Google Is Ending Target Overperformance – What to Fix Before August 17

Google Is Ending Target Overperformance – What to Fix Before August 17

By Brooke Osmundson
Publication Date: 2026-08-12 12:00:00

Google’s upcoming Smart Bidding change has sparked plenty of discussion across the PPC industry, but its impact may be more limited than some of the online reaction suggests.

Beginning August 17, budget-limited campaigns using Target CPA or Target ROAS will optimize more closely toward their stated bidding target. Google also introduced a Bid Target Adjustment Tool on July 6, giving advertisers time to review affected campaigns before the change takes effect.

The update applies only to budget-limited campaigns using target-based bidding strategies across Search, Shopping, Performance Max, Demand Gen, Travel, Search Ads 360, and Demand Gen campaigns in Display & Video 360.

Campaigns that aren’t limited by budget won’t behave differently, and App, Video Reach, and Video View campaigns are excluded. Hotel and Display campaigns already optimize this way.

The discussion around the update has largely focused on advertisers who have benefited from campaigns consistently…