1. Smart Bidding Exploration Expands to Performance Max and Shopping

Smart Bidding Exploration, which was previously limited to Search campaigns, is now rolling out globally to all Performance Max campaigns without a product feed. A new beta is also open for standard Shopping campaigns and Performance Max campaigns that use a product feed .

The feature works by letting advertisers set a flexible ROAS tolerance—a percentage by which the target ROAS can be relaxed. This gives Google’s AI room to bid on less obvious but potentially converting queries that a strict target would otherwise skip. The result, per Google’s internal data (March–April 2025), is an average lift of 18% in unique search query categories that generate conversions, and a 19% increase in total conversions for campaigns using the feature .

This expansion is notable because Performance Max campaigns have historically offered limited visibility into where conversions originate. By loosening rigid ROAS guardrails within a controlled tolerance, advertisers can now capture demand from broader, less predictable traffic sources without manually renegotiating targets daily .

2. Promotion Mode Beta for Handling Demand Spikes

Promotion Mode is a new beta feature designed for temporary, scheduled adjustments to bidding and budgets during high-demand windows—think flash sales, seasonal promotions, or product launches. It lets advertisers set a start and end date during which Google can temporarily modify the ROAS tolerance and add a supplementary daily budget on top of the campaign’s existing spend .

The mode is compatible with both standard daily budgets and Campaign Total Budgets, meaning advertisers who operate within fixed-spend frameworks can still accelerate performance when it matters most . Currently, Promotion Mode is available in beta for Search and Performance Max campaigns .

This solves a longstanding workflow problem: advertisers previously had to manually dial targets up or down before an event, then remember to revert them afterward. Promotion Mode bakes the entire cycle into a scheduled configuration, reducing the risk of accidental overspend or missed opportunity once the promotion window closes.

3. Backend Bidding Change on August 17, Plus the July 6 Bid Target Adjustment Tool

The most consequential technical change takes effect on August 17, 2026, when Google updates its bidding engine to handle campaigns constrained by budget differently. After this date, budget-limited campaigns using Target CPA, Target ROAS, or Target CPC strategies will be optimized to deliver performance that more consistently matches their stated targets, even when the daily budget routinely caps spend .

The practical implication: campaigns that have historically undershot or overshot their targets because of budget pressure will see that gap narrow. However, this also means some advertisers may need to adjust their targets preemptively so the new optimization doesn’t inadvertently reduce volume or overspend early in the day.

To facilitate that review, Google is releasing a Bid Target Adjustment Tool on July 6, 2026. It will surface notifications and recommendations inside the Google Ads interface, showing historical performance alongside suggested target updates so advertisers can lock in their preferred approach before the August 17 switch. Google’s help documentation explicitly notes that advertisers will see a notification guiding them to this tool starting July 6 .

The tool presents three broad options: maintain historical targets as-is, adjust them to stay at a desired CPA or ROAS level, or apply a custom adjustment based on business goals .

What Advertisers Should Do Now

These updates are not standalone features—they interact. A Shopping campaign that uses Smart Bidding Exploration to widen its reach might, during a seasonal spike, also leverage Promotion Mode, and then encounter the August 17 pacing change. The sequence matters.

• Campaigns currently limited by budget should be audited using the Bid Target Adjustment Tool as soon as it goes live on July 6. Waiting until August risks automatic optimization that doesn’t align with manual expectations.
• Shopping and PMax advertisers curious about Exploration can request the beta for product-feed campaigns now; PMax without a product feed already has the feature globally .
• Brands planning flash sales or seasonal events should test Promotion Mode in a controlled beta environment, paying close attention to how the temporary budget layer interacts with existing campaign total budgets.

All three announcements underscore Google’s broader push toward AI-driven budget management—where rigid manual controls are being replaced by tolerance bands, scheduled overrides, and engine-level pacing logic. As Q1 2026 data already indicated, tROAS Smart Bidding is outperforming manual CPC by an average of 38% across industries , and these updates are likely to widen that gap further.

