Google Ads Update: Smart Bidding Changes from 17 August 2026

A New Era for Automated BiddingIf you rely on Google Ads to attract customers or drive sales, there is an important update on the horizon. On 17 Augus...

A New Era for Automated Bidding

If you rely on Google Ads to attract customers or drive sales, there is an important update on the horizon. On 17 August 2026, Google will modify how its Smart Bidding strategies handle campaigns that use target CPA (cost per acquisition) or target ROAS (return on ad spend) when those campaigns are also budget-constrained. This may sound like just another platform tweak, but for many businesses across Catalonia and Spain, it could significantly alter how campaigns are optimised.

Until now, it was common for budget-limited campaigns to perform better than their set targets. For instance, a campaign with a target CPA of €30 might consistently achieve conversions at €20. This happened because, when budgets are tight, Google tends to be more selective, focusing spend on the most promising auction opportunities. However, after the update, Google will adhere more strictly to the targets you define, even when budget is a limiting factor. This means that objectives that have not been reviewed for months or even years will now have a much stronger influence on campaign performance.

Why Is Google Making This Change?

Google’s stated goal is to ensure that campaigns using target CPA or target ROAS respect the values set by advertisers, regardless of budget constraints. Previously, budget-limited campaigns often outperformed their targets not because Google was correcting poorly defined goals, but because the budget cap forced the system to be highly selective. After 17 August, that effect will be reduced. Your configured CPA or ROAS will become a stricter instruction rather than a loose reference.

This is not merely a technical adjustment; it is a strategic one. In the past, you could get away with having targets that were not perfectly aligned with your business reality and still see decent results. Now, setting accurate targets is more critical than ever. If your targets are unrealistic or outdated, the algorithm will follow them more closely, potentially leading to underperformance or wasted spend.

Which Campaigns Will Be Affected?

Not all campaigns will feel the impact equally. According to Google, the update primarily affects campaigns that meet two conditions: they use a Smart Bidding strategy based on target CPA or target ROAS, and they are budget-limited, meaning they could generate more conversions or revenue if given a higher budget. If your campaigns do not fit these criteria, the change may be less noticeable. However, it is still wise to review your settings, as even campaigns with ample budget could see subtle shifts in optimisation.

For those affected, the implications are clear: if your targets are well-calibrated and reflect what you genuinely expect from your campaigns, you may not see major negative effects. On the contrary, if your targets are too optimistic or too conservative, the algorithm will now follow them more faithfully, which could lead to missed opportunities or inflated costs.

Practical Steps to Prepare Your Campaigns

To avoid any negative impact on your profitability and results, we recommend taking the following steps before 17 August 2026:

Audit your current targets: Review every campaign that uses target CPA or target ROAS. Check whether the values still align with your business goals, margins, and conversion rates. If you have not updated them in a while, now is the time to do so.
Analyse historical performance: Look at your actual CPA and ROAS over the past few months. If your campaigns have consistently outperformed your targets, consider adjusting them to more realistic levels. Conversely, if you are consistently missing targets, you may need to set more achievable goals.
Check budget constraints: Identify campaigns that are frequently budget-limited. These are the ones most likely to be affected. If possible, increase budgets to give the algorithm more flexibility, or reassess whether your targets are too aggressive for the available budget.
Test and monitor: After making changes, closely monitor campaign performance. Smart Bidding algorithms need time to adapt, so avoid making frequent drastic adjustments. Instead, test one change at a time and observe the results over a few weeks.
Consider manual oversight: For campaigns where precision is crucial, you might want to experiment with manual bidding or a hybrid approach, especially if you have niche products or services that the algorithm may not fully understand.

What This Means for Your Business

This update underscores a broader trend in digital advertising: automation is becoming more sophisticated, but it also demands more accurate input from advertisers. Gone are the days when you could set a loose target and let the algorithm do the heavy lifting. Now, your targets must be a true reflection of your business objectives and market conditions.

For small and medium-sized enterprises in Spain, this is both a challenge and an opportunity. By taking the time to refine your Google Ads targets, you can improve the efficiency of your campaigns and ensure that every euro of your budget is used effectively. On the other hand, ignoring this change could lead to underperforming ads and wasted spend.

At ALMC.es, we help businesses in Lleida, Barcelona, Tarragona, and Girona navigate the complexities of digital marketing. If you are unsure how this update will affect your campaigns, or if you need assistance with your overall web presence, our team can provide expert guidance. From professional web development to SEO and performance optimisation, we are here to help you succeed online.

Remember, the key is to act now. Review your targets, adjust your budgets, and stay informed. With careful preparation, you can turn this change into an opportunity to refine your advertising strategy and achieve even better results.

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