Google Ads update · effective 17 August 2026
The Google Ads bidding change every Shopify seller should check
On 17 August 2026, Google is changing how it bids for ad campaigns that are capped by budget and use a target (Target CPA or Target ROAS). If your Shopify ads have been quietly getting cheaper sales than your target, your cost per sale could climb — up to double — unless you act. Here’s what’s changing, and the four choices you have.
Quick answer
From 17 August 2026, budget-limited Google Ads campaigns that use Target CPA or Target ROAS will aim for the exact target you set, instead of often beating it. If a campaign has been getting sales cheaper than its target, its cost per sale can rise toward that target. To keep your current results, lower your target to match what you’re actually paying — using Google’s new Bid Target Adjustment Tool (live 6 July 2026). 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.
Right now, when the road is narrow (a small, capped budget), the driver (Google) often drives slower and safer than your limit — you get sales cheaper than the price you set. After 17 August 2026, the driver will drive 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 start 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.
Around now
Google sends a notification to any account that was “Limited by budget” in the last 12 months and uses Target CPA or Target ROAS.
17 August 2026
The bidding change takes effect. Budget-limited campaigns start aiming for the exact target you set — no longer beating it for free.
What to do before 17 August 2026
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 (from 6 July 2026).
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 before 17 August and set targets that protect your profit while leaving room to scale.
Frequently asked questions
What is the Google Ads bidding change in 2026?
From 17 August 2026, Google is changing how it bids for campaigns that are “Limited by budget” and use a target-based bid strategy (Target CPA or Target ROAS). Today, a budget-limited campaign often does better than the target you set. After the change, it will aim to hit the exact target you set instead — so campaigns that were quietly beating their target may 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 could rise toward $10 after 17 August 2026 — up to double — unless you act. That means less profit per order for the same ads.
What should I do before 17 August 2026?
Open Google Ads and find campaigns marked “Limited by budget” that use Target CPA or Target ROAS. Check the ones that are beating their target. Then decide: keep the target, lower it to match your current results (using the new Bid Target Adjustment Tool from 6 July 2026), 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. After 17 August 2026, raising your budget becomes 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 have been beating their target on a capped budget; those are the ones to review before 17 August 2026.
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Don’t let your ad costs quietly climb
Send us your store — we'll review your Google Ads targets before 17 August and set them to protect your profit.