Google Ads Performance Dropped After August 17? Here's How to Fix Your Campaigns

If your Google Ads campaigns are generating fewer conversions, spending differently, or struggling to maintain their previous ROAS, the August 17, 2026, bidding update is worth reviewing.

Google changed how target-based bidding works for campaigns marked “Limited by budget.” The goal is to make campaign performance more consistent with the targets advertisers set, even when budgets change. The global rollout was completed on August 27, 2026. For advertisers, this means a campaign that previously performed better than its Target CPA or Target ROAS may now move closer to its configured target.

But don't panic and change every campaign at once. First, understand the update, identify affected campaigns, and choose the right adjustment.

Why Are PPC Advertisers Concerned About Google's Bidding Change?

Before the update, some budget-constrained campaigns using target-based bidding could outperform their configured targets.

For example, a campaign might have a Target CPA of ₹1,000 but regularly generate conversions at ₹600. After the change, its performance may move closer to the configured ₹1,000 target.

Similarly, a Target ROAS campaign that historically achieved better returns than its target may start delivering closer to the target you specified.

The key point: Google is not automatically changing your target or increasing your budget. The bidding system is changing how it optimises toward those settings.

Which Google Ads Campaigns Are Affected?

According to Google's guidance, the update applies to budget-constrained campaigns using eligible target-based bidding strategies.

Start by checking campaigns that use Target CPA or Target ROAS and have a “Limited by budget” status. For Demand Gen, also review Target CPC campaigns.

Why the Gap Between Your Bid Target and Actual Performance Doesn't Tell You What to Do

Suppose your campaign has a Target ROAS of 400%, but it regularly delivers 700%.

Should you change the target?

Not automatically.

The difference between your target and actual performance does not tell you whether your target is wrong. You need to consider profitability, available budget, conversion volume, and your growth objectives.

Ask yourself:

• Is the campaign generating profitable conversions?

• Do you want to maintain efficiency or increase volume?

• Can your business afford a higher acquisition cost?

• Is conversion tracking accurate?

• Does the current target reflect your actual business goals?

If the campaign is already meeting your profitability requirements, you may not need to change anything. If you want to preserve its historical efficiency, a target adjustment may be appropriate.

How to Choose the Right Target Adjustment?

Review recent campaign performance before changing your settings. Use the Bid Target Adjustment Tool available in Google Ads where applicable, or enter a custom target based on your business requirements.

Your options include:

• Keep the existing target: Choose this when the target still reflects your business goals.

• Adjust the target: Update it to align more closely with recent performance if maintaining that efficiency is important.

• Make the performance target stricter: Lower your Target CPA or increase your Target ROAS when you need stronger efficiency and your business can support the resulting reduction in volume.

• Switch bidding strategies: Test Maximize Conversions or Maximize Conversion Value if your priority is to generate as many conversions or as much conversion value as possible within a budget.

• Increase the budget: Consider this when the campaign has profitable growth opportunities and budget limitations are restricting volume.

Remember that Maximize Conversions and Maximize Conversion Value without a target do not guarantee a particular CPA or ROAS. Actual efficiency may fluctuate.

How to Adjust Your Google Ads?

1. Test Alternative Strategies

If a campaign is no longer meeting your expectations, consider testing a different bidding approach.

For lead generation, Maximize Conversions may be worth testing. For eCommerce, Maximize Conversion Value can be useful when conversion values are tracked correctly.

You can also test a new campaign with a different bidding strategy, keeping the original campaign available for comparison where appropriate.

Avoid making multiple major changes simultaneously, as this can make results harder to interpret.

2. Review Your Targets

Compare your configured target with recent actual performance and your business requirements.

For example, if your current Target CPA is ₹1,000 but your business needs to acquire customers at ₹700, consider whether a lower target is realistic given your conversion history.

For Target ROAS, evaluate revenue quality and margins before raising the target.

3. Adjust Budgets

Check whether campaigns are genuinely limited by budget and whether additional spending could generate profitable volume.

If a campaign has room to scale, increase its budget carefully and monitor the results. Do not raise budgets simply because impressions or conversions have declined.

How to Audit Budget-Constrained Campaigns Without Checking Them One at a Time?

If you manage multiple accounts, reviewing campaigns individually can take hours. Use a structured audit instead.

1. Filter campaigns by “Limited by budget.”

2. Identify eligible bidding strategies.

3. Compare configured targets with recent actual CPA or ROAS.

4. Review conversion tracking and conversion delays.

5. Group campaigns by action: keep, adjust target, test a strategy, or increase budget.

6. Prioritise campaigns with meaningful spend and business impact.

You can organise your findings in a simple spreadsheet with campaign name, bidding strategy, budget status, current target, actual performance, proposed action, and review date.

This makes the audit easier to manage and helps prevent unnecessary changes.

Wait One to Two Conversion Cycles Before Judging the Change

After changing a target, budget, or bidding strategy, avoid judging the outcome too quickly.

Google recommends waiting one to two conversion cycles before evaluating performance after relevant adjustments. This is particularly important for campaigns with longer conversion delays.

During this period, monitor spend, conversion volume, CPA, ROAS, and conversion value. Compare equivalent periods and account for reporting delays before drawing conclusions.

Final Thoughts

The August 17 update does not mean every Google Ads campaign will perform worse. Its impact depends on the campaign's bidding strategy, budget status, historical performance, and configured target.

A structured audit is more useful than making sudden changes.

If you need help reviewing campaign performance, a Best Performance Marketing Agency in Dehradun should be able to explain the bidding strategy, identify potential issues, and recommend changes based on business goals. Likewise, a Best Digital Marketing Company in India should connect campaign optimisation with measurable outcomes rather than focus only on clicks and impressions.

The goal is simple: understand what changed, choose the right adjustment, and give the campaign enough time to show whether that decision worked.

Frequently Asked Questions

Q1. Did Google Ads change its bidding system on August 17, 2026?

Yes. Google updated target-based bidding behaviour for eligible budget-constrained campaigns, with the global rollout completed on August 27, 2026. 

Q2. Should I increase my Google Ads budget after the update?

Only if the campaign has profitable growth potential and the budget is restricting volume. Increasing spend alone does not guarantee better results.

Q3. Should I switch from Target ROAS to Maximize Conversion Value?

Consider testing it if your priority is maximising conversion value within a budget rather than maintaining a specific ROAS target. Monitor actual returns carefully.

Q4. How long should I wait before judging performance?

Allow one to two conversion cycles after a relevant change, taking conversion delays into account.