Google Ads Updates July 2026: Smart Bidding, AI Features & Privacy Changes

What Are the Key Google Ads Changes in July 2026?

Google Ads continues to evolve with a flurry of updates that affect how advertisers bid, create ads, and measure performance. For marketers juggling platforms like TikTok Ads and Google Ads, staying informed is essential. Below we break down the most impactful changes announced in late July 2026, from Smart Bidding adjustments to new AI-powered features.

Google Smart Bidding Update on August 17: More Predictable but Potentially Less Aggressive

One of the most debated changes is Google's upcoming Smart Bidding update, scheduled for August 17, 2026. The key change is: Target CPA and Target ROAS campaigns that are budget-limited will now bid more conservatively to stay closer to their set targets, rather than overperforming via aggressive bidding. This update aims to make performance more predictable, but advertisers who have enjoyed lower-than-target CPA or higher-than-target ROAS may see those advantages disappear.

According to aysa.ai, the update could force advertisers to lower their targets to preserve current overperformance. The practical impact is significant: if your campaigns have been exceeding targets because Google was bidding aggressively while budget-limited, you will need to adjust either budgets or targets after August 17.

What Advertisers Should Do Now

• Review campaigns that are often budget-limited.
• Compare current performance to target CPA/ROAS.
• Lower targets slightly if you want to maintain volume and CPA levels.
• Test bidding strategies on a subset before rolling out globally.

Google Ads AI Max: Automated Ad Copy Put to the Test

Google continues to expand its AI capabilities. Search Engine Land reported on a real-world test of Google Ads AI Max's automated ad copy. The tool generated ad variations that performed comparably to human-written copy, though creative control remains a concern for some advertisers. This feature is especially relevant for social media advertisers on platforms like TikTok who rely on rapid creative iteration.

Mandatory Passkeys for Google Ads API Users

Security is tightening. Google announced that passkeys will become mandatory for all Google Ads API users, replacing traditional passwords. As covered by Search Engine Land, this change aims to reduce account takeovers and phishing risks. Advertisers managing large accounts or using scripts must set up passkeys before the deadline to avoid service interruptions.

New Google Ads Status: "Has Improvements"

A subtle but useful UI change is the new campaign status label "Has Improvements." According to Seroundtable, this status appears when Google's optimization score suggests changes that could boost performance. Unlike the "Eligible" or "Limited" statuses, "Has Improvements" is a nudge rather than an alert. It helps advertisers proactively refine campaigns without waiting for performance drops.

Product Clicks and Non-Product Clicks Metrics

Google Ads introduced two new metrics: Product Clicks and Non-Product Clicks. As explained on Seroundtable, these separate interactions with product listings from other click types, giving ecommerce advertisers clearer insight into shopping ad performance. This is particularly valuable for retailers running both Google Shopping and TikTok Ads campaigns.

AI-Generated Images with Upload Image Feature

Creative automation gets a boost. Google now allows advertisers to upload an image and use AI to generate variations. Seroundtable reports that this feature is available within the ad creation flow. For advertisers juggling multiple platforms, AI-assisted image generation can save time while maintaining brand consistency.

Expanded Policy: Social Casino Games Now Allowed

Google updated its gambling and games policy to permit ads for social casino games (simulated gambling with no real-money prizes). The update, noted by Seroundtable, opens new opportunities for developers and advertisers in the social gaming space. However, advertisers must comply with local regulations.

Household Income Exclusions for Performance Max Campaigns

Performance Max campaigns gain new targeting controls. Advertisers can now exclude audiences by household income in certain countries, as reported by Seroundtable. This allows brands that cater to specific income segments to better align their PMax campaigns with their target market.

Conversion Measurement Documentation Updated

Google updated its conversion measurement documentation to clarify timing and data sources. The update, detailed on Seroundtable, explains how Google attributes conversions when multiple touchpoints exist. Advertisers using last-click or data-driven attribution should review the documentation to ensure accurate tracking.

Google Ads Editor Version 2.13 Released

Offline management gets an update. The latest version of Google Ads Editor, version 2.13, is now available. As per Seroundtable, it includes support for new campaign types and performance improvements. Advertisers managing large accounts across multiple platforms (including TikTok) often rely on editors for bulk changes.

A Subtle Bidding Change You Might Have Missed

Beyond the headline Smart Bidding update, a more subtle change was noted by Practical Ecommerce. The piece discusses how Google adjusted the way it handles bid adjustments at the ad group level, potentially affecting auto-bidding algorithms. This reminds advertisers to audit their bid adjustments regularly.

Regulatory Fines: A Warning for Social Media Advertisers

While not a Google Ads update per se, the Turkish Ministry of Trade's fines on businesses violating advertising regulations serve as a cautionary tale for all social media advertisers. According to en.haberler.com, 232 businesses were fined a total of 28.3 million lira for illegal real estate and vehicle ads on platforms like Instagram, Facebook, and WhatsApp. For advertisers running campaigns on TikTok and Google, compliance with local advertising laws is critical.

Comparison Table: Key July 2026 Google Ads Updates

Update	Impact	Action Required	Source
Smart Bidding (Aug 17)	Budget-limited campaigns become more predictable	Adjust targets if overperforming	aysa.ai
AI Max automated ad copy	Comparable to human copy; saves time	Test with low budgets first	Search Engine Land
Mandatory passkeys for API	Increased security	Set up passkeys before deadline	Search Engine Land
New status "Has Improvements"	Optimization nudges	Review recommendations	Seroundtable
Product/Non-Product Clicks	Clearer shopping ad insights	Use for ecommerce reporting	Seroundtable
AI-generated images from upload	Creative automation	Experiment with variations	Seroundtable
Social casino games allowed	New vertical opportunity	Ensure compliance	Seroundtable
Household income exclusions for PMax	Better targeting	Enable in campaign settings	Seroundtable
Conversion measurement doc update	Attribution clarity	Review documentation	Seroundtable
Editor v2.13	New campaign support	Update offline tool	Seroundtable
Subtle bidding change	Bid adjustment handling	Audit current settings	Practical Ecommerce

How These Updates Affect TikTok Ads Advertisers

If you manage both Google Ads and TikTok Ads, the July 2026 updates encourage a more unified approach. The Smart Bidding change means your Google campaigns may become less aggressive, potentially shifting budget toward social platforms like TikTok to fill the gap. AI-powered creative tools (AI Max and AI image generation) can streamline asset creation across both channels. Meanwhile, stricter security (passkeys) and clearer metrics (Product Clicks) help you manage multi-platform campaigns more effectively.

Conclusion

Google Ads' July 2026 updates range from minor UI tweaks to major bidding algorithm changes. Advertisers who proactively adjust their strategies—especially around the August 17 Smart Bidding update—will maintain performance. For those also investing in TikTok Ads, these changes offer opportunities to refine cross-platform approaches. Stay agile, test new features, and keep compliance in mind.