Google Ads Target CPA and ROAS Update: Early Results, Reddit Feedback and Affect Analysis

What Changed in Target CPA and Target ROAS

In August 2026, Google completed a major update to its Smart Bidding algorithms. The changes affected budget-limited campaigns using Target CPA and Target ROAS bidding strategies.

Two months later, the first results can be assessed. Discussions among specialists on Reddit show a predominantly cautious and critical reaction, although some advertisers report improvements or no noticeable changes. At the same time, Affect's analysis shows that 89% of the campaigns studied improved or maintained their performance, while 32% moved closer to their established targets.

Target CPA (tCPA) is the target cost per conversion that the algorithm tries to maintain on average. For example, with a tCPA of $50, Google aims to generate conversions at an average cost of approximately $50.

Target ROAS (tROAS) is the target return on ad spend. A value of 500% means that an advertiser expects to receive $5 in conversion value for every dollar spent.

Before the update, campaigns with the Limited by Budget status often significantly exceeded their established targets.

For example, with a Target CPA of $50, the actual CPA could be $25. Similarly, a campaign with a Target ROAS of 300% could consistently generate a ROAS of 600%.

Budget limitations sometimes forced the algorithm to concentrate on the most efficient auctions.

From August 17 to August 27, 2026, Google introduced new logic: budget-limited campaigns are now optimized closer to their specified targets, including after budget changes.

This means that previously exceeding targets should no longer be considered a sustainable result. Google explicitly warns that if a campaign previously generated conversions at $5 with a Target CPA of $10, the actual cost may move closer to $10.

The change applies to Search, Shopping, Performance Max, Demand Gen, and Travel. For Demand Gen, it also affects Target CPC. Campaigns without budget limitations should not change their behavior as a result of this update.

Why the Change Sparked Debate

From Google's perspective, the new mechanism makes Smart Bidding more predictable: an advertiser sets an economically justified CPA or ROAS, and the algorithm tries to maintain it while scaling.

However, some specialists perceive the update differently.

If a campaign previously delivered a ROAS of 700% instead of the specified 400% with an unchanged budget, bringing actual performance closer to the target may mean losing some revenue.

Similarly, an increase in CPA from $20 to $35 with the same budget can reduce the number of conversions.

Therefore, the key question is not how accurately the algorithm meets the specified target, but what happens to the actual economics of advertising: the number of sales, acquisition cost, and conversion value.

What Specialists Are Saying: Reddit Reactions

Discussions in r/PPC and r/googleads from August through October show a mixed picture.

The most noticeable group of posts focuses on deteriorating results: specialists complain about increasing CPA and CPC, declining ROAS, and unstable conversion volume.

Some advertisers report that after the update, they abandoned Target CPA in favor of Maximize Conversions. Others note a sharp decline in the performance of Shopping and Performance Max.

However, there are also opposing reviews. Some specialists have not noticed significant changes, while individual advertisers report increased ROAS, improved CPA, or growth in conversions.

Particularly revealing are discussions in which different participants describe completely different results following the same update date.

The overall assessment of the public reaction is more negative than positive, but not unequivocal. The most critical posts receive considerable attention, while stable campaign performance generates less discussion.

This is not a representative survey of Google Ads advertisers. In addition, negative results cannot automatically be attributed to the update: performance trends are influenced by seasonality, competition, changes in settings, and attribution delays.

Affect's Initial Results: Campaign Performance Analysis

The Affect team evaluated the performance of managed advertising campaigns based on a 20-week conversion history.

32% of campaigns increased their efficiency, moving closer to their established target CPA or ROAS.

At the same time, 89% of campaigns either improved their performance or maintained their previous level of efficiency.

These data show a more favorable picture than might be assumed based solely on critical Reddit discussions.

At the same time, the results do not mean that the update itself improved the performance of 89% of campaigns. The figures reflect campaign trends within Affect's sample and may depend on budget management, target adjustments, and other factors.

It is also important to distinguish between the observation period and the time since the release: 20 weeks is the historical data window, not the length of time the updated algorithm has been operating since August.

What Advertisers Should Do

Two months after the update was implemented, the main recommendation remains to review whether established targets correspond to actual business metrics.

Particular attention should be paid to Limited by Budget campaigns where the actual CPA has historically been significantly lower than Target CPA, or ROAS has substantially exceeded Target ROAS.

If a business needs a CPA of $25, there is no point in keeping Target CPA at $50 simply because the algorithm previously delivered a more favorable result on its own.

Google offers the Bid Target Adjustment Tool for reviewing and adjusting target values.

After changing targets, it is recommended to evaluate results not immediately, but after at least one or two conversion cycles.

In some cases, it makes sense to compare Target CPA with Maximize Conversions, but neither strategy has a universal advantage over the other.

Conclusion

The Target CPA and Target ROAS update became one of the most discussed Google Ads changes in the second half of 2026.

The public reaction among specialists has been more negative than positive, but actual results are mixed.

Affect's data show that with proper target management, most of the campaigns studied were able to maintain or improve their performance.

The main conclusion from the first two months is that Target CPA and Target ROAS should be treated as real economic benchmarks, rather than formal limits that the algorithm will automatically exceed.