Google Ads has increased the performance-based cost adjustment period for Demand Gen campaigns from three weeks to 60 days. This change allows a longer timeframe for campaigns to adjust costs when conversion performance falls short of expectations.
Google’s updated documentation confirms that cost adjustments can now be active for up to 60 days. This extension aims to align campaign results more closely with advertisers’ target CPA or ROAS by retrospectively lowering costs when needed.

Advertisers using tCPA or tROAS bidding within Demand Gen campaigns should note that these adjustments activate automatically within five days of a campaign’s launch. Eligibility is restricted and not all campaigns will qualify, depending on factors like account history and bidding practices.
Reporting reflects these adjustments, though they can take up to five days to appear after the campaign starts. There are no separate line items indicating when an adjustment has occurred.
Read the official help page here: About performance-based cost adjustment for Demand Gen Target CPA and Target ROAS campaigns (Beta).
This update was shared by Anu Adegbola.