Google is changing how Smart Bidding behaves for budget limited campaigns using Target CPA and Target ROAS from August 17, 2026. For performance teams, the important question is not whether Google is changing automation, but whether the targets you have given the algorithm still reflect your actual business goals.

Your target is becoming a stronger signal:

Some campaigns currently outperform their stated Target CPA or Target ROAS. After the update, Google says budget limited campaigns will optimise more closely toward those targets, which could change efficiency and conversion volume for campaigns that have been consistently outperforming them.

The risk is target misalignment:

If a campaign has been delivering a ₹500 CPA against a ₹1,000 Target CPA, the target may no longer be an insignificant setting in the background. The same applies to campaigns consistently delivering ROAS above their stated goal.

Audit before August 17:

Performance teams should review the last 28 days of actual CPA and ROAS against their current targets, particularly across campaigns marked Limited by budget. The objective isn't to change every target, but to make sure the targets reflect what the business actually wants.

Automation doesn't remove strategy:

Google is increasingly making bidding decisions automatically. That makes the marketer's role less about manual optimisation and more about setting the right targets, feeding the right signals, and knowing when to intervene.

What this means for marketers:

The next phase of performance marketing isn't about controlling every bid. It's about controlling what the algorithm is optimising toward.

The shift is clear:
Don't just optimise the campaign.
Optimise the target you're giving the algorithm.