No pretense. On August 17, 2026, Google Ads developers will implement changes to the algorithms for performance-based bidding strategies in order to achieve more stable performance metrics for each advertiser.
The official news is here, and we, as PPC specialists at Google Ads, will provide our expert interpretation.
The most important change
The focus of advertising campaigns is expected to shift from daily budget spending to achieving target metrics such as conversion rates and return on investment.
Campaigns should become more precise in their performance. The end result will be as consistent as possible with the set objectives.
If your actual campaign results are off, after adjustments they should be as consistent as possible with the set objectives.
The change will affect two types of bidding strategies:
- target cost per acquisition;
- target return on ad spend.
Some of the most important aspects about the changes in strategies
👉 If your campaigns were exceeding their performance targets, and you're satisfied with their economics and want to maintain them, adjust your bid strategy settings to match your actual performance to maintain your metrics.
👉 If your campaigns weren't meeting your performance targets, the system should optimize them to meet your goals.
👉 If your campaigns were hitting their targets, you don't need to change anything in your bid strategies.
What about the campaign budget?
👉 If you're satisfied with your performance, you can confidently scale it up. Google Ads will adhere to your performance goals as closely as possible. If it can't meet them, your budget will simply be underspent. This is an opportunity for advertisers who are wary of risking budget increases.
👉 If the campaign was running sporadically and you didn't make any budget changes but did adjust the strategy, the campaign will retrain, and you'll need to continue monitoring its performance.
Every Google Ads advertiser has received a notification about these changes. Each campaign will be prompted to make changes, but they won't be applied automatically; only the advertiser can make them.
We understand where this is all heading, why it's happening, and are prepared for any scenario. We wish everyone success and the best sales.
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