Google Confirms End of Smart Bidding Bid Suppression — GCC Advertisers Should Expect CPC Increases
Google has officially confirmed the resolution of a Smart Bidding bug that caused systematic bid suppression across Search and Performance Max campaigns for over a month. The issue — which first surfaced in mid-August 2026 — caused Google's Target CPA and Target ROAS bidding algorithms to set lower bids than intended, artificially deflating CPCs and skewing performance data for affected advertisers.
Now that the bug is fixed, advertisers should expect a normalisation of CPCs — meaning bids will return to levels the algorithm originally intended, which in most cases means higher CPCs than were observed during the suppression window.
Timeline of the Issue
Advertisers begin reporting anomalously low CPCs across Smart Bidding campaigns. Google acknowledges receiving reports.
Google confirms a bug in Smart Bidding's bid calculation layer affecting Target CPA and Target ROAS strategies. Investigation ongoing.
Google engineers push a fix to production. Bid normalisation begins rolling out across affected accounts.
Google issues official confirmation via Search Engine Land. Advertisers advised to review budgets and targets ahead of the normalisation period.
Full algorithm recalibration expected. Advertisers with White Friday and Peak Season campaigns should factor in adjusted CPC baselines.
What Happened During Bid Suppression?
Smart Bidding uses real-time signals — device, location, audience, time of day, search term context — to calculate the optimal bid for each auction. The bug caused the algorithm's output bid values to be systematically discounted before being submitted to the auction, resulting in lower actual CPCs than the Target CPA or ROAS strategy would have calculated under normal circumstances.
The impact was uneven: campaigns with aggressive CPA targets or in highly competitive verticals (real estate, finance, e-commerce) reported the largest discrepancies, as these auctions would normally generate the highest bids — and thus had the largest absolute gap between suppressed and true bid values.
Implications for GCC Advertisers
- White Friday / Peak Season planning: UAE and KSA advertisers preparing for White Friday (November) should recalibrate budget forecasts using pre-August 2026 CPC data as the baseline, not the suppressed August–September figures.
- Target CPA review: If you lowered Target CPA targets during the suppression period in response to anomalously good performance, consider whether those targets remain realistic now that bids normalise.
- Performance Max asset groups: PMax campaigns that appeared to be hitting performance targets during suppression may now underperform against those benchmarks. Review asset group performance weekly for the next 30 days.
- Impression share recovery: Advertisers who lost impression share during the suppression window should expect IS to recover — but this will come with higher CPCs.
- Budget pacing: Daily budget pacing may shift as CPCs normalise. Monitor spend rates in the first week post-fix to avoid budget exhaustion earlier in the day than expected.
Frequently Asked Questions
Was my account affected by the Smart Bidding bid suppression bug?
If you ran Target CPA or Target ROAS campaigns between mid-August and mid-September 2026, your account was likely affected to some degree. Check your CPC trends in Google Ads: a visible dip starting around August 17 followed by a recovery is a strong indicator.
Will Google provide any credits or compensation for the bug period?
Google has not announced any credit programme related to this bug. The company has confirmed the fix but has not addressed whether advertisers who underperformed due to suppressed bids will receive any remediation.
How should I adjust my Target CPA targets now?
Use your pre-August 2026 CPA data as your baseline. If your actual CPA during August–September appeared very efficient, that efficiency may have been partially driven by suppressed bids. Raise your Target CPA targets incrementally to avoid Smart Bidding learning phase instability.
Does this affect Performance Max campaigns differently than Search?
Yes. PMax campaigns use more auction types (Search, Display, YouTube, Shopping) and the bid suppression impact was felt across all channels. The recovery may also be more variable across channels than a pure Search campaign.
Should I switch to manual bidding temporarily while Smart Bidding recalibrates?
Generally no. Switching bidding strategies triggers a new learning period, which causes additional performance volatility. Stay on Smart Bidding, adjust targets carefully, and monitor the recalibration over 2–3 weeks.
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