What’s changed
Google Ads now lets advertisers tell Google which places their ads should show first, so your budget goes to the channels that bring in real buyers before anything else. Google announced the two new controls, channel prioritisation and budget allocation, on 14 October 2026, and they are rolling out to all accounts over the coming months.
Until now, most channel settings were all-or-nothing: a channel was either switched on or switched off. Google’s own headline for the update was “Say goodbye to all-or-nothing channel targeting.” For a dealership, that means more control over where your money goes, without losing reach.
How it works, in plain English
Think of your daily budget as a tank of fuel. Channel priority decides which engines get fuelled first.
- High priority: these channels get paid for first. Google spends here before anything else.
- Low priority: these channels only get what is left over once the high-priority ones are covered.
- Budget allocation: for any low-priority channel, you can set a maximum share of your daily budget it is allowed to use, for example 20%. Google treats this as a strong guide rather than an exact limit.
The “channels” are the different places your ads can appear. Depending on the campaign type, these are:
| Campaign type | Channels you can prioritise |
|---|---|
| Search | Google Search, Search partners (other sites using Google search), Display Network (banner ads on websites) |
| Shopping | Google Search, Search partners |
| Performance Max | “Google channels” (Search, YouTube, Maps, Gmail and Discover as one group), Search partners, Display Network |
| Demand Gen | “Google channels”, Display Network |
By default, every channel starts as high priority, so nothing changes until a setting is adjusted.
Why it matters for your dealership
Not every channel brings in buyers at the same rate. Someone searching “used Audi A3 near me” on Google is usually much closer to picking up the phone than someone who scrolls past a banner ad on a news site.
Channel priority lets us make sure your budget backs that difference:
- More money behind your best leads. Google Search, where people are actively looking for a car, can be funded first, so it is less likely to run short on busy days.
- Test without the risk. Channels like Search partners or the Display Network no longer have to be fully on or fully off. We can keep them running with a capped share of budget and see if they deliver calls and enquiries.
- Less wasted spend. If a channel brings clicks but not calls, forms or showroom visits, we can limit how much it takes rather than let it eat into budget that would otherwise go to proven channels.
One honest caveat: priority makes the biggest difference when a campaign is limited by budget. If a campaign already has more budget than it can spend, the budget caps are the more useful lever.
How we’ll use it on your account
As the controls reach your account, we will review each campaign against the results that matter to you: phone calls, enquiry forms and showroom visits, which we already track.
- Keep your strongest channels on high priority. For most dealers that means Google Search and the main Google channels in Performance Max.
- Move weaker channels to low priority with a cap. Where Search partners or the Display Network bring few calls or enquiries, we will set them to low priority and limit their share of budget.
- Check the numbers, then adjust. We will compare calls and leads by channel over the following weeks and move priorities up or down based on what is working for your dealership.
You don’t need to do anything. If you would like us to favour a particular goal, such as more phone calls for a used-car push, just let us know.
What to expect
The main thing you may notice is a shift in where your budget is spent, with more going to the channels that bring in enquiries. Your overall budget stays the same.
There is also a Google change coming in February 2027. Today, Search campaigns that also show on the Display Network automatically favour Search. From February, Google is removing that automatic setting, which means Display could start taking a bigger share of spend if nothing is changed. We will set your accounts up so Search stays protected, so this won’t catch you out.
Google has also said more detailed reporting by channel for Search campaigns is expected in early 2027, which will make it easier to show you exactly where your leads come from.
Quick questions
Will this cost me more? No. It changes how your existing budget is split, not how much you spend.
Do I need to change anything? No. We manage the settings for you.
Will I lose reach? Not necessarily. Low-priority channels can keep running in the background with a capped budget, rather than being switched off.
When does it start? Google is rolling it out gradually over the coming months, so it may arrive in different accounts at different times.
If you have any questions about how this affects your campaigns, get in touch with your account manager.
Sources
- Guide your campaign spending with new priority and allocation features, Google, 14 October 2026
- Google Ads Channel Priority And Budget Allocation, Surfside PPC