7 Google Ads Updates Every Business Must Act On This July (August 17 Deadline)

google-ads-july-2026-updates
Aug 17Google bidding change deadline — action required
19%more conversions with Smart Bidding Exploration
Jul 6Bid Target Adjustment Tool rolling out now
Feb 27Standalone call ads stop serving entirely

July 2026 is shaping up to be one of the busiest months for Google Ads changes in recent memory. There are two hard deadlines coming up — one in mid-July and one on August 17 — that require action from every business running Google Ads. On top of that, Google has rolled out several powerful new features that can meaningfully improve your campaign performance if you use them correctly.

Here’s everything you need to know — with clear action steps for each update.

⚠️ Urgent: The August 17 bidding change is the most important update in this article. If you have budget-limited campaigns running on Target CPA or Target ROAS, this change could quietly increase your costs from August 17. Read Section 1 first and act before the deadline.

1. ⚠️ August 17 Deadline — Google Bidding Change You Must Act On

This is the most urgent update this month. From August 17, 2026, Google is changing how Smart Bidding works for budget-limited campaigns — and it could quietly raise costs on your best-performing campaigns if you don’t act before the deadline.

What’s Changing

Budget-limited campaigns will be pulled back toward their Target CPA or ROAS

Here’s the situation many advertisers have been benefiting from without realising it:

You set a Target CPA of $50. But because your campaign is limited by budget, Google has actually been delivering leads at $30 — significantly better than your target. This happens because budget constraints force Google to be more selective about which auctions to enter.

From August 17, Google is closing this gap. Budget-limited campaigns will be pulled back toward their stated targets — meaning if your target is $50, Google will stop delivering at $30 and move toward $50 instead. For many advertisers this means costs going up without any change in budget.

What to do before August 17:

  1. Go to your Google Ads account and identify every campaign marked “Limited by budget”
  2. For each limited campaign, check your actual CPA or ROAS vs your target — is there a gap?
  3. If your actual performance is better than your target, lower your target to match your actual performance before August 17 to lock in the better results
  4. Alternatively, increase your budget so the campaign is no longer budget-limited
  5. Use the new Bid Target Adjustment Tool (rolling out July 6) to make this process faster
Example: Your campaign targets $50 CPA but is actually delivering at $30. Before August 17, lower your Target CPA to $30. This locks in the better performance and prevents Google from drifting costs upward after the change. Don’t leave this until the last minute.

2. New Bid Target Adjustment Tool Rolling Out July 6

Google is rolling out a Bid Target Adjustment Tool starting July 6 — which is this week. You’ll receive a notification in your Google Ads account when it becomes available.

New Tool

What the Bid Target Adjustment Tool does

This tool is designed specifically to help advertisers prepare for the August 17 bidding change. It shows you:

  • Each campaign’s historical actual CPA or ROAS performance
  • The gap between your stated target and your actual performance
  • Recommended target adjustments based on your history
  • A one-click way to apply the updated targets across multiple campaigns

This makes the August 17 preparation significantly faster — instead of manually checking each campaign, you can review and update all targets in one place.

What to do: When you receive the notification in your account, open the tool immediately. Review every campaign flagged and apply the recommended target adjustments before August 17.

3. Smart Bidding Exploration — 19% More Conversions

Alongside the bidding changes, Google has launched Smart Bidding Exploration — a new feature that lets your campaigns chase conversions from search queries they are not currently reaching.

New Feature

Find new profitable demand without losing control of your targets

Smart Bidding Exploration works by allowing you to set a ROAS tolerance — a range within which Google can explore new query categories that your campaigns haven’t been winning before. Rather than only bidding on queries you already know convert, it intelligently tests new territory within your defined risk tolerance.

