Businesses running Google Ads campaigns are being urged to review their advertising accounts ahead of an important update that could affect the cost and performance of their online advertising.
From Monday 17th August, Google will begin applying Target CPA (Cost Per Acquisition) and Target ROAS (Return on Ad Spend) bidding targets more strictly within certain budget limited campaigns. While the update is designed to make automated bidding more closely reflect advertisers’ chosen targets, marketing experts warn that businesses with outdated settings could see a negative impact on campaign performance.
According to full-service marketing agency PMW Communications, many Google Ads accounts contain bidding targets that were set months or even years ago and have never been reviewed, despite changes in business priorities, customer value and campaign performance.
The agency says businesses should now check whether the targets in their Google Ads accounts still reflect current performance, rather than assuming automated bidding will continue delivering the same results.
Kate Clifford, Director of Search and Web at PMW, commented:
“Google’s automated bidding has become increasingly sophisticated over recent years, but it’s still only as good as the information it’s given. If your Target CPA or Target ROAS no longer reflect what your business actually needs or what your campaigns are achieving, this update could make those outdated figures far more influential.
“This doesn’t mean businesses should panic or start changing every bidding target overnight. Automated bidding strategies respond best to gradual, informed adjustments based on real performance data. The important thing is understanding what your account is currently telling Google to optimise towards.”
The update could also have wider implications for advertisers competing in the same markets. If large numbers of businesses continue using outdated bidding targets, changes in Google’s optimisation may influence competition for clicks and potentially affect advertising costs across some sectors.
PMW is advising businesses to:
- Review campaigns using Target CPA or Target ROAS bidding.
- Compare existing targets with recent campaign performance.
- Check whether customer values, margins and business priorities have changed since bidding targets were originally set.
- Avoid making large or immediate changes without understanding overall campaign performance.
- Continue monitoring campaigns after the update takes effect.
Kate added:
“Many businesses understandably adopt a ‘set and forget’ approach once campaigns are performing well. However, digital advertising doesn’t stand still. Regular account reviews help ensure your advertising budget continues working as efficiently as possible, especially when platforms introduce significant changes such as this.”
Businesses with Google Ads accounts managed internally, or those that have not reviewed campaign settings for some time, are being encouraged to assess their bidding strategies before the update is introduced on Monday 17th August.
Businesses that would like further assistance can contact PMW for a free Google Ads audit by visiting its website – https://pmwcom.co.uk/contact/.