Growing Ecommerce – The Retail Growth Podcast

Google's Smart Bidding Change: Why Your ROAS Is About to Drop


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Starting August 17th, Google is quietly rewriting how Smart Bidding treats campaigns that are limited by budget — and if your account is currently over-delivering on Roas, this affects you directly.

In this episode, Mike Ryan and Chris break down Google's upcoming change to budget-limited campaigns, why "over-delivering" Roas is being treated as money left on the table, and the carrot-and-stick logic behind Google's new Bid Target Adjustment tool.

Whether you're comfortable with your current Roas buffer or actively trying to scale, this episode explains exactly what will shift under the hood — and what to do before the change hits.

What you'll learn:

  1. What changes on August 17th for budget-limited campaigns
  2. Why campaigns over-delivering Roas are Google's real target
  3. The two mechanical levers Google can pull to force Roas down (worse clicks vs. higher CPCs)
  4. Why smart bidding is structurally conservative — and why ~25% of campaigns always over-deliver
  5. The new Bid Target Adjustment tool and what it's really nudging you toward
  6. How this connects to Google's broader push (Demand Gen budget pacing, flight-based budgeting, Smart Bidding Exploration)
  7. The workaround: smarter product segmentation and campaign structure

About Smarter Ecommerce (smec):

Smarter Ecommerce (smec) empowers e-commerce brands with AI-driven PPC automation that optimizes for profit and business outcomes while maintaining strategic control.

The platform activates first-party data - profit margins, customer lifetime value, and key business metrics - to automate campaign optimization toward goals like profitability and efficient growth, while detailed campaign insights provide full transparency and enable PPC teams to focus on strategic oversight rather than manual execution.

As a Google Premier Partner and three-time Microsoft Retail Partner of the Year, smec manages over €500 million in ad spend and drives €5B+ in annual e-commerce revenue for 350+ global retail clients including THG, Snipes, REWE, and Intersport.

Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:

smec - Smarter Ecommerce: https://www.smarter-ecommerce.com
LinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbh
Newsletter: https://smarter-ecommerce.com/en/newsletter/
Instagram: https://www.instagram.com/smarterecommerce/



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