Google’s rules for advertising sms loans will change on July 13, 2016. No, this does not mean that Google will filter sms / fast loans from search results such as Expressen trying to make us believe, at least when you read Express’s headline “Fast loans are stopped “. The evening paper has taken its information from a second-hand source, Breakit, where you get a more accurate and informative headline “Google stops ads from sms loan companies”. Because that’s exactly what Google’s new guidelines mean, that they won’t allow ads from high-end companies under certain conditions.
Google has its own advertising system called Adwords that companies, individuals and organizations can buy into when they want to advertise a product. These ads appear, among other things, when using their search engine. The ads usually show up above and below the search results and show relevant advertisers when someone uses keywords associated with the advertiser’s products.
What do we think about this?
Now, as of July 13, Google will not allow advertising from credit companies that offer sms loans that have a payback period of 60 days or less. According to Google’s first-hand source (yes, we always look at the first-hand source if possible) it is due to the following: “This change is designed to protect our users from deceptive or harmful financial products” which in Swedish means that Google has made this change to protect its users against misleading and harmful financial products. Also, in the US, credit companies that offer fast loans with an effective interest rate above 36% will not be able to advertise in Adwords.
So what do we think at Good Finance about the new requirements for the Swedish credit companies, that the shortest repayment period must be at least 61 days in order to be visible with Adwords? It’s really nothing we care about, why should we have it? After all, it is Google who decides which ads they consider to be okay and which ones they consider not okay.
If they do not want to receive advertisements from fast-loan companies that have a shorter repayment period than 61 days then they have every right to do so.
There are some ad networks that think it’s okay to receive ads that have so-called adult toys and adult movies, while other networks don’t think it’s okay. It is not something we cannot or do not want to put in. It is something that the advertising company itself must decide, even when it comes to sms loans.
How will this affect the industry?
Here, we should speculate a bit on how we think Google’s new guidelines for its advertisers will affect the sms industry.
First, Google’s advertising rules will not affect search results. Credit companies that already appear on Google’s search engine will continue to do so, but those previously only seen in the AdWords ads above or below the results will no longer be visible if they do not meet Google’s new guidelines.
Secondly, those credit companies that offer sms loans with a maturity of 60 days or less (and have not advertised outside of Adwords) will have problems if they are far down in the search results.
They will no longer be visible and will have significantly fewer customers
But of course, this will not be accepted. They will probably make any or all of the following changes:
- They start collaborating with other advertising networks that make them appear on various websites on the web.
- They can start advertising on radio and TV with it being quite expensive. They can also contact large, well-visited and relevant websites and ask if they (without intermediaries) can place their ads on these websites and the like.
- They can put more energy into making a good, informative and user-friendly website that is appreciated by visitors and Google.
- They can arrange to ship maturities of 60 days or less and continue to advertise with Google as usual. Unfortunately, there are many customers who think that sms loans with over two months’ maturity are too expensive. At best, it might mean that these credit companies lower their lending rates for sms loans, let’s hope so, even if it is extremely doubtful.