Google Ads Channel Prioritization and Budget Allocation
The new controls for search partners, the Display Network and Performance Max channels, with starting settings and the February 2027 deadline.
Key Takeaways
- Google Ads channel prioritization lets you mark channels such as search partners or the Display Network as High or Low priority inside a campaign.
- Low priority channels can also get a budget allocation that caps their share of the daily budget on a best-effort basis, with 0% stopping their spend.
- Search campaigns with Display Expansion move to this system automatically in February 2027, so review them now.
- For most local lead generation, keep Google Search at High and give the Display Network little or no budget.
On This Page
Google Ads channel prioritization lets you mark each channel inside a campaign as High or Low priority, so Google spends on the channels you value first, and budget allocation lets you cap or switch off the Low priority ones. Google announced both on October 14, 2026 and started rolling them out on October 15 for Search, Shopping, Performance Max and Demand Gen. Your first job is to find every Search campaign with the Display Network turned on and decide what Display should get, because Google moves those campaigns to the new system automatically in February 2027.
Priority Levels and Budget Allocation
Every channel starts at High priority. Google spends on High priority channels first and aims to give a Low priority channel budget only after the High priority channels are funded. For a Low priority channel you can also set a budget allocation, a percentage of the campaign's average daily budget that works as a best-effort cap. An allocation of 0% stops spend on that channel.
According to Google's help page, you can set priorities at the account level, on a shared budget or on a single campaign. The controls are in Google Ads and Search Ads 360. Google Ads Editor and the API will support them later, and you can't set them from a manager account.
Channels You Can Prioritize by Campaign Type
| Campaign type | Channels you can prioritize | Budget allocation |
|---|---|---|
| Search | Google Search, search partners and the Google Display Network | Yes |
| Shopping | Google Search and search partners | Yes |
| Performance Max | Google channels, search partners and the Google Display Network | Yes |
| Demand Gen | Google channels and the Google Display Network | No, priority only |
In Performance Max and Demand Gen, Google groups its own surfaces, such as Search, YouTube, Maps, Gmail and Discover, into one unit called Google channels. You can't prioritize YouTube over Search inside a Performance Max campaign, but you can push search partners and the Display Network down.
A Worked Budget Example
Say you run a $100 a day Search campaign for a roofing company with search partners and the Display Network both turned on. You keep Google Search at High, set search partners to Low with a 15% allocation and set the Display Network to Low with a 5% allocation.
| Channel | Priority | Allocation | Most it should spend in a day |
|---|---|---|---|
| Google Search | High | None | Up to the full $100 |
| Search partners | Low | 15% | About $15 |
| Google Display Network | Low | 5% | About $5 |
On a day when Google Search can use $92 of the budget, at most $8 is left for the 2 Low priority channels, and each stays under its own cap. On a slow day when Google Search only spends $70, search partners can take up to about $15 and Display up to about $5. The caps are best-effort and work on the average daily budget, so individual days can run a little over.
Bidding changes the picture. Google says that with Target CPA or Target ROAS, priorities generally don't change how spend is split when the campaign isn't limited by budget. In those campaigns the allocation percentage does the real work, so set one for every Low priority channel you want to keep small.
The February 2027 Display Expansion Change
In February 2027, Search campaigns with Display Expansion turned on move to channel prioritization and budget allocation automatically, and Google removes the current spend setup. Spend may shift between Google Search, search partners and the Display Network when that happens.
Google's suggested setting for keeping today's behavior is the Display Network at Low priority with a 50% allocation. Before you copy that, look at what Display has been doing for you. Allowing half the budget to go to Display is a lot for a campaign meant to catch people searching for your service.
There are 2 more rules to know. From February 2027, the Display Network stops serving on Search campaigns that use Target Impression Share. And if you set priorities before February 2027, your settings take effect right away and replace the old Display Expansion budget behavior, so you control the timing.
Channel Prioritization Settings for Lead Generation
These are starting points to test. Judge each change on cost per qualified lead over at least 4 weeks.
| Campaign | Starting setup | Reason |
|---|---|---|
| Local service Search campaign | Google Search High, search partners Low at 0% to 20%, Display Network Low at 0% | Search intent is what you're paying for, and partner and Display leads are often weaker |
| Search campaign that relies on Display for reach | Display Network Low at a small allocation such as 10% | Keeps some reach while protecting search budget |
| Performance Max for leads | Google channels High, search partners and Display Low with allocations based on the channel performance report | Moves spend toward the channels that produce real leads |
| Demand Gen | Set priorities only | Budget allocation isn't available for Demand Gen |
If you want Display for remarketing, run it in its own campaign with its own budget. Our guide to Google Ads for small businesses explains why a new Search campaign usually starts with Display off, and our Performance Max lead generation article covers reading the channel report.
Checking Results by Channel
In a Search campaign, segment the campaign report by network to see Google Search, search partners and Display side by side. In Performance Max, use the channel performance report. Compare 4 weeks before a change with 4 weeks after it, judged on cost per qualified lead.
Form fills alone can make a weak channel look good. If you import offline conversions or use enhanced conversions for leads, you can see which channel's leads turned into customers, which is the number that should decide each allocation. Our Google Ads management team runs this channel review for every account we take on.
Checklist Before February 2027
- List every Search campaign with Display Expansion or the Display Network turned on
- Pull 90 days of results segmented by network for each one
- Decide a priority and allocation for search partners and the Display Network in each campaign
- Move Display out of any Target Impression Share campaign that depends on it
- Set your priorities now so the change happens on your schedule
- Check spend by channel 2 weeks after each change
- Add a note in your reporting on the date you changed the settings
Our Google Ads updates tracker will add the rollout dates for Google Ads Editor and API support when Google announces them.
Frequently Asked Questions
Do I have to use channel prioritization in Google Ads?
It's optional for most campaigns. The exception is Search campaigns with Display Expansion, which Google moves to the new system automatically in February 2027.
Does a 0% budget allocation turn off a channel?
Google says a 0% allocation stops spend on that channel. Allocations are best-effort, so check the channel breakdown after you make the change.
Can I set channel priorities in Google Ads Editor?
Not yet. Google says Editor and API support is coming later. For now you set priorities in Google Ads or Search Ads 360, and not from a manager account.
Why can't I set a budget allocation for Demand Gen?
Google supports priority levels for Demand Gen channels but not budget allocation. You can mark the Display Network as Low priority in a Demand Gen campaign, but you can't cap it with a percentage.
Will Low priority channels still spend money?
Yes, once High priority channels are funded and budget is left over, up to any allocation you set. Set the allocation to 0% if you want a channel to stop spending.
Sources
- Guide your campaign spending with new priority and allocation features, Google Ads and Commerce Blog (October 14, 2026) blog.google
- About channel prioritization and budget allocation, Google Ads Help support.google.com
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