Google is reversing part of its sweeping ban on cryptocurrency-related advertising. Starting in October, the world’s largest ad network will allow regulated cryptocurrency exchanges to buy ads in the United States and Japan.
The news comes just a few months after Facebook reversed its own crypto ad ban. Back in June, Facebook reversed the advertising ban that had kept cryptocurrency-related ads off the social network since January.
Google’s original crypto ad ban was announced in March and rolled out in June. Clearly, the policy didn’t last long. Moving forward, regulated cryptocurrency exchanges from around the world will be able to purchase ads on Google’s network targeting users in the United States and Japan.
Google clarified its original stance on crypto ads, stating that it was intended to protect consumers. Google didn’t want to display ads for fraudulent ICOs, for example, and was having trouble separating legitimate blockchain investments from scams.
At various points over the last year, the world’s largest social networks and advertising giants have announced bans on crypto-related advertising to stop bad actors. Instead of targeting individual bad actors, however, these networks targeted the industry as a whole. Now, these same networks are slowly letting more legitimate companies re-enter the space.
“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” said Google’s Scott Spencer in an interview with CNBC when the original crypto ban was announced.
Let’s take a closer look at how Google’s updated crypto ad policy will work.
How Google’s New Ad Policy Works
Google’s updated advertising policy will apply to advertisers around the world. A regulated cryptocurrency exchange from anywhere in the world can now buy ads on Google’s network. The main restriction is that the ads can only run in the United States and Japan.
Furthermore, interested cryptocurrency exchanges will also need to apply for certification to serve ads in each country – Japan and the United States – individually.
Overall, Google’s new ad policy is similar to Facebook’s new ad policy. Facebook started allowing pre-approved cryptocurrency advertisers in June. Instead of allowing anyone to advertise crypto-related products and services on Facebook, the social network now requires a detailed verification process.
Google’s parent company, Alphabet, makes approximately 86% of its revenue from advertising. In the first half of 2018 alone, Alphabet earned $54 billion in ad revenue. Clearly, Google doesn’t want to ban all crypto ads from its platform and destroy a crucial source of revenue, but they also don’t want to expose consumers to scams – which would discourage them from clicking on Google advertisements in the future.
For now, this policy affects regulated cryptocurrency exchanges worldwide who wish to advertise in Japan and the United States. Other blockchain companies and crypto services will have to wait for further clarification on Google’s crypto ad ban.