If your actual ROAS is higher than your Target ROAS, the campaign is generating more conversion value per unit of ad spend than the target you gave Google. That can be good news, but a large gap may also mean your target no longer represents the efficiency you actually want.
From August 17, 2026, this gap matters more for campaigns that are limited by budget. Google says affected campaigns will optimize more consistently toward the stated target.
So if your campaign has a 300% Target ROAS but has recently achieved 600%, do not assume 600% will automatically remain the normal outcome after the bidding update.
What is the difference between Target ROAS and actual ROAS?
Target ROAS is the average conversion value per unit of ad spend you ask Google Ads to pursue. Actual ROAS is the result the campaign really achieved over a selected period.
A Target ROAS of 400% means the objective is approximately four units of conversion value for every one unit spent. If actual ROAS is 600%, the campaign has been delivering about six units of conversion value for every one unit spent.
The two numbers do not need to match every day. Smart Bidding operates across many auctions, and actual results fluctuate.
The important question is whether a persistent gap represents temporary performance, a budget constraint, or a target that is no longer aligned with your business.
Why can actual ROAS be much higher than the target?
There are several possible reasons. Demand may be unusually strong, conversion rates may have improved, the campaign may be capturing highly efficient traffic, or the budget may be restricting delivery to a smaller set of opportunities.
The August 2026 Google Ads update focuses on that last case. Google says some budget constrained target based campaigns have historically overperformed their targets.
Once the new behavior starts, those campaigns will optimize more consistently toward the target even when budget changes.
This means a target that was previously treated as a loose efficiency floor may function more like the performance objective you would expect from its name.
What could happen after August 17, 2026?
If the campaign is both limited by budget and materially overperforming its Target ROAS, actual performance may trend closer to the stated target after the update.
Suppose your Target ROAS is 250% and recent actual ROAS is 500%. A target of 250% tells the system that approximately 2.5 units of conversion value for every unit of spend is within your stated goal.
After the change, the bidding system may pursue additional opportunities that still satisfy that looser objective. That can increase conversion value or volume while reducing measured efficiency from the unusually high recent level.
Google explains the broader behavior in its official target based bidding update.
Should you immediately raise Target ROAS to match actual ROAS?
Do not change the number simply because actual ROAS is higher. First decide what ROAS the business needs.
A recent 600% actual ROAS might be excellent, but perhaps your business can profitably scale at 450%. In that situation, a 450% target may provide more room for growth than forcing the system to maintain 600%.
The opposite can also be true. If a 300% target would create poor margins after fulfillment, returns or sales costs, leaving the target at 300% may be too aggressive.
Use recent actual performance as evidence, then combine it with margin, conversion quality and growth goals.
How should B2B companies think about ROAS?
For B2B campaigns, direct revenue is often delayed or missing from the ad platform. A form submission today may not become a sales opportunity for weeks or a customer for months.
That makes raw platform ROAS less reliable unless offline conversion values and CRM outcomes are being passed back into Google Ads. If conversion value is simply an estimated lead value, the number is only as good as the assumptions behind it.
B2B companies should therefore connect paid media performance with qualified lead rate, opportunity rate, pipeline value and closed revenue.
Mustard Seed's broader advisory approach treats paid media as part of the go to market system rather than an isolated channel.
What should you check before changing the target?
Review campaign status, recent actual ROAS, conversion volume, conversion delay and whether the campaign has been budget constrained. Then calculate the minimum return your business can accept.
Also check whether a temporary event explains the recent performance. A short promotion, one large conversion, seasonal demand or a tracking change can make recent ROAS look unusually strong.
If the campaign has enough stable history, compare multiple time periods rather than relying on the last few days.
After changing a target, Google recommends waiting one to two conversion cycles before evaluating the new result.