Google Ads Set to Change How Campaigns Run

by · WWD
Google’s bidding logic will move the campaign more consistently toward the stated target.Courtesy image.

Google is now changing how budget-constrained campaigns behave when they’re using Target CPA or Target ROAS, effective Aug. 17.

In campaigns, Target CPA (Cost Per Acquisition) is designed to optimize bids so it gets as many conversions as possible at a specific average cost. It treats every conversion as equally valuable. Target ROAS (Return on Ad Spend) involves optimizing bids to maximize revenue value that is based on a target percentage return for each dollar spent.

The practical shift is that when a campaign significantly outperforms its target, companies may no longer be able to leave the campaign settings alone and continue enjoying that extra performance as a bonus, according to an analysis by Measured, an AI-powered marketing effectiveness platform.

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Measured noted that Google’s bidding logic will move the campaign more consistently toward the stated target, which could mean performance trends that gradually converge toward the original CPA or ROAS numbers unless advertisers adjust those targets.

The author of the report said for marketers, the update is less about tweaking a bid setting and more about revisiting what the target is supposed to represent. If a current target has been functioning as a guardrail—or simply a number that happened to work operationally—it may start acting like a direct instruction, changing not only reported efficiency but also how and where additional volume is won.

That makes incrementality measurement central: more conversions or platform-attributed ROAS may not translate into more economic growth and shifts in placements or audience distribution could keep campaign-level metrics steady while altering customer quality and marginal returns.

Measured’s guidance emphasizes reviewing affected, budget-limited campaigns before Aug. 17, documenting current spend, targets, conversion volume and inventory mix, then adjusting targets with intent so teams can evaluate incremental outcomes as Google’s new targeting behavior settles over the following conversion cycles.

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