1. Smart Bidding Exploration Expands to Performance Max and Shopping

Smart Bidding Exploration, which was previously limited to Search campaigns, is now rolling out globally to all Performance Max campaigns without a product feed. A new beta is also open for standard Shopping campaigns and Performance Max campaigns that use a product feed .

The feature works by letting advertisers set a flexible ROAS tolerance—a percentage by which the target ROAS can be relaxed. This gives Google’s AI room to bid on less obvious but potentially converting queries that a strict target would otherwise skip. The result, per Google’s internal data (March–April 2025), is an average lift of 18% in unique search query categories that generate conversions, and a 19% increase in total conversions for campaigns using the feature .

This expansion is notable because Performance Max campaigns have historically offered limited visibility into where conversions originate. By loosening rigid ROAS guardrails within a controlled tolerance, advertisers can now capture demand from broader, less predictable traffic sources without manually renegotiating targets daily .

2. Promotion Mode Beta for Handling Demand Spikes

Promotion Mode is a new beta feature designed for temporary, scheduled adjustments to bidding and budgets during high-demand windows—think flash sales, seasonal promotions, or product launches. It lets advertisers set a start and end date during which Google can temporarily modify the ROAS tolerance and add a supplementary daily budget on top of the campaign’s existing spend .

The mode is compatible with both standard daily budgets and Campaign Total Budgets, meaning advertisers who operate within fixed-spend frameworks can still accelerate performance when it matters most . Currently, Promotion Mode is available in beta for Search and Performance Max campaigns .

This solves a longstanding workflow problem: advertisers previously had to manually dial targets up or down before an event, then remember to revert them afterward. Promotion Mode bakes the entire cycle into a scheduled configuration, reducing the risk of accidental overspend or missed opportunity once the promotion window closes.

3. Backend Bidding Change on August 17, Plus the July 6 Bid Target Adjustment Tool

The most consequential technical change takes effect on August 17, 2026, when Google updates its bidding engine to handle campaigns constrained by budget differently. After this date, budget-limited campaigns using Target CPA, Target ROAS, or Target CPC strategies will be optimized to deliver performance that more consistently matches their stated targets, even when the daily budget routinely caps spend .

The practical implication: campaigns that have historically undershot or overshot their targets because of budget pressure will see that gap narrow. However, this also means some advertisers may need to adjust their targets preemptively so the new optimization doesn’t inadvertently reduce volume or overspend early in the day.

To facilitate that review, Google is releasing a Bid Target Adjustment Tool on July 6, 2026. It will surface notifications and recommendations inside the Google Ads interface, showing historical performance alongside suggested target updates so advertisers can lock in their preferred approach before the August 17 switch. Google’s help documentation explicitly notes that advertisers will see a notification guiding them to this tool starting July 6 .

The tool presents three broad options: maintain historical targets as-is, adjust them to stay at a desired CPA or ROAS level, or apply a custom adjustment based on business goals .

What Advertisers Should Do Now

These updates are not standalone features—they interact. A Shopping campaign that uses Smart Bidding Exploration to widen its reach might, during a seasonal spike, also leverage Promotion Mode, and then encounter the August 17 pacing change. The sequence matters.

• Campaigns currently limited by budget should be audited using the Bid Target Adjustment Tool as soon as it goes live on July 6. Waiting until August risks automatic optimization that doesn’t align with manual expectations.
• Shopping and PMax advertisers curious about Exploration can request the beta for product-feed campaigns now; PMax without a product feed already has the feature globally .
• Brands planning flash sales or seasonal events should test Promotion Mode in a controlled beta environment, paying close attention to how the temporary budget layer interacts with existing campaign total budgets.

All three announcements underscore Google’s broader push toward AI-driven budget management—where rigid manual controls are being replaced by tolerance bands, scheduled overrides, and engine-level pacing logic. As Q1 2026 data already indicated, tROAS Smart Bidding is outperforming manual CPC by an average of 38% across industries , and these updates are likely to widen that gap further.