Google loves to roll out changes that make them more money. They’re a business after all. At Empire9, we monitor what those changes are and evaluate how to best keep our client accounts humming.

This time, Smart Bidding is on the line. The short story? Google is going to take your Target CPA (Cost Per Acquisition) and Target ROAS (Return On Ad Spend) settings much more literally. If your targets are outdated, that isn’t just a minor setting error
… it could be an expensive problem waiting to happen.

So we have compiled a list of what you need to check in on in your Google Ads account prior to that date – including a run down on what is actually changing, why your best-performing campaigns might actually be the most exposed, and what you need to review before the deadline hits. Don’t panic, you’ve got the Empire in your corner.

What’s Actually Changing? (Translated Out of Google-Speak)
In typical fashion, Google’s announcement of this change was… tech speak.
Google states that budget-limited campaigns with bid targets will “provide more consistent performance when limited by budget, even after budget adjustments.”
Translation: Right now, when a campaign constrained by budget has extra room to spend, Smart Bidding tends to stick with what’s working. It aggressively chases the cheapest conversions or the highest return, often delivering results far better than the target you set. It was generally a win for everyone, and made Google look like the good guy when it delivered results. They’ve now made it clear that after August 17, these targets will not update automatically, so reviewing them is entirely on you (or us, if you’re a client).
Putting Google-speak into plain English has become one of our core competencies these days, it’s like they want you to think they’re way smarter than you. Smart-bidding however, becoming slightly less smart.

Google is leaning into the numbers you’ve given them, and here’s what that could look like:
• Target CPA Example: If your Target CPA is set to $50, but your account has quietly been delivering leads at $25, Google will give itself permission to spend up to that $50 mark per lead.
• Target ROAS Example: If your Target ROAS is set to 5x, but your campaign has been coasting along at 15x, Google will start bidding more aggressively, letting your actual ROAS drift down towards 5x.
An out-of-date target? Like an out-of-date wardrobe – not really working in your favour anymore…

Target CPA – cheap could get expensive.
We don’t mean cheap like your mate who gaps before it’s their turn to get a round (but is this lowkey what Google is doing?). We mean paying twice as much than necessary (like ordering Uber Eats from the restaurant across the road).
Let’s set the scene. Imagine you set a target of $50 per lead six months ago when launching a campaign. Over time, through audience refinement and conversion rate optimisation, the account found a groove and started delivering leads for $25. That gap between target ($50) and actual performance ($25) was quietly working in your favour.
You looked good. Google looked good. Everyone was happy with leads costing less and maintaining quality. But now (okay technically not now, from August 17th) – Google will pay that $50 figure per lead, because it can. Your target gave them the permission anyway, now they’re just going right up to the line. The gap is closing, cheap… becomes expensive.

Target ROAS – the opposite problem.
It’s easy to assume Target ROAS is safe from this change because “a higher ROAS is always a good thing”. This is why you need expert help sometimes; even writing this it starts to get confusing – logic would say yes, but Google is saying no.
Unfortunately, this one is just the mirror image of the CPA problem. If your target is set at 500% and your campaign is currently running at 1500%, that doesn’t mean Smart Bidding is smashing goals within its parameters.
It means the campaign is bidding conservatively and leaving high-value conversions on the table because it doesn’t need to spend more to clear a 500% bar. Once the algorithm spends more aggressively to hit that lower 500% target, your real ROAS will drift downward. It’s the exact same trade-off as Target CPA, just flipped on its head.

How can you avoid all this Smart Bidding heartbreak?
Every campaign running Target CPA or Target ROAS needs a quick health check. Health checks aren’t usually the answer to avoiding heartbreak; perhaps we should have said heartache… health checks can help with those.
Here is our 5-step action plan we will be implementing across our client accounts, you can use it too if you like:
1. Pull Historical Data: Review your actual CPA or ROAS over the last 30 to 90 days.
2. Compare Target vs. Reality: Compare those numbers against the target currently entered in your campaign settings.
3. Flag Wide Gaps: Look for wide discrepancies. A CPA target that is double what you actually pay, or a ROAS target that is a fraction of what you achieve, is dangerously out of date.
4. Tighten Your Targets: Adjust campaign targets to reflect current performance reality, not what made sense a year ago.
5. Monitor Budget Adjustments: Re-check targets whenever you adjust campaign budgets, as this is precisely when the new bidding behaviour takes effect.

This isn’t the be-all and end-all.
It sounds a bit daunting, and it is certainly annoying, but it’s always good to get into your account and take a look at the targets for a bit of a reality check.
After this change, the accounts that get ahead, will be the ones who took the time to take stock of what’s what. If you’re unsure where your Google Ads accounts stand, or want an expert eye to audit your bidding targets before 17 August, get in touch with the team at Empire9. We’re always up for a yarn and keen to ensure your ad spend works as hard as it possibly can.