The results so far are significant:

  • Campaigns using Smart Bidding Exploration see an 18% lift in unique converting query categories
  • Average of 19% more conversions compared to campaigns not using it
  • Already live in all Performance Max campaigns without product feeds globally
  • Beta rolling out to Shopping and feed-based Performance Max campaigns

What to do: If you run Performance Max campaigns, check if Smart Bidding Exploration is available in your account. Enable it with a conservative ROAS tolerance first — test for 30 days, then adjust based on the quality of new conversions coming in.

Important caveat: Smart Bidding Exploration works best when your conversion tracking is accurate and your landing pages convert well. If you have tracking issues or a weak landing page, enabling exploration will find new traffic — but it won’t convert and you’ll waste budget. Fix those foundations first.

4. New Promotion Mode for Peak Periods

New Feature

Temporarily boost performance during sales, launches, and peak periods

Google has launched Promotion Mode — a new feature that lets you temporarily loosen your ROAS tolerance and increase budget for a defined period, then automatically return to normal settings afterwards. It’s currently in beta for Search and Performance Max campaigns.

This is particularly useful for:

  • Product launches or service promotions
  • Seasonal peaks — Black Friday, Christmas, end of financial year
  • Limited-time offers where you want to maximise reach for a short window
  • Flash sales or time-sensitive campaigns

What to do: If you run seasonal promotions, add Promotion Mode to your toolkit. Set it up before your next peak period rather than scrambling to adjust settings manually in the middle of a promotion.

5. 4 Attribution Models Being Removed Mid-July

This one has a mid-July deadline and affects how Google measures which of your ads are driving conversions.

Action Required

First click, linear, time decay, and position-based attribution are being removed

Starting mid-July 2026, Google is removing the ability to select these four attribution models for conversions in Google Ads:

  • First click — credits the first ad click in the journey
  • Linear — splits credit equally across all touchpoints
  • Time decay — gives more credit to clicks closer to the conversion
  • Position-based — gives 40% credit each to first and last click, 20% to the middle

Going forward, only two attribution models will be available: Data-driven attribution (the default and recommended option) and Last click.

What to do:

  • Go to Google Ads → Tools → Conversions
  • Check which attribution model each of your conversion actions is using
  • If any are set to the four models being removed, switch them to Data-driven attribution before mid-July
  • Data-driven attribution is Google’s recommended model — it uses machine learning to assign credit based on actual conversion path data from your account

6. Call Ads Being Retired — What to Do Now

If you use standalone call ads to generate phone leads — this update directly affects you.

Deprecation

Standalone call ads stop serving entirely by February 2027

  • From February 2026 — no new standalone call ads can be created
  • Existing call ads continue running for now
  • From February 2027 — all standalone call ads stop serving entirely

The replacement: Add your phone number as a call asset to your existing Responsive Search Ads. This achieves the same result — your phone number appears directly in the ad — but within the more flexible RSA format that supports all other ad assets too.

What to do right now:

  • Check if you have any standalone call ad campaigns running
  • Create Responsive Search Ads for those campaigns if you haven’t already
  • Add a call asset with your phone number to those RSA campaigns
  • Don’t wait until February 2027 — the sooner you migrate, the more performance data your new RSAs can accumulate

7. Ask Advisor — Google’s New Unified AI Agent

Google has introduced Ask Advisor — a new unified AI agent built with Gemini that spans Google Ads, Google Analytics, Merchant Center, and Google Marketing Platform in one interface.

New Tool

Your always-on AI strategic partner across all Google marketing tools

Think of Ask Advisor as a marketing assistant that can see across all your Google products simultaneously. You can ask it questions like:

  • “Why did my conversions drop last week?”
  • “Which campaigns are most efficient at driving revenue?”
  • “What should I do to improve my Performance Max results?”
  • “Show me which landing pages have the highest bounce rate from paid traffic”

Rather than switching between Google Ads, Analytics, and Merchant Center separately, Ask Advisor connects the dots across all of them and gives you a unified answer in plain language.

Our take: This is genuinely useful for saving time on cross-platform analysis. The quality of its answers depends entirely on the quality of your tracking and data setup. If your conversion tracking is broken or your Analytics is misconfigured, Ask Advisor will give you confident-sounding but misleading answers. As always — fix your data foundations first.

