Why did my Google Ads costs go up after the August 2026 Target CPA change?

TofuAnswer by the Tofu team · checked

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Most likely because your campaign stopped beating its target. Starting August 17, 2026 (fully live August 27), Google changed how Target CPA and Target ROAS bid in campaigns marked "Limited by budget." Some of these campaigns used to get a CPA well under their target. Now they bid toward the target you set, so your cost per conversion can rise toward it while total spend stays within budget. To keep your old results, lower the target to your recent actual CPA. How much costs moved varies by account, and Google's help pages give no figures.

As of October 2026.

What exactly did Google change?

Campaigns that are limited by budget and use a target now bid toward that target, even when the budget is tight. Before, Google says, some of these campaigns were "overperforming on bidding targets" and saw swings in results when you changed the budget. Google's own example: a campaign with a $10 Target CPA that was getting a $5 CPA "now delivers more closely to a $10 USD actual CPA." Google says this is a bidding change only, and the auction itself works the same way.

Why did my costs go up if my budget didn't change?

Because the same budget now buys conversions closer to your target price. If your target is $10 and you were paying $5, the campaign now aims for $10, so each conversion costs more and the budget buys fewer of them. Google says the change "won't directly result in increased spend," and daily and monthly budget limits still apply.

Clicks may cost more too. Mike Ryan of Smarter Ecommerce posted charts on X showing CPCs rising for budget-limited campaigns, and a pool of cheap clicks now going to campaigns that aren't limited, as reported by Search Engine Roundtable on September 15, 2026. That is one company's data with no sample size given, and Google's help pages give no figures, so your account may see a bigger effect, a smaller one, or none. In Performance Max and Demand Gen, Google says spend can also shift between channels.

Which campaigns are affected?

Only campaigns that use a target and are limited by budget.

SetupAffected by the change?
Target CPA or Target ROAS, campaign "Limited by budget"Yes
Target CPC in Demand Gen, limited by budgetYes
Portfolio strategies and shared budgets that are budget-limitedYes; change targets at the portfolio or shared budget level
Target CPA or Target ROAS, not limited by budgetNo
Maximize conversions or Maximize conversion value with no targetNot on Google's list of affected strategies
Manual CPC or Target Impression ShareNo
Campaign total budgetsNo

It covers Search, Shopping, Performance Max, Demand Gen and Travel campaigns in Google Ads and Search Ads 360, plus Demand Gen in Display & Video 360. Display and Hotel campaigns already bid this way. App, Video reach and Video view campaigns keep the old behavior. It applies to every conversion type, including offline conversions you import.

When did it roll out?

It started August 17, 2026, and Google says the global rollout was complete on August 27, 2026. Google sent a mandatory service announcement to advertisers who might be affected, and its Target CPA help page points to a Bid Target Adjustment Tool, available from July 6, 2026, for reviewing targets. Google says forecasts in tools like Performance Planner had "minor inaccuracies" during the rollout and have been stable since it finished.

Should I lower my Target CPA?

Lower it if you want the CPA you had before. Google lists these options:

OptionWhat happens (Google's $10 target, $5 actual example)
Keep the targetResults move toward a $10 CPA; a bigger budget now buys more conversions near $10
Set the target to your recent CPALower it to $5 and performance "will stay close to $5"
Set a custom targetFor example $7, and the campaign moves toward $7
Switch to Maximize conversionsNo target; the campaign spends the full budget and CPA moves as you change budget

For a starting number, Google's recommended Target CPA is your average CPA over the last 30 days, adjusted for conversion delays. In its recommendations for this update, Google doesn't calculate a target for campaigns with fewer than 7 conversions, so set those by hand. Google says a target stricter than your current results will likely affect daily spend; the bid simulator shows the trade-off. Google also says large and small target changes both work, since Smart Bidding reacts in real time. Wait 1 to 2 conversion cycles before you judge it, which takes longer if leads take weeks to convert.

How do I find the campaigns this hit?

Look for "Limited by budget" in the Status column of your campaigns table, on campaigns that use Target CPA or Target ROAS. Then compare actual CPA with the target. The bid strategy report's scorecard shows "Average Target CPA" next to "Actual CPA," and its simulators estimate what a new target or budget would do. Also check the Recommendations page. Google only makes target recommendations for campaigns that recent data shows are likely affected, while its announcement looked further back, so you may have gotten the notice with no recommendation.

Should I switch to Maximize conversions instead?

Only if your budget is fixed and you can live with CPA swings. Google says Maximize conversions and Maximize conversion value can help keep your conversion volume, but because they spend the full budget with no target, your CPA or ROAS "will fluctuate" as you change the budget. Google also warns that if a campaign spends much less than its budget today, Maximize conversions could raise spend a lot.

Should I raise my budget?

Only if more conversions at your target price are worth it to you. Google presents the change as a way to scale: extra budget now buys conversions close to your target, instead of results swinging. It suggests a daily budget "comfortably higher than your average daily spend" and waiting 1 to 2 conversion cycles after an increase. If you can't raise it, Google suggests keeping as much budget buffer as you can, using targets to manage spend, or grouping campaigns under a portfolio strategy or shared budget.

Is "Target CPA" a new bid strategy?

No, it's a new label. Starting in June 2026, Google began renaming "Maximize conversions with a Target CPA" to "Target CPA" and "Maximize conversion value with a Target ROAS" to "Target ROAS." Google says the bidding works "exactly the same" and you don't need to do anything. You may see both names for a while, and Google says the Google Ads API, Google Ads Editor and the mobile app won't show the new names right away (in the API reference, Maximize conversions still has an optional target_cpa_micros field). The rename and the August bidding change are separate updates.

Should I add data exclusions or bid limits because of this?

No. Google says applying data exclusions or new bid limits "solely in response to this update isn't recommended, as it can cause performance fluctuations." Change targets and budgets based on what your business needs.

Where Tofu fits

Tofu Ads Agent (our product) sets the bidding strategy and budgets when it builds Google Search campaigns, and its weekly bid and budget recommendations stay proposals until you approve them. It doesn't run Google's Bid Target Adjustment Tool or change your targets on its own, and its bid optimization agent works on LinkedIn, not Google. You adjust Target CPA in Google Ads.

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