Google launches cannabis advertising pilot program in Canada

Google announced on August 20, 2025, the launch of a limited pilot program permitting specific cannabis-related product advertising in Canada. The pilot program represents the first time Google has allowed cannabis advertising on its platform, marking a significant shift in the company's advertising policies for controlled substances.

According to the updated Cannabis-Related Content Policy document, "Google Ads is launching a limited pilot program in Canada for specific, legally allowed cannabis-related product types or services." The pilot will operate exclusively on Google Search for a maximum duration of 20 weeks, beginning August 25, 2025.

The program restricts participation to federally licensed operators in Canada, aligning with the country's regulatory framework established under the Cannabis Act. Only entities holding valid federal licenses for cannabis production, sale, or distribution will be eligible to participate in the advertising pilot.

The pilot program's scope remains deliberately narrow. Cannabis product advertisements will be available solely on Search, excluding other Google properties such as YouTube, Display Network, or Shopping platforms. This limitation suggests Google is taking a cautious approach to testing user response and advertiser compliance within a controlled environment.

Google's announcement indicates the pilot's primary purpose is "to explore user interest and inform potential future policy updates." This research-focused approach suggests the company is evaluating whether to expand cannabis advertising beyond the current restrictions.

The policy update addresses user control mechanisms for cannabis advertising exposure. Users who encounter cannabis advertisements but prefer not to see them will have access to opt-out options through My Ad Center. This feature allows users to manage their advertising preferences and exclude specific content categories from their search experience.

Canada's cannabis advertising landscape operates under strict federal regulations outlined in the Cannabis Act and Cannabis Regulations. These regulations generally prohibit cannabis promotion except in limited circumstances, with extensive restrictions designed to protect public health and prevent youth access to cannabis-related content.

According to Canadian federal documentation, "The Act generally prohibits the promotion of cannabis, cannabis accessories and services related to cannabis, except in limited circumstances." The regulations permit informational promotion and brand-preference promotion only under specific conditions, including age verification requirements and location restrictions.

The Cannabis Act defines promotion as making "a representation - other than a representation on a package or label - about the thing or service by any means, whether directly or indirectly, that is likely to influence and shape attitudes, beliefs and behaviours about the thing or service." This definition encompasses three key factors: purpose of selling, direct or indirect representation about cannabis, and likelihood to influence attitudes and behaviors.

Canadian regulations prohibit cannabis promotion that could appeal to young persons, use testimonials or endorsements, depict persons or characters, or associate cannabis with lifestyle imagery. The Act also restricts promotional activities in locations where young persons might have access and requires reasonable steps to prevent youth exposure to cannabis advertising.

The pilot program's timing coincides with Google's broader pattern of policy adjustments for controlled substances. PPC Land previously reported on Google's certification program for opioid painkiller discussions, demonstrating the company's approach to balancing public health concerns with advertising opportunities.

Google's healthcare and medicines policies have undergone multiple revisions in 2025. Recent updates to Australian healthcare advertising requirements established certification requirements for online pharmacies and telemedicine services, indicating Google's increased focus on regulated healthcare advertising.

The cannabis pilot represents a departure from Google's historically restrictive approach to controlled substance advertising. Previous policies prohibited cannabis advertising entirely, placing it alongside other controlled substances such as recreational drugs and unauthorized pharmaceuticals.

Technical implementation details for the pilot program remain limited in the available documentation. Google has not specified whether participating advertisers will require special certification beyond federal licensing, or what approval processes will govern cannabis advertisement review.

The 20-week duration provides Google with approximately five months of data collection on user interactions, advertiser compliance, and potential policy enforcement challenges. This timeframe aligns with Google's typical pilot program durations for testing new advertising categories.

Industry implications extend beyond cannabis advertisers to include adjacent businesses such as accessories manufacturers, testing laboratories, and consulting services. The pilot's outcome could influence policy decisions for these related categories currently subject to cannabis advertising restrictions.

Legal compliance requirements for pilot participants remain anchored in existing Canadian federal and provincial legislation. Advertisers must maintain compliance with Cannabis Act promotion restrictions, including prohibitions on youth-appealing content, lifestyle associations, and unauthorized health claims.

