With the 17 August 2026 change, budget-limited campaigns started chasing the set CPA or ROAS target instead of beating it. That makes the target a business decision: it should derive from margin and maximum cost per customer. Google launched on 6 July a tool, Bid Target Adjustment, that flags affected campaigns and suggests targets, without changing them automatically.
What the tool does and doesn't do
According to the sources consulted, Bid Target Adjustment, launched on 6 July 2026, identifies campaigns that may be affected by the change and suggests targets. Google says it doesn’t change targets automatically. It’s up to the advertiser to decide.
The platform’s suggestions rest on the account’s history and the system’s logic. They don’t know your margin, your maximum cost per customer or your capacity to respond. So use the tool as a starting point and validate with your business numbers.
CPA target from margin
The maximum CPA you can pay is the contribution margin per customer, before other fixed costs. If an average customer leaves 200 euros of margin, paying more than 200 euros per customer is a loss. A reasonable target stays below that value, with a safety margin for management costs, returns and others.
For lead businesses, use cost per qualified lead and close rate: if each qualified lead closes 25% of the time and the customer leaves 200 euros, the lead is worth 50 euros, and the CPA-per-lead target should stay below that.
Right target, wrong target
Target too demanding
- Volume falls to meet the target
- More impression share lost
- Efficient on paper, few sales
Target too loose
- Spends more per customer than it should
- Cost per result rises
- Profit falls and the surplus no longer hides it
ROAS target from margin
Break-even ROAS is 1 divided by margin as a decimal. With a 25% margin, it’s 4; with 10%, it’s 10. A ROAS target should be above break-even ROAS, with a safety margin, and be calculated per product line, not for the whole shop.
If the shop has products with very different margins, separate campaigns by margin and set distinct targets. A single target for a heterogeneous catalogue favours easy products and hurts high-margin ones that sell more slowly.
What happens if the target is too demanding
With the new logic, a budget-limited campaign chases the target. If the target is too demanding, the system may reduce volume to meet it: fewer auctions, fewer conversions, more impression share lost. The campaign looks “efficient” but doesn’t sell enough.
If the aim is growth, a target that’s too high brakes growth. If the aim is to protect margin, it may be right. The question is knowing your objective before choosing the number.
The target is the link between the business and the algorithm. It deserves a conversation.
What happens if the target is too loose
A loose target (for example a maximum CPA above what margin can bear) leads the system to spend more per customer than it should. Volume rises, cost per result rises and profit falls. Before the change, the surplus hid part of this problem; now, the system approaches the target, and a badly chosen target becomes visible.
It’s a good reason to review targets set a long time ago: they were calibrated under a different regime.
How to change a target without destabilising
Change in small steps (for example 10% to 15%), one campaign at a time, and wait one to two conversion cycles. Avoid changing the target and budget at the same time. Record the date and reason. If the campaign has little data, prefer more moderate targets to give the system room to learn.
Also avoid changing targets in the middle of Black Friday unless there’s a serious problem. Prepare them before and watch during.
Conversion value rules as a complement
Microsoft recommended conversion value rules to guide the algorithm, and Google has lifecycle goals with value multipliers for new customers. Assigning different values to different conversion types, according to margin or quality, helps the system look for what really matters.
If all enquiries are worth the same to the system, it optimises for volume. If some are worth more, it learns to seek them. It’s a way of passing business knowledge to the algorithm.
Questions for your manager
How did we set the CPA and ROAS targets? Did they start from margin? When did we last review them? Did we use Bid Target Adjustment? Which campaigns are budget-limited? And which conversion value rules do we have?
If the answer is “they’re the targets Google suggested”, ask for more. Targets are the link between the business and the algorithm, and deserve a conversation. If you wish, I can review your campaigns’ targets with you, from your margin.
Frequently asked questions
Does Bid Target Adjustment change my targets?
According to Google, no: it flags campaigns and suggests targets but doesn’t change them automatically.
What does the new “Target CPA” label mean?
From June 2026, “Maximize conversions with a Target CPA” appears as “Target CPA”. Google says behaviour is unchanged.
Can I use ROAS portfolios?
According to sources, Target ROAS can be campaign-level or portfolio, but portfolio isn’t available for Performance Max, hotel or travel.