What Every Business Should Do Right Now

Action Plan

Your July 2026 Google Ads checklist — in order of urgency

  1. TODAY — Check budget-limited campaigns
    Identify every campaign marked “Limited by budget.” Check actual CPA/ROAS vs target. If actual is better than target, lower your target now — before the August 17 change raises your costs.
  2. JULY 6 — Use the Bid Target Adjustment Tool
    When you get the notification in Google Ads, open the tool and apply recommended target adjustments across all affected campaigns.
  3. MID-JULY — Update attribution models
    Switch any conversion actions using first click, linear, time decay, or position-based attribution to data-driven attribution before Google removes them.
  4. THIS MONTH — Test Smart Bidding Exploration
    If you run Performance Max, enable Smart Bidding Exploration with a conservative ROAS tolerance. Monitor for 30 days.
  5. THIS MONTH — Migrate call ads
    If you run standalone call ads, create RSA equivalents with call assets now. Don’t wait until February 2027.
  6. ONGOING — Try Ask Advisor
    Start using Ask Advisor for cross-platform reporting questions. It saves significant time on analysis if your data is clean.
The common thread in all these updates: Google is automating more and giving advertisers less manual control — but only advertisers with clean conversion tracking, strong landing pages, and clear campaign goals benefit from this automation. If your foundations are weak, more automation just makes problems happen faster. Fix your foundations first — then let Google’s AI work for you.

Not Sure If Your Campaigns Are Ready for These Changes?

Book a free strategy call with Zexers. We’ll audit your Google Ads account, check your budget-limited campaigns before the August 17 deadline, update your attribution models, and make sure you’re set up to benefit from the new features — not hurt by them.

Book My Free Google Ads Audit

Free audit. No commitment. Response within 1 business day.

Frequently Asked Questions

What happens if I don’t act before the August 17 bidding deadline?
If you have budget-limited campaigns delivering better performance than their stated targets, those campaigns will drift toward their targets after August 17. This means your cost per lead or cost per acquisition could increase without any change in your budget. The fix is simple — lower your targets to match your actual performance before August 17. Use the Bid Target Adjustment Tool rolling out July 6 to do this efficiently.
What is data-driven attribution and why is Google switching to it?
Data-driven attribution uses machine learning to analyse the actual paths customers take before converting and assigns credit to each touchpoint based on its real contribution to the conversion. Google is switching to it because it’s more accurate than rule-based models like first click or linear attribution, and it feeds better signals to Smart Bidding algorithms. The more accurate your attribution, the better Google’s AI can optimise your campaigns.
Should I enable Smart Bidding Exploration on all my campaigns?
Start with one Performance Max campaign that already has strong conversion data and a well-converting landing page. Set a conservative ROAS tolerance, run for 30 days, and review the quality of new conversions. If results are good, expand to other campaigns. Don’t enable it on campaigns with tracking issues or poor landing pages — it will find traffic but won’t convert it.
I run call ads for my business — do I need to do anything urgently?
Not urgently — existing call ads continue running until February 2027. But we recommend migrating now rather than later. Create Responsive Search Ads for those campaigns and add your phone number as a call asset. The sooner you switch, the more performance data your new RSAs will accumulate, which helps Google’s AI optimise them better over time.
How is Ask Advisor different from Gemini already in Google Ads?
Gemini inside Google Ads focuses on campaign-level insights and reporting within Google Ads specifically. Ask Advisor is broader — it connects Google Ads, Google Analytics, Merchant Center, and Google Marketing Platform in one unified interface. You can ask questions that span multiple platforms and get a single connected answer rather than having to check each platform separately.
Z
Zexers Performance Team

Performance marketing agency specializing in Google Ads, SEO, and lead generation. We monitor every Google Ads update so our clients never get caught out by deadline changes or miss new features that could improve their results.

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