Google Ad Targeting Shift Affects Budget-Constrained Campaigns Starting August 17
Google is shaking up its ad targeting system, introducing changes to how budget-constrained campaigns work. Starting August 17, campaigns using Target CPA or Target ROAS will behave differently.
Target CPA optimizes bids for maximum conversions at a specific average cost, treating every conversion equally valuable. Target ROAS, on the other hand, aims to maximize revenue value based on a target percentage return for each dollar spent.
According to an analysis by Measured, Google's bidding logic will move campaigns more consistently toward their stated targets. This could mean performance trends gradually converging toward original CPA or ROAS numbers unless advertisers adjust those targets.
Measures warns that marketers should revisit what their targets represent and not just leave them as is. Campaigns may start acting like direct instructions, changing reported efficiency and how additional volume is won.