Google Ads update · in effect since 17 August 2026
The Google Ads bidding change every Shopify seller should check
On 17 August 2026, Google changed how it bids for ad campaigns that are capped by budget and use a target (Target CPA or Target ROAS). If your Shopify ads had been quietly getting cheaper sales than your target, your cost per sale may now be climbing — up to double — unless you update your targets. Here’s what changed, and the four choices you have.
Quick answer
Since 17 August 2026, budget-limited Google Ads campaigns that use Target CPA or Target ROAS aim for the exact target you set, instead of often beating it. If a campaign was getting sales cheaper than its target, its cost per sale rises toward that target. To get back to your old results, lower your target to match what you were actually paying — Google’s Bid Target Adjustment Tool does it in a few clicks. It’s not too late: Google won’t change your targets for you.
What’s actually changing
A “target” is the price you tell Google you’re willing to pay for a result. Target CPA is the most you want to pay for one sale. Target ROAS is how much revenue you want back for every $1 of ad spend.
Think of your target like a speed limit you give a driver.
Before, when the road was narrow (a small, capped budget), the driver (Google) often drove slower and safer than your limit — you got sales cheaper than the price you set. Since 17 August 2026, the driver drives right at the limit you gave. So if you told Google “I’ll pay up to $10 a sale” but were only paying $5, you may now be paying closer to $10. The fix is simple: tell the driver the lower limit you actually want.
This only matters for campaigns marked “Limited by budget.” Campaigns that already spend their full budget aren’t affected the same way.
Why this matters for your Shopify store
Most Shopify stores grow with Performance Max and Shopping campaigns that push your products across Google. These are exactly the campaign types this change touches. If one of them is capped by budget and has been beating its target, here’s the real-world impact:
- Your cost per sale can go up. A campaign getting sales at $5 on a $10 target may drift toward $10 — meaning less profit on every order for the same ads.
- Performance Max traffic may shift. How your budget spreads across Search, Shopping, YouTube and Display can change, which can move your results around.
- Doing nothing is a choice too. If you ignore it, Google assumes the target you set is the one you want — and steers toward it.
The good news: after the change, scaling gets more predictable. Raising your budget should keep hitting your target instead of making results wobble — so you can grow spend with more confidence.
Your four options
Pick the one that matches your goal for each affected campaign:
| Option | What you do | Best when |
|---|---|---|
| 1. Keep your target the same | Only if the target you set is truly the most you want to pay per sale. Your results will drift toward that target (so cheaper sales may get more expensive). | Your current target is your real goal |
| 2. Lock in your current results | Lower your target to match what you are actually getting now (e.g. change a £10 target to £5). Use Google’s new Bid Target Adjustment Tool to do it fast. | You are happy with your current cost per sale |
| 3. Pick a number in between | Set a custom target between your old target and your current result (e.g. £7) — a balance of cost and volume. | You want a bit more volume but still a limit |
| 4. Switch to “get the most sales” | Move to Maximise Conversions or Maximise Conversion Value. Google spends the full budget for the most sales/revenue — but your cost per sale will move up and down. | You care about volume more than a fixed cost |
Key dates
6 July 2026
Google’s new Bid Target Adjustment Tool goes live in your Google Ads account. You can review past results and apply new targets in a few clicks.
July–August 2026
Google notified accounts that were “Limited by budget” in the previous 12 months and use Target CPA or Target ROAS.
17 August 2026
The bidding change took effect. Budget-limited campaigns now aim for the exact target you set — no longer beating it for free.
What to do now
Open Google Ads and filter for “Limited by budget.”
These are the only campaigns at risk.
Look at the ones using Target CPA or Target ROAS.
Check which are beating their target (paying less than the target, or earning more revenue than the target ROAS).
Decide your real goal for each.
Is the target you set truly the cost you want? Or do you want to keep your current, cheaper results?
Use the Bid Target Adjustment Tool.
Apply a new target in a few clicks — or set a custom one that fits your margins.
Re-check after the change and give budget room to grow.
Once stable, you can raise budget to capture more sales at your chosen target.
Rather have someone handle it?
Reviewing targets across Performance Max and Shopping campaigns — and choosing the right one for your margins — is exactly the kind of thing we do for Shopify stores. We can audit your affected campaigns and set targets that protect your profit while leaving room to scale — the fix works just as well after the date.
Frequently asked questions
What is the Google Ads bidding change in 2026?
On 17 August 2026, Google changed how it bids for campaigns that are “Limited by budget” and use a target-based bid strategy (Target CPA or Target ROAS). Before the change, a budget-limited campaign often did better than the target you set. Now it aims to hit the exact target you set instead — so campaigns that were quietly beating their target become less efficient unless you lower the target yourself.
How does this affect my Shopify store’s ads?
Most Shopify stores run Performance Max and Shopping campaigns for their products. If one of those is capped by budget and has been getting cheaper sales than your target (for example, a Target CPA of $10 while actually paying $5 per sale), your cost per sale can rise toward $10 — up to double — unless you update the target. That means less profit per order for the same ads. The change has been live since 17 August 2026, so if you have not reviewed your targets yet, do it now.
The change is already live — is it too late to act?
No. The fix works after the date too. Open Google Ads and find campaigns marked “Limited by budget” that use Target CPA or Target ROAS. Check whether their cost per sale has drifted up since 17 August 2026. Then decide: keep the target, lower it to match the results you used to get (the Bid Target Adjustment Tool makes this a few clicks), set a custom target, or switch to Maximise Conversions/Value. Google will not change your targets for you.
What is the Bid Target Adjustment Tool?
It is a new tool inside Google Ads, live from 6 July 2026. It shows your recent campaign performance and lets you apply a new, more accurate target in a few clicks — for example, dropping your Target CPA to match what you have actually been paying. Google sends a notification pointing you to it.
Which campaigns are affected?
Search, Shopping, Performance Max, Demand Gen and Travel campaigns that use Target CPA or Target ROAS and are limited by budget. App campaigns, Video reach and Video view campaigns are not affected. Display and Hotel campaigns already use the new behaviour.
Is there any good news in this change?
Yes. Now that the change is live, raising your budget is more predictable. Before, adding budget to an over-performing campaign often made results wobble. Now your campaign should keep hitting your target as you scale, so you can confidently increase budget to get more sales at the cost you set.
Do I have to do anything if I am happy with my targets?
If the target you set really is the cost you want to pay per sale, no change is needed — your campaigns will simply deliver closer to that target. The risk is only for campaigns that had been beating their target on a capped budget; if you have not reviewed those yet, do it now — the fix still works after the date.
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