On 17 August 2026, Google is changing how target-based bid strategies work on budget-limited campaigns. It’s a small change on paper, but the campaigns most affected are the ones that have been beating their targets. For fashion and lifestyle brands, that often means your Shopping and Performance Max campaigns, the ones doing the heavy lifting on product sales, so it’s worth understanding before it lands. Here’s what’s happening, who it affects, and what we’d suggest you do about it.
What’s actually changing
The change affects target-based bid strategies, so Target CPA and Target ROAS, on campaigns that are limited by budget.
Currently, a budget-limited campaign can overachieve its target because there isn’t the budget to spend more. You set a Target CPA of £10, the campaign delivers at £5. The downside is that adjusting the budget can cause performance to fluctuate, because the system readjusts back towards the target you set.
From 17 August, budget-limited campaigns using Target CPA or Target ROAS will optimise more consistently towards the target you entered, including when you adjust budgets. The trade-off: campaigns that have been overachieving will start delivering closer to the target you set, rather than the better number they’ve been hitting.
For example, if your Target CPA is £10 but you’ve been achieving £5, after 17 August the campaign will deliver closer to £10. For multi-channel campaigns like Performance Max and Demand Gen, Google says you may also see shifts in how traffic is distributed across channels.
Who this affects
This applies to Search, Shopping, Performance Max, Demand Gen, Display, Travel and Hotel campaigns using a target-based bid strategy, across Google Ads, Search Ads 360, Display & Video 360, the Editor and the API. App campaigns, Video reach and Video view campaigns aren’t changing, they’ll carry on as they are. For most e-commerce fashion brands, Shopping and Performance Max on Target ROAS are where this will show up first, since that’s usually where the product-selling budget sits.
It only affects campaigns limited by budget. If your campaigns aren’t budget-constrained, nothing changes, because your targets already determine spend and efficiency. Google is sending in-account notifications to any advertiser who has had a budget-limited, target-based campaign in the last 12 months.
Why it matters for your brand
The campaigns most exposed are the budget-limited ones that have been beating target. Left alone, they could start spending the same money for fewer conversions, or a lower return, because they’re now aiming at the target you set rather than the better number they’d been achieving.
Google won’t adjust your targets or budgets automatically, so anything you want to change is on you to review. It’s also a fair prompt to check whether the targets in your campaigns still reflect your current business goals. The timing matters too: with Q4 and peak season on the horizon, this is exactly the window when fashion and lifestyle brands want their Shopping and Performance Max campaigns holding a reliable return before spend ramps up.
What we’d suggest you do
Google’s Bid Target Adjustment Tool has been available in Google Ads since 6 July. It shows historical performance and lets you apply changes in a click. Here are some options on what to do
- Keep your target as it is. If your current target reflects your goals, you don’t need to do anything. Be aware that a campaign that was overachieving will move towards the target you set, so make sure that target is one you’re happy to deliver at.
- Adjust your target to match recent performance. If a campaign has been achieving £5 against a £10 target and you want to hold that £5, lower the target to £5 in the tool. Performance stays close to where it’s been, and you can raise the budget later.
- Set a custom target. If the right number sits in between, say £7, enter that. The campaign will deliver closer to £7, and any additional spend should scale at roughly that level.
- Switch bid strategy. Moving to Maximise Conversions or Maximise Conversion Value will chase the most conversions or value for your budget. Note that your CPA or ROAS will fluctuate more as budgets change, because there’s no target holding it steady.
What to do next
After 17 August, your targets, not your budgets, do more of the work in deciding how efficiently your campaigns run. The job worth doing before then is an audit of any budget-limited campaigns where actual performance has been beating target, and a decision on whether those targets still reflect your goals.
If you’d rather not go through the account yourself, this is the sort of thing we handle for our fashion and lifestyle clients day to day. We’re happy to audit your Google Ads account and suggest changes ahead of the Google Ads update, just get in touch.
