Target Return On Ad Spend (ROAS) campaigns optimize globally.

The change requires advertisers to review and potentially adjust their bidding targets to prevent decreased efficiency or performance shifts in affected campaigns, Google said.

Starting August 17, budget-constrained campaigns utilizing Target CPA or Target ROAS will more closely adhere to their specified bidding targets.

Google introduced a Bid Target Adjustment Tool on July 6 to assist advertisers in identifying and reviewing campaigns that may be impacted by the upcoming alteration.

The update applies to budget-limited campaigns across various Google advertising platforms, including Search, Shopping, Performance Max, Demand Gen, Travel, Search Ads 360, and Display & Video 360.

Campaigns not limited by budget, as well as App, Video Reach, and Video View campaigns, are excluded from this specific change.

Google stated that the modification aims to resolve inconsistencies observed when daily budgets were increased on target-based bidding campaigns.

Industry analyst Joey Bidner suggested that advertisers who previously set intentionally low Target ROAS or high Target CPA targets to manage efficient performance within fixed budgets might experience reduced efficiency if targets are not updated.

Nils Rooijmans, an expert, advised advertisers to carefully evaluate their current target settings in light of the new optimization behavior.

Kirk Williams, a prominent voice in the advertising community, emphasized the need for proactive adjustments to avoid unexpected shifts in campaign outcomes.

Advertising consultant Jyll Saskin Gales recommended that advertisers utilize the provided adjustment tool to understand the implications for their specific accounts.

Advertisers are urged to review their campaign settings and make any necessary adjustments to their Target CPA and Target ROAS goals before the August 17 deadline to ensure continued optimal performance.

Source: Search Engine Journal