I’ve come across important news about Google Ads that could significantly impact how we manage our campaigns. Google is on the verge of altering its target-based bidding strategies, particularly for campaigns running on limited budgets.
Mark your calendar for August 17th when these changes will take full effect. But don’t worry, a Bid Target Adjustment Tool will be available as of July 6 to help us prepare and adjust our goals accordingly.
What’s going on? Google’s update aims to closely align target-based bidding strategies such as Target CPA with our set goals, even when budget constraints come into play.
They’re introducing a new tool that allows us to tweak our targets before the updates hit, which is crucial for maintaining our campaign performance.
Why should we care? If your campaigns are currently exceeding their target CPA or ROAS goals, they might not continue to do so post-update without adjustment. This update is meant to ensure budget-constrained campaigns stay true to their targets.
For example, if my campaign is achieving a $5 CPA against a $10 target, the performance might shift towards $10 unless I make some changes.
Thankfully, the new tool is there to help us proactively update our bidding goals before the changes roll out. If we don’t take advantage of this, we might end up paying more per conversion or see our performance realign with Google’s targets instead of our historical results.
Why is Google doing this? Google wants to reduce fluctuations and provide more predictable results when we tweak or adjust our budgets.
The tool is designed to help us synchronize our bidding targets more closely with actual business outcomes before the automatic implementation begins.
What should we do? It’s a good time for us to reevaluate campaigns using target-based strategies and verify if our current targets still align with desired results.
Notifications will be sent through Google Ads accounts before the update, and the Bid Target Adjustment Tool can highlight which campaigns might be affected.
Key takeaway: For those of us with campaigns that consistently outperform their targets, maintaining current performance might require tweaking target settings instead of leaving them unchanged.
Bottom line: Google is tightening the link between target-based goals and campaign performance. It’s now more essential than ever for us as advertisers to keep bidding targets updated consistent with our business objectives.
Inspired by this post on Search Engine Land.
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