Google Bans Payday Loans from PPC

If you ever use organic search to look for financial help, you may see results popping up for what we commonly refer to as payday loan companies. However, anyone paying close attention to the paid ad listings at the top and bottom of those pages would have recently seen such websites disappear entirely. That’s because Google has decided to put a blanket ban on these companies advertising on their massive pay-per-click network, which could be expected to have a huge impact on traffic to these sites.

After all, Google has been making its ads stand out from the organic results less and less. In the last few months it has taken away the distinctive yellow colour of the “Ad” labels, for example, which means they are sometimes almost indistinguishable from organic results. It is perhaps for reasons like this that misleading or predatory advertisements must be taken more seriously than ever, otherwise Google could be seen as complicit in encouraging search users to make poor financial decisions.

The morality of some of these companies may be debatable, but clearly Google is sending a message here about what kinds of business practices it is willing to be associated with. It has set certain standards to decide what is not permissible on its advertising network, including companies that offer interest rates in excess of 35% (for US advertisers) or require repayments within 60 days of borrowing money from them (applying to advertisers in any country worldwide). These characteristics are typical of so-called payday loan companies offering short term cash for people who are struggling to make ends meet between pay cheques.

The terms of use for AdWords have now been updated to ensure things like this will be used as reasons for disapproving ads on its system. Of course, many ads will still be running that advertise these kinds of companies and were previously approved. It is unknown how long Google will take to contact these advertisers and disapprove their ads according to the new policy changes, or if they have some kind of automated system to help them do so.