Google Adwords is one of the most popular advertising outlets for companies who are trying to reach new customers online through Google search engine. Adwords are shown on top of the search results, as well on the right side of the page. According to Google, select keywords for your business, set a budget, and you’re ready to advertise.
According to the Washington Post, on May 11, 16, Google announced the ban of payday loans because advocates were having concerns of exploitation of the poor and vulnerable. Google is now taking a stand on payday loans ads from business who are advertising the quick cash loans for people who are in need of financial help. For those who are not aware payday loans are monetary loans provided to borrowers that must be paid in full, however the loans include high interest rates. Usually, the loans granted are typically small and are based on how much money the borrower grosses each pay period. The global ban of payday loans is now on the same list as illicit activities such as selling guns, explosives and drugs, and limited sexually explicit or graphic in nature.
There is a concern about banning the payday loans for the simple fact that people know what they are doing when searching for financial help. For example, the other industry that will be impacted will be the medical lending industry because the critical regulations from Google will alter the way loan will be handed out. Similar industries will have to switch to more of an organic marketing, like television, radio, word of mouth, and maybe social media to be found on Google search engine.
Also affected, the medical financing sector. Big to small companies will have to comply with Google’s new Adwords policy.
The payday loans are like any other product or services, however Google global product policy director David Graff says “We’ll continue to review the effectiveness of this policy, but our hope is that fewer people will be exposed to misleading or harmful products.” The change will not take place until July 13, 16, so consumer will be able to advertise their payday loans that will be appear like any other on top and right side of the Google search results.
According to sources, Google announced the upcoming changes in a direct email that will also change the medical loan advertising on the search engine. For example,
- Minimum and maximum period of repayment
- Maximum Annual Percentage Rate, which includes the interest rate plus fees and other cost for a year
- A representative example of the total cost of the loan, including all applicable fees
Also, advertisers won’t be allowed to promote personal loans with the following conditions:
- Contain all disclosures
- All personal loans with repayment in full within 60 days or a APR over 36% will be prohibited globally and in the US.
At Online Advantages, we’ve been specializing in Organic Search Marketing since day one. Having a combined marketing strategy of organic, paid, and social media is something that we preach about everyday. However, with paid search advertising becoming more expensive and trickier to manage, especially in the Medical Lending space, a second look at your organic search marketing efforts may be in order. Contact Online Advantages today!