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    Google Ads News Week 43: Channel Prioritization, Feb. 2027

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    Since October 14, 2026, Google has been rolling out Google Ads channel prioritization and budget allocation. They set which channels get budget first and can cap the Display Network at a share of your daily budget. In February 2027, the current spend allocation for Search campaigns with the Display Network ends. Plus: Conversion Lift without a Google rep, a new AI Max report and Google Ads API v26.

    At a glance

    NewsWhat changesWho it affectsAction neededSource + date
    Channel prioritization and budget allocationMark channels as high or low priority and cap spend on low-priority channels by percentage; change in February 2027Anyone running Search, Shopping, Performance Max or Demand Gen campaignsHigh: review Search campaigns with the Display Network before February 2027Google Ads & Commerce Blog, October 14, 2026
    Self-service Conversion LiftIncrementality studies for Search and Performance Max without a Google repAccounts with at least 1,000 conversionsMedium: check the requirementsSearch Engine Land, October 7, 2026
    AI Max report Search terms and ad combinationsSearch terms shown with the ad copy and landing pages they triggeredAnyone using AI Max for SearchMedium: review the report weeklySearch Engine Land, October 13, 2026
    Target ROAS calculator based on profit margin (test)Google suggests a target ROAS based on your marginOnline stores using target ROASLow: know your margin per campaignSearch Engine Land, October 6, 2026
    Google Ads API v26Search Lift metrics, Local Services in Performance Max, two releases per month going forwardAgencies and accounts with their own toolsLow to medium: check the API version in useSearch Engine Land, October 15, 2026

    Google Ads channel prioritization: What changes by February 2027

    On October 14, 2026, Google introduced two new optional controls on the Google Ads & Commerce Blog. The author is Tal Akabas, Director of Product Management at Google Ads. Search Engine Roundtable confirmed the features the same day.

    Channel prioritization: You mark channels or channel groups as "High priority" or "Low priority." According to Google, campaigns fully fund high-priority channels first, and the remaining budget goes to low-priority channels. In Search campaigns, Google Search, Search partners and the Google Display Network can each be prioritized separately. In Performance Max and Demand Gen, Google groups its own surfaces, such as Search, YouTube, Maps, Gmail and Discover, as "Google channels."

    Budget allocation: For low-priority channels, you set a maximum share of your daily budget. According to the blog, Google keeps to this limit "on a best-effort basis," meaning without a guarantee. According to Search Engine Roundtable, 0 percent is also an option.

    The controls apply at the account and campaign levels and to shared budgets. According to Google, they are rolling out to Search, Shopping, Performance Max and Demand Gen campaigns over the coming months. Important: according to Google, prioritization generally has no effect on target CPA or target ROAS campaigns that are not limited by budget. For those, the percentage cap is the effective lever.

    The deadline: according to Google, starting in February 2027, the current spend allocation setup goes away for Search campaigns with the Display Network turned on. Spend may then shift between channels. According to Google, you can keep today's behavior by setting the Display Network to "Low priority" with a 50 percent budget allocation.

    What does this mean for your business?

    Many small business accounts have switched off the Display Network in Search campaigns entirely because it often burned budget without generating inquiries. With the new cap, you can test Display or Search partners with a small share instead of choosing all or nothing. Stroe Media advises reviewing every Search campaign with the Display Network turned on before February 2027 and setting the cap you want deliberately.

    Conversion Lift for Search and Performance Max without a Google rep

    According to Search Engine Land on October 7, 2026, advertisers can now set up user-based Conversion Lift studies for Search and Performance Max campaigns themselves. Conversion Lift measures incrementality, meaning how many conversions would not have happened without the ads. On October 8, 2026, Search Engine Roundtable confirmed from Google's help documentation that a Google rep is no longer required.

    The requirements, according to Search Engine Roundtable:

    • at least 1,000 observed conversions
    • a minimum budget of US$5,000 per campaign
    • at least one compatible conversion action
    • each campaign can take part in only one study at a time

    On October 8, 2026, Dr. Web, a German web publication, noted that in Germany and the European Economic Area (EEA), consent rates under Consent Mode help determine how reliable the results are.

    What does this mean for your business?

    Many small accounts do not reach the threshold of 1,000 conversions. For online stores and larger lead generators, however, it is now possible for the first time to test the impact of Performance Max without a Google rep. Check beforehand whether your consent rate is high enough.

    AI Max for Search: New report on search terms and ad combinations

    On October 13, 2026, Search Engine Land reported on a new report for AI Max for Search called "Search terms and ad combinations." AI Max for Search is a set of AI features in Search campaigns that expands keywords and automatically adapts ad copy and landing pages. The report shows which headlines, descriptions and landing pages were served for each search term. According to Search Engine Land, Natasha Kaurra spotted it in at least one account.

    The Google Ads Help Center describes the view as the successor to "Search terms and landing pages from AI Max." The same help page lists another date: Dynamic Search Ads will be automatically upgraded to AI Max starting in February 2027. When the new report will appear in all accounts has not been confirmed.

    What does this mean for your business?

    If you use AI Max, you can now see in one place which search query triggered which automatically generated message. Review the report regularly for mismatched combinations, such as expensive services shown for simple queries. If you still run Dynamic Search Ads, plan for the switch in February 2027.

