Google Ads Target CPA and ROAS: what changed on 17 August 2026
Since 17 August 2026, Google Ads campaigns on Target CPA or Target ROAS with a "Limited by budget" status deliver closer to the target you set instead of beating it. If CPA has risen since August with no changes on your side, this may be why.
What exactly changed?
Before, a "Limited by budget" campaign on a target-based strategy often overachieved its target: CPA came in lower and ROAS higher than set. But as soon as the budget was raised, performance started to fluctuate. Since 17.08.2026 Google optimizes these campaigns more consistently toward the target itself, including after budget changes.
Google's example: the Target CPA is 10 USD, but recent actual CPA is 5 USD. After the update the campaign delivers closer to 10 USD.
Which campaigns are affected?
| Campaign type | Bidding behavior |
|---|---|
| Search, Shopping, Performance Max, Demand Gen, Travel | new since 17.08.2026 |
| Display, Hotel | already worked this way |
| App campaigns, Video reach, Video view (VVC) | previous behavior stays |
The update applies in Google Ads, Search Ads 360, Display & Video 360, Google Ads Editor and the Google Ads API. In Performance Max and Demand Gen, traffic may also shift across channels.
What does Google recommend?
Google does not change your targets or budgets automatically. Your options:
- Keep the target if it reflects your business goals. Performance moves toward it, and you can raise the budget without sharp swings.
- Align the target with actual performance (5 USD in the example) to keep your current efficiency.
- Set your own number (for example 7 USD) based on your margin.
- Switch to Maximize conversions or Maximize conversion value. Volume holds, but CPA or ROAS will move with the budget.
- Increase the budget: keep the daily budget comfortably above average daily spend, check forecasts on the Recommendations page and evaluate after 1–2 conversion cycles.
How to check your campaigns now
The update has now been live for almost three months. If a "Limited by budget" campaign has seen CPA rise or ROAS fall since late August while nobody touched its settings, compare its actual result before 17.08 with the target. If it was well ahead of the target, the update is the most likely cause. Account for seasonality and conversion-tracking changes before acting. Metriverra shows Google Ads spend, CPA and ROAS by day, so comparing before and after 17.08 takes a minute.
In short
- Since 17.08.2026, tCPA/tROAS campaigns limited by budget deliver closer to the target, not better than it.
- Applies to Search, Shopping, PMax, Demand Gen and Travel; app and video campaigns are unchanged.
- Google changes nothing automatically — reviewing targets is on you.
- To keep current efficiency, move the target to actual performance.
- After budget changes, judge results after 1–2 conversion cycles.
Source: Google Ads Help — Changes to target based bid strategies
