Why did my Google Ads cost per sale go up?

It went up because on August 17, 2026, Google changed how the target you set actually works. Budget-limited campaigns sometimes used to beat their target and come in cheaper. Now they move toward the target itself. Say you set SAR 100 as your target cost per sale and your account was selling at SAR 55. Today you are closer to SAR 100.

What changed in budget-limited campaigns?

The target became a destination, not a ceiling. Google says on its change page that it updated its systems on August 17, 2026. The goal is more stable and predictable performance against the targets you set, even when you adjust your budget. The change applies to campaigns with the "Limited by budget" status, meaning the budget caps how much the campaign can show. Those campaigns must also bid toward a target cost per conversion (Target CPA) or a target return on ad spend (Target ROAS).

Google's own example is clear. Take a campaign with a $10 target cost per conversion that actually achieves $5. After the update, it will start moving toward $10. Google advises lowering the target to $5 if you want to keep your recent performance.

Before that, on July 6, 2026, Google opened a target adjustment tool. It suggests a target based on your campaign's recent performance. The update covers Search, Shopping, Performance Max, Demand Gen, Display, Hotel and Travel campaigns. It does not cover App campaigns, or Video campaigns for reach or views.

How is a Saudi account affected differently?

The difference is that "Limited by budget" is the normal state here, not the exception. A store that starts at SAR 200 a day lives inside that status all year. So the update hits that store, not the account that spends without a cap. Accounts that are not budget-limited are outside the change entirely, by Google's own wording.

A second difference is timing. Google says the update aims for stable performance even when you change your budget. And we are entering a season when budgets go up. National Day, then White Friday, make budget increases a yearly habit for Saudi stores. I wrote about this seasonal rhythm in my Snapchat piece.

A third difference is the forgotten target. Many accounts here carry a target written once, months ago, and then left alone. The account was selling below it, so nobody noticed. That is exactly the kind of target now pulling cost toward the number written in it.

When does lowering the target not help?

It does not help when you cut it to your old number in one step. A lower target makes your campaign give up pricier auctions. Sales fall with it, not only cost. On September 9, 2026, Search Engine Land published an analysis recommending steps of 10 to 20 percent, with enough time between each step.

A second limit applies if you do not measure sales properly. The target is a number built on the conversions that reach Google. If tracking is incomplete or counts sales twice, you are correcting one number with another wrong number. The same analysis makes sound conversion tracking a precondition for any target change.

A third limit is for anyone digging through their account this week. Campaigns without the "Limited by budget" status are outside this update. So are App campaigns and Video campaigns for reach and views. If you change their targets while hunting for why your cost rose, you are changing something the update never touched.

The test I run

When a store's cost per sale rose this month, I do not change the ad or the audience. I open the Status column on the Campaigns page and look for "Limited by budget". Then I compare cost per sale in July with cost per sale after August 17. I do this only in campaigns that carry that status.

Next, I lower the written target one step toward the number the account was actually achieving. I wait two weeks before the second step. Alongside it, I watch impression share, meaning how often my ad showed out of all the times it could have shown. If impression share drops along with cost, I am losing sales, not saving money.

I log three numbers on one sheet every week: the written target, the actual cost and the order count. Anyone who does not separate budget-limited campaigns from the rest will change targets on campaigns the update never touched.

Frequently asked questions

Does the change include Performance Max campaigns?

Yes. Google lists Performance Max among the covered campaigns, along with Search, Shopping, Demand Gen, Display, Hotel and Travel. The exceptions are App campaigns and Video campaigns for reach and views. The first condition still applies: the campaign must be limited by its budget.

How do I know if my account was affected?

Compare cost per sale before and after August 17, 2026, only in campaigns with the "Limited by budget" status. If cost rose there and moved closer to your written target, the most likely cause is this update. It is not your ad, and it is not your season.

Should I raise the budget instead of lowering the target?

Raising the budget takes the campaign out of "Limited by budget" status, so the update no longer affects it. But you pay more overall. The decision depends on what you want: more sales volume or a lower cost per sale. Details of the accounts I manage are on the work page.