Google To Curb Microtargeting In Consumer Finance Ads

Google is updating its policy limiting personalized advertising to include more restrictions on ads related to consumer financial products and services.

Google’s personalized ads policy prohibits targeting users based on sensitive categories like race, religion, or sexual orientation.

Over the years, Google has continued updating the policy to introduce new limitations. The latest update to restrict consumer finance ads is part of Google’s ongoing efforts to refine its ad targeting practices.

What’s Changing?

Google will update its personalized ads policy in February 2024 to prevent advertisers from targeting audiences for credit and banking ads based on sensitive factors like gender, age, parental status, marital status, or zip code.

Google’s current policy prohibiting “Credit in personalized ads” will be renamed “Consumer finance in personalized ads” under the changes.

Google’s new policy will state:

“In the United States and Canada, the following sensitive interest categories cannot be targeted to audiences based on gender, age, parental status, marital status, or ZIP code.

Offers relating to credit or products or services related to credit lending, banking products and services, or certain financial planning and management services.”

Google provided examples, including “credit cards and loans including home loans, car loans, appliance loans, short-term loans,” as well as “banking and checking accounts” and “debt management products.”

When Does The New Policy Take Effect?

The updated limitations on personalized advertising will take effect on February 28, 2024, with full enforcement expected within six weeks.

Google said advertisers in violation will receive a warning at least seven days before any account suspension.

According to Google, the policy change aims to protect users’ privacy better and prevent discrimination in financial services advertising.

However, the company will still allow generalized ads for credit and banking products that do not use sensitive personal data for targeting.

What Do Advertisers Need To Do?

Google will begin enforcing the updated restrictions in late February 2024 but advises advertisers to review their campaigns for compliance issues sooner.

Advertisers should carefully check their ad targeting settings, remove improper personalization based on sensitive categories, and adhere to the revised policy requirements.

Failure to follow the rules could lead to account suspension after an initial warning. Google will work with advertisers to ensure a smooth transition during the ramp-up period over the next six months.

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