    Target ROAS from profit margin: Google is testing a calculator

    According to Search Engine Land on October 6, 2026, Google Ads is testing a calculator that suggests a target ROAS based on your average profit margin. ROAS stands for return on ad spend, meaning revenue per advertising dollar. On October 7, 2026, TechWyse confirmed that it is a limited test.

    You enter your average margin excluding ad spend, and Google suggests a target ROAS. In Search Engine Land's example, a 15 percent margin results in a break-even ROAS of 667 percent. The calculator shows weekly estimates for clicks, revenue, ad spend and profit. However, the bid strategy does not optimize for profit as a result; the tool only converts the margin into a ROAS. There is no official Google announcement.

    What does this mean for your business?

    A target ROAS that is not tied to margin is a common source of errors in store accounts. Even without the test, you can do the math yourself: 100 divided by your margin in percent gives you the break-even ROAS as a multiple. Know your margin per product group before setting target ROAS values.

    Google Ads API v26: New features and shorter release cycles

    Search Engine Land and Search Engine Roundtable reported on Google Ads API v26 on October 15, 2026. The Google Ads API is the programming interface that tools and agencies use to manage accounts automatically. New features include 15 metrics for Search Lift studies, the ability to create Local Services campaigns in Performance Max through the API, and a simplified EU political advertising declaration: campaigns targeting only locations outside the EU may no longer need it.

    According to Search Engine Land, Google is moving to two API releases per month starting with v26. The API now also provides the minimum daily budgets for Demand Gen campaigns by currency, plus account-level settings for enhanced conversions.

    What does this mean for your business?

    If you use reporting tools, scripts or bidding software connected to the API, ask the provider which version they use. With two releases per month, new features reach tools faster if the provider updates promptly. Ask specifically whether the new Search Lift metrics are supported.

    What you should do this week

    1. 1List all Search campaigns that have the Google Display Network turned on.
    2. 2Decide for each campaign whether Display should be off, capped or run as before. According to Google, "Low priority" with 50 percent keeps current behavior.
    3. 3Check your account settings to see whether the "Channel Prioritization" card is already available in your account.
    4. 4Open the search terms report in your AI Max campaigns and exclude irrelevant search terms.
    5. 5Calculate your break-even ROAS per product group from your margin and compare it with your current target ROAS values.
    6. 6Ask the providers of your reporting or bidding tools which Google Ads API version they use and when they will move to v26.

    Frequently asked questions

    Channel prioritization is a new optional control in Google Ads, introduced on October 14, 2026. You mark channels such as Google Search, Search partners or the Display Network as high or low priority. High-priority channels get budget first. Budget allocation adds a cap on the share of the daily budget that low-priority channels can spend.

    According to Google, starting in February 2027, the current spend allocation setup goes away for Search campaigns with the Google Display Network turned on. Spend may then shift between Search and Display. According to Google, setting the Display Network to low priority with a 50 percent budget allocation keeps today's behavior. Campaigns without the Display Network are not affected.

    According to Search Engine Roundtable, budget allocation also allows a value of 0 percent. Google then spends no budget on those channels. However, Google describes the caps as a best-effort target, not a hard guarantee. Alternatively, you can still turn off the Display Network in Search campaigns completely.

    No, not anymore for Search and Performance Max as of early October 2026. According to Search Engine Roundtable, you need at least 1,000 observed conversions, a minimum budget of US$5,000 per campaign and a compatible conversion action. Each campaign can take part in only one lift study at a time. In Germany, consent rates under Consent Mode affect how reliable the results are.

    Your break-even ROAS is 100 divided by your margin in percent. With a 15 percent margin, it is about 6.67, or 667 percent, as Search Engine Land shows in its example of Google's test. Below that, you earn nothing on ad-driven sales. Google is testing a calculator for this, but it is not yet available in all accounts.

    Conclusion

    Channel prioritization gives advertisers more control over the Display Network and Search partners than the old on-or-off switch. February 2027 matters twice: the budget allocation for Search campaigns with Display changes, and Dynamic Search Ads move to AI Max. Stroe Media recommends planning both changes now rather than reacting to shifting costs in February.

    Want to set up your Google Ads campaigns properly for 2027? Explore our Google Ads management, combine it with SEO or talk to us directly. You can find last week's updates in Google Ads News Week 42.

    Sources

    1. Guide your campaign spending with new priority and allocation features, Google Ads & Commerce Blog, October 14, 2026
    2. New Google Ads Controls: Channel Prioritization & Budget Allocation, Search Engine Roundtable, October 14, 2026
    3. Google opens Conversion Lift to Search and Performance Max, Search Engine Land, October 7, 2026
    4. Google Ads Self-Services Conversion Lift Measurement, Search Engine Roundtable, October 8, 2026
    5. Google Ads opens Conversion Lift for Search and Performance Max (translated from German), Dr. Web, October 8, 2026
    6. Google Ads adds Search terms and ad combinations report for AI Max, Search Engine Land, October 13, 2026
    7. About reporting in AI Max for Search campaigns, Google Ads Help, undated, accessed October 19, 2026
    8. Google Ads can now calculate Target ROAS from profit margins, Search Engine Land, October 6, 2026
    9. Google Ads Tests a Margin-Based Starting Point for Target ROAS, TechWyse, October 7, 2026
    10. Google Ads API v26 launches with Search Lift measurement and new campaign controls, Search Engine Land, October 15, 2026
    11. Google Ads API Version 26 Now Out Available, Search Engine Roundtable, October 15, 2026

    Author: Stroe Media Editorial Team, Last updated: October 19, 2026

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