Google Changes Search Budget Allocation To Other Websites
Google Ads will alter how search budgets are spent on other sites, affecting display expansion. This change may impact ad spending and conversion costs.
Original reporting · searchenginewatch.com
Original: “Google Ads will change how your search budget reaches other websites”
Read “Google Ads will change how your search budget reaches other websites” at Search Engine Watch →
How this was written. Adtomix wrote this article with a language model from Search Engine Watch’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Search Engine Watch’s report
- Google Ads is changing its display expansion feature to give advertisers more control over their budget allocation.
- The new system will allow advertisers to set priorities for different channels and allocate specific amounts to each.
- Search campaigns using a target impression share strategy will no longer serve ads on the display network after the change.
- Advertisers will need to monitor their campaigns closely to ensure they are achieving their desired outcomes after the change.
- The allocation of budget to the display network will be based on the campaign's average daily budget, rather than its actual spending.
Google Ads is modifying its display expansion feature, which allows search campaigns to reach users on other websites and apps. This change is set to take effect in February 2027. The update will automatically switch search campaigns to a channel-priority system, potentially shifting spending between Google's search results, search partners, and its display network.
The current setup uses a portion of the search budget to fund display ads, with a default allocation applied behind the scenes. However, the new system will give advertisers more control over how their budget is spent. They will be able to set priorities for different channels and allocate specific amounts to each.
One bidding strategy will be affected differently by the change. Search campaigns using a target impression share strategy will no longer serve ads on the display network. This may require advertisers to adjust their bidding strategies to achieve their desired outcomes.
The new system will allow advertisers to set a high or low priority for the display network and allocate a specific percentage of their daily budget to it. This will give them more control over how their budget is spent and allow them to optimize their campaigns for better results.
Google notes that the cost per conversion on the display network may vary depending on the bidding strategy and priorities used. Advertisers will need to monitor their campaigns closely to ensure they are achieving their desired outcomes. They will also need to check the cost of visits and conversions after the change to ensure they are getting the best possible return on investment.
The allocation of budget to the display network will be based on the campaign's average daily budget, rather than its actual spending. This means that the allocation will be a percentage of the average daily budget, rather than a fixed amount. For example, if a campaign has a daily budget of $200 and a 10% allocation to the display network, Google will aim to spend $20 on the display network each day.
The change will start to take effect in February 2027, but advertisers can start to transition their campaigns earlier. By applying channel priorities to a search campaign before February, advertisers can replace the existing display expansion budget behavior immediately. This will give them a head start on optimizing their campaigns for the new system. This article is based on reporting by Search Engine Watch.
Questions and answers
When will the change to Google Ads display expansion take effect?
The change is set to take effect in February 2027, but advertisers can start to transition their campaigns earlier.
How will the new system affect search campaigns using a target impression share strategy?
Search campaigns using a target impression share strategy will no longer serve ads on the display network after the change.
How will the allocation of budget to the display network be determined?
The allocation of budget to the display network will be based on the campaign's average daily budget, rather than its actual spending.