Provincial variations in cannabis retail regulations may create additional complexity for pilot participants. While federal licensing provides baseline eligibility, provincial and territorial authorities maintain jurisdiction over retail operations and may impose additional advertising restrictions.

The pilot's Search-only limitation reflects Google's risk management approach to cannabis advertising. Search advertising typically provides more precise targeting capabilities compared to display advertising, potentially enabling better compliance with youth protection requirements.

Enforcement mechanisms for pilot violations will likely follow Google's standard advertising policy procedures, though the company has not specified whether cannabis violations will receive standard warning periods or immediate suspension treatment. Recent policy updates for child protection content have established immediate suspension precedents for high-risk categories.

The Canadian cannabis advertising market has operated primarily through specialized advertising networks and direct marketing channels due to major platform restrictions. Google's pilot could significantly expand reach opportunities for licensed operators while maintaining compliance with federal promotion restrictions.

Data collection during the pilot will likely focus on user engagement metrics, advertiser compliance rates, and potential youth exposure incidents. This information will inform Google's assessment of whether to expand, modify, or terminate cannabis advertising permissions.

International implications of the pilot extend to other jurisdictions with legal cannabis frameworks. Countries including Germany, Netherlands, and several U.S. states maintain regulated cannabis markets that could benefit from similar advertising opportunities if the Canadian pilot demonstrates successful compliance management.

The timing of Google's announcement, five days before pilot launch, provides minimal preparation time for potential participants. This compressed timeline suggests Google may have pre-qualified a limited number of advertisers or intends to operate with a very small initial participant pool.

Cannabis industry stakeholders have long advocated for access to mainstream advertising platforms, citing competitive disadvantages compared to alcohol and pharmaceutical advertising. The pilot represents the first major platform accommodation of these concerns while maintaining strict regulatory compliance requirements.

Timeline

• August 20, 2025: Google announces cannabis advertising pilot program for Canada
• August 25, 2025: Cannabis advertising pilot program begins on Google Search
• August 19, 2025: Google strengthens child protection policy with immediate suspension enforcement
• January 26, 2025: Google tightens advertising rules to protect minors across platforms
• October 12, 2024: Google Ads announces 11-year data retention policy
• August 12, 2024: Google releases video guide on government document advertising policy
• August 4, 2024: Google updates sexual content policy to allow pubic hair grooming ads
• June 13, 2024: Google updates advertising policy to address opioid painkillers
• April 28, 2024: Google updates healthcare and medicines policy for Australian advertisers
• January 29, 2023: MNI Targeted Media launches CannabX cannabis ad exchange

PPC Land explains

Cannabis: A controlled plant substance that became legal for recreational use in Canada in 2018 under federal legislation. The term encompasses various products including dried flower, edibles, extracts, and topicals that contain cannabinoids such as THC and CBD. Cannabis remains subject to extensive federal and provincial regulations governing production, distribution, marketing, and consumption. The substance's legal status varies significantly across international jurisdictions, with some countries maintaining complete prohibition while others have established regulated markets for medical or recreational use.

Pilot Program: A limited-scale testing initiative designed to evaluate feasibility, compliance, and user response before full implementation. Google's cannabis advertising pilot represents a controlled experiment allowing the company to assess advertiser behavior, user engagement, and regulatory compliance within defined parameters. Pilot programs typically include specific duration limits, participant restrictions, and evaluation criteria that inform decisions about broader policy changes. The 20-week timeframe provides sufficient data collection opportunity while maintaining manageable risk exposure for platform operator and regulatory authorities.

Federally Licensed Operators: Businesses that have obtained official authorization from Health Canada to engage in cannabis-related activities under the Cannabis Act. These licenses encompass various categories including cultivation, processing, testing, research, and retail operations. Federal licensing requires extensive compliance with security, quality control, record-keeping, and reporting requirements. Licensed operators must demonstrate ongoing compliance with federal regulations and may face license suspension or revocation for violations. The licensing system ensures only legitimate businesses participate in Canada's legal cannabis market.

