Ads Updates

Demand Gen Cost Adjustments and Local Services Ads Changes

Two Google Ads changes from mid October 2026: Demand Gen cost adjustments now last up to 60 days, and Local Services Ads drop featured professionals. What each means and what to do.

By Saifur Saif, Google Ads & Meta Ads Specialist · 19 Oct 2026 · 4 min read

Short answer: Two Google Ads changes landed in mid October 2026. First, Demand Gen performance based cost adjustments can now apply for up to 60 days instead of three weeks. If a new Demand Gen campaign on Target CPA or Target ROAS converts worse than Google predicted, Google may lower what you pay for longer. Second, Local Services Ads will no longer show featured professionals, and headshots are now optional. Business photos and reviews stay the same.

Neither change needs urgent action, but both affect how you should read results. Here is what each one means.

1. Demand Gen cost adjustments now last up to 60 days

What cost adjustments are

Cost adjustments are a beta feature for Demand Gen campaigns using Target CPA or Target ROAS bidding. While a campaign is learning, if conversions come in below what Google’s system predicted, Google can automatically reduce the cost you pay so results land closer to your target. You do not need to set anything up, and Google decides when to apply them.

What changed

BeforeNow
Maximum adjustment window3 weeks60 days
Campaigns coveredDemand Gen with Target CPA or Target ROASSame
How you see itLower reported costSame, no separate credit line

What it means for you

  • More protection while learning. New Demand Gen campaigns often perform badly in the first weeks. A longer window can soften that.
  • It is not a guaranteed discount. Eligibility depends on things like account history, tracking quality, bidding and budget settings.
  • Adjustments are hard to spot. They show up as lower final costs in reporting, can take up to five days to appear, and come with no notification. Compare cost per conversion week by week.
  • Tracking still decides everything. If conversions are not measured properly, Google cannot judge performance. Start with my GA4 and GTM tracking guide.

If you are planning Demand Gen for the holiday season, also read Demand Gen Lookalikes become suggestions.

2. Local Services Ads drop featured professionals

What changed

Google is telling Local Services Ads advertisers that “starting in October, featured professionals will no longer show on your ads.” Headshots are now optional and, according to Google, will not affect whether your ads are served. Business photos and customer reviews are unchanged.

Who is affected

  • Law firms and other professional services that used individual staff profiles to stand out
  • Home service businesses that featured named technicians

What to do

  1. Strengthen your business photos. Real photos of your team, office, vehicles and work.
  2. Push for more reviews. With fewer ways to stand out, reviews carry even more weight.
  3. Keep your profile complete. Hours, service areas, job types and response times.
  4. Watch lead volume and cost per lead for a few weeks. Google has not said whether this change affects performance.

Local Services Ads are only available in some countries, including the US, UK, Canada and Australia, so this mostly matters for local businesses there.

Frequently asked questions

What are Demand Gen cost adjustments?
They are automatic cost reductions Google may apply to Demand Gen campaigns using Target CPA or Target ROAS when conversions come in below Google’s predictions during learning.
How long do Demand Gen cost adjustments last now?
Up to 60 days, up from three weeks, according to the October 2026 change.
How do I see Demand Gen cost adjustments?
They appear as lower costs in your normal reporting, can take up to five days to show, and have no separate credit line or notification.
Are featured professionals still shown in Local Services Ads?
No. Google says featured professionals no longer show on Local Services Ads from October 2026.
Do I need a headshot for Local Services Ads?
No. Headshots are now optional, and Google says they do not affect ad serving.
Who can manage my Demand Gen or Local Services Ads?
Saifur Saif is a Google Ads specialist in Bangladesh who manages Demand Gen, Search and Local Services Ads for businesses in the US, UK, Canada and Australia.

Need a Google Ads review?

I can check your Demand Gen setup, tracking and local campaigns. See my Google Ads management service, or request a free ads audit.

Sources

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