New financial service advertising regulations from Google in the UK means that your company’s Pay Per Click strategy could be in jeopardy.
You must now be verified by the search engine in order to advertise any type of financial product to UK users. Failure to do so may result in account suspension, though Google has stressed that this will only happen after a warning has been sent. so what does this mean for your search engine marketing?
The move comes following requests for the search engine to be more aggressive in its response to adverts linked to scams. According to Action Fraud, scams cost the UK £1.7 billion last year, with cyber-enabled fraud accounting for 85 percent of all fraud. It comes after the Financial Conduct Authority (FCA) took a number of steps to make a bigger impact in the digital space, including banning cryptocurrency exchange Binance from advertising in the UK.
What method do you use to obtain verification?
You’ll need to show that the products and services you’re supplying have been validated by the Financial Conduct Authority (FCA) or that you qualify for one of the FCA’s exemptions to get this crucial certification.
What do you need to know about new financial service advertising regulations from Google?
It’s done by submitting the following information to Google:
Customer ID for Google Ads
Authorized Representative’s Name who is requesting verification
Details about your company (name, address, email address)
Your domain(s) or website(s) registered with the UK Financial Conduct Authority, as well as any other domain(s) or website(s) used for Google Ads advertising but not registered with the UK FCA.
FCA registration number in the United Kingdom (FRN)
Warranty that you will comply with all legal and regulatory duties relating to the communication, approval, and restrictions on financial promotions.
Exemptions are defined as “advertisers who do not promote financial services but have a compelling justification to target users who appear to be seeking financial services,” according to Google. If you fall into this category and are exempt, you’ll still require verification from an approved FCA organisation, which must submit the following information using the same form as above.
Customer ID for Google Ads
Authorized Representative’s Name who is requesting verification
Details about your company (name, address, email address)
You have approved the domains or websites of third-party financial services marketers whose advertising you have approved.
Assure that the financial promotions done by the third party are acceptable to you.
When does the law take effect?
Changes will take effect from September 2021, although we recommend that you plan ahead of time. If you’re regulated by the FCA, giving Google with the essential information shouldn’t be too difficult, but you’ll want to make sure they get it long before the regulations go into effect.
It’s critical to complete the verification as soon as possible if you’re relying on a partner to do so. You’ll need to make sure that someone is willing to verify your business on your behalf, and that you have enough time to look for alternatives if they don’t agree.
What effect will this have on advertising?
If your company sells financial services, you’ll need to plan ahead of time and acquire the verification before the deadline. Any time spent without being able to advertise on Google could be extremely detrimental to your organisation, not just reducing earnings but also offering your competitors a competitive advantage.
It also creates a higher barrier to entry for new enterprises, which can be beneficial or detrimental depending on your present market position. It’s likely that Google will strictly enforce this, so if you’re thinking about getting into Google advertising for financial services in the future, this will be an important factor to consider.
Our view is that these changes are likely to be positive to businesses. Adverts delivered to users will be of higher quality if only FCA-regulated providers are allowed to promote. You’ll probably lose a lot less business to unlawful frauds, which will benefit not only the typical customer, but also the industry that serves them lawfully and ethically.
Book a conversation with us today to explore how this affects your business or your overall PPC strategy.
If you need support and want to find out more about our digital marketing services – contact us for a free consultation wit a member of our team.
