Should my CPA or ROAS target match my actual performance?

Yes — your targets should state the performance you actually require, because Smart Bidding treats them as instructions, not aspirations. A campaign beating its target isn't a bonus to admire; it's a misconfigured instruction waiting to be taken literally.

Google's 2026 Smart Bidding changes made this explicit: budget-limited campaigns that historically overdelivered now optimize to the stated target. If a campaign needs the 600% ROAS it's been delivering, a 400% target is an invitation to give the difference back — raise it. Same logic in reverse for CPA: if $35 is what your economics require, don't leave the target at $50.

Make target review a standing habit tied to your real margins and capacity, not a set-once field — it's one of the few free levers in the account.