Search Advertising: Digital advertising format where promotional content appears alongside search engine results based on user queries. Search ads typically feature text-based formats with headlines, descriptions, and destination URLs. This advertising method provides precise targeting capabilities based on search intent and keyword relevance. Search advertising generally offers better conversion rates compared to display advertising because users actively seek information about specific products or services. The format allows advertisers to reach potential customers at the moment they express interest in relevant topics.

Cannabis Act: Federal legislation enacted in 2018 that legalized and regulates cannabis in Canada. The Act establishes comprehensive framework for production, distribution, sale, and possession of cannabis while maintaining criminal penalties for illegal activities. Key provisions include age restrictions, possession limits, advertising prohibitions, and penalties for non-compliance. The legislation prioritizes public health and safety, particularly youth protection, while enabling legal access for adults. Provincial governments maintain authority to implement additional restrictions within the federal framework.

Policy Updates: Systematic revisions to advertising platform rules and regulations that reflect changing legal landscapes, industry developments, and business priorities. Google regularly updates its advertising policies to address emerging risks, comply with regulatory requirements, and accommodate legitimate business needs. Policy updates typically include implementation timelines, compliance requirements, and enforcement mechanisms. These changes often affect multiple stakeholder groups including advertisers, publishers, and platform users. Documentation and communication of policy updates ensures transparency and enables stakeholder preparation for compliance requirements.

Youth Protection: Regulatory priority focused on preventing minors from accessing cannabis advertising, products, and related promotional content. Protection measures include age verification requirements, content restrictions, location limitations, and advertising format constraints. Canadian cannabis regulations specifically prohibit promotional activities that could appeal to young persons or be accessible in youth-frequented locations. Digital platforms must implement technical controls to restrict youth exposure to cannabis advertising. Violations of youth protection requirements typically result in severe penalties including license revocation and platform suspension.

Compliance: Adherence to legal requirements, platform policies, and regulatory standards governing cannabis advertising and business operations. Compliance encompasses multiple dimensions including content restrictions, targeting limitations, disclosure requirements, and record-keeping obligations. Licensed operators must maintain ongoing compliance with federal and provincial regulations while meeting platform-specific policy requirements. Non-compliance can result in penalties ranging from advertising disapproval to criminal prosecution. Effective compliance programs require continuous monitoring of regulatory changes and policy updates.

Promotion Restrictions: Limitations on cannabis marketing activities designed to prevent youth exposure, health claims, and lifestyle associations. Canadian regulations prohibit testimonials, endorsements, celebrity associations, and content that could appeal to young persons. Promotional restrictions also limit cannabis advertising to specific locations and communication methods. Health and cosmetic benefit claims are strictly prohibited except under specific medical cannabis frameworks. These restrictions aim to normalize cannabis as a regulated product while preventing overconsumption and youth initiation.

Regulatory Framework: Comprehensive system of laws, regulations, and enforcement mechanisms governing cannabis industry operations. Canada's framework includes federal legislation, provincial regulations, municipal bylaws, and platform policies that collectively define permissible activities. The framework addresses production standards, product safety, marketing restrictions, taxation, and enforcement procedures. International frameworks vary significantly, with some jurisdictions maintaining prohibition while others establish regulated markets. Effective frameworks balance public health protection with legitimate business interests and individual rights.

Summary

Who: Google, federally licensed cannabis operators in Canada, and Canadian cannabis consumers who may encounter advertisements through Google Search.

What: Google launched a limited pilot program allowing specific cannabis-related product advertising exclusively on Google Search. The program permits federally licensed operators to advertise cannabis products for the first time on Google's platform.

When: The pilot program was announced on August 20, 2025, and began operation on August 25, 2025, for a maximum duration of 20 weeks.

Where: The pilot operates exclusively in Canada on Google Search, restricting participation to federally licensed operators and excluding other Google properties such as YouTube and Display Network.

Why: Google initiated the pilot "to explore user interest and inform potential future policy updates" regarding cannabis advertising, representing the company's first accommodation of cannabis industry requests for mainstream platform access while maintaining strict regulatory compliance requirements.