Google Tightens the Screws on Smart Bidding Ahead of August Update

Google is making changes to its Smart Bidding feature on August 17, which may affect how budget-limited campaigns are optimized. According to Ginny Marvin, a Google Ads liaison, the update will ensure that Target CPA and Target ROAS are respected even in cases where a campaign hits its budget cap.

Currently, campaigns with target CPAs or ROAS can exceed their targets if they hit their daily budget limit. This can lead to unexpected performance jumps as the system adjusts to meet new spending levels. Google aims to prevent this by making Smart Bidding respect the set targets, regardless of the campaign's daily budget.

This change will primarily affect advertisers who consistently hit their campaign-level spending limits and have been outperforming their target CPAs or ROAS. Advertisers should review their campaigns ahead of time to identify potential issues and adjust their targets if necessary.