Google Ads' August 2026 Bidding Update for Ecommerce: What It Means for Your Business

Google Ads is constantly evolving, and from 17 August 2026, an important update is coming to the way some ecommerce campaigns are managed.

The change affects businesses using Google's automated bidding strategies, and while Google says it's designed to make campaign performance more predictable, it could also affect your return on ad spend (ROAS) if your campaigns aren't set up correctly.

There's no need to panic - but there is a good reason to review your Google Ads account before the update rolls out.

In this article, we'll explain what's changing, who it affects, and what you should do next.

First Things First - What Is Automated Bidding?

When you advertise on Google, you're effectively competing with other businesses for a place in the search results.

Rather than manually deciding how much to bid every time someone searches, many businesses let Google do this automatically using automated bidding.

You simply tell Google your goal, for example:

• "I'd like to achieve a 500% Return on Ad Spend (ROAS)."
• "I'm happy to spend up to £20 to generate a sale."

Google then adjusts your bids automatically to try and achieve that target.

It's a fantastic tool when it's set up correctly - and it's used by thousands of ecommerce businesses every day.

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So, What's Changing?

Until now, many campaigns have actually been performing better than the targets businesses set.

For example:

• You tell Google you'd be happy achieving a 400% ROAS.
• Instead, your campaign has consistently been delivering 550% ROAS.

Great news, right?

In many cases, this happened because your campaign's daily budget was limiting how much Google could spend. Rather than entering every possible auction, Google focused on the most profitable opportunities.

From 17 August, Google will begin aiming much more closely towards the target you've actually entered.

That means if you've told Google you're happy with a 400% ROAS, the system will work harder to achieve around 400% - rather than continuing to exceed it.

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Why This Matters

Imagine you tell a builder your maximum budget is £10,000.

If they complete the project for £8,000, you'd probably be delighted.

Now imagine they started actively trying to spend closer to the full £10,000 simply because you'd said you were willing to pay it.

That's similar to what's happening here.

Many Google Ads campaigns have quietly been outperforming their targets because budget restrictions naturally encouraged Google to focus on the very best opportunities.

Now, Google's system will treat your target as something to aim for more consistently.

For some businesses, that could mean:

• Lower ROAS
• Higher advertising costs
• More consistent campaign performance
• Different spending patterns

It doesn't necessarily mean you'll spend more overall - but it does mean your existing targets suddenly become much more important.

Who Will Be Affected?

This update only affects Google Ads campaigns that:

• Use Target ROAS or Target CPA bidding.
• Are limited by budget.

If your campaigns don't meet both of those conditions, you may not notice any difference.

If you're unsure how your campaigns are set up, it's worth checking with your marketing agency or PPC specialist.

What Is ROAS?

If you've ever looked at a Google Ads report, you've probably seen the term ROAS - this stands for Return on Ad Spend.

It's a way of measuring how much revenue your advertising generates compared to what you spend.

For example:

• You spend £100 on Google Ads.
• Those ads generate £500 in sales.

This means your ROAS is 500% (or 5x).

Generally speaking, the higher your ROAS, the more profitable your advertising is.

Should You Make Changes?

Not necessarily.

Google isn't saying your campaigns will perform worse. Instead, it's changing how closely campaigns work towards the targets you've already set.

If those targets were chosen months - or even years - ago, now is a great time to review them.

Ask yourself:

• Are our current ROAS targets still realistic?
• Have our profit margins changed?
• Are we still happy with our advertising costs?
• Are our campaigns currently outperforming the targets we've given Google?

If the answer to that last question is yes, it may be worth reviewing your bidding strategy before the update takes effect.

What We're Doing for Our Clients

At BAW Creative, we're already reviewing every Google Ads account we manage ahead of the update.

We'll be checking:

• Which campaigns are affected.
• Whether current ROAS or CPA targets still make sense.
• Whether campaigns are limited by budget.
• Whether any adjustments should be made before 17 August.

For our clients, this is simply part of proactively managing their campaigns.

Our Advice

Google regularly updates its advertising platform, and most changes happen quietly in the background.

This one is different because it could change campaign performance without you making any changes yourself.

That doesn't mean your results will suddenly fall off a cliff, but it does make this a good opportunity to review your account and ensure your bidding targets still reflect your business goals.

Get More From Your Google Ads

Keeping on top of Google's latest updates is just one part of running a successful Google Ads campaign. Regular optimisation, smart bidding strategies and ongoing performance reviews all play a vital role in maximising your return on investment.

At BAW Creative, we take care of the technical side so you can focus on running your business.

Speak to our team today to find out how we can help your Google Ads work harder for your business.

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