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Google Ads Smart Bidding is changing – From 17th August, Google is changing how Target CPA and Target ROAS campaigns behave when they’re limited by budget.

For example, if your campaign has a £50 Target CPA but is consistently achieving a £35 CPA, Google may start pushing performance closer to the £50 target rather than continuing to prioritise the most efficient auctions. Google’s argument is that this will make performance more predictable and scaling easier.

I can see the logic, but I’m not convinced we should automatically see this as a positive change. If a campaign is consistently delivering a £35 CPA against a £50 target, why would I necessarily want Google to spend more aggressively just because there’s room within the target?

For me, the key takeaway isn’t “lower your Target CPA before 17 August.” It’s to make sure your bidding target actually reflects what the business is willing to pay.

A Target CPA shouldn’t just be a number we inherited from a previous campaign setup. It should be connected to profitability, conversion quality, customer value and the actual business objectives.

So before the update, businesses should be reviewing:

• Which campaigns are budget-limited?
• Actual CPA/ROAS vs. the target.
• Whether the current target reflects the true commercial goal.
• Whether additional volume is actually more valuable than current efficiency.

I’m interested in seeing what happens to campaigns that have been consistently outperforming their targets once the change rolls out. Because hitting the target isn’t always the same as performing better.

Curious to see how this one plays out in real accounts.

Credit: Thanh Nguyen, Digital Media Manager