Google unveils new Verification Requirements for Financial Advertisers

Google yesterday announced new verification requirements for certain financial services advertisers in Ireland, New Zealand, South Korea and Thailand. The updated policy, set to take effect on November 7, 2024, aims to enhance transparency and consumer protection in online financial advertising.

The announcement, made on October 8, 2024, outlines a two-step verification process for affected advertisers. First, advertisers must obtain verification through G2, Google's external compliance partner. G2 will assess advertisers' licensing status and registration details. Second, verified advertisers must apply for financial services verification with Google as either "First Party" or "Authorized Advertisers."

Key aspects of the new verification process

Scope and Timeline

The policy affects advertisers promoting financial services in Ireland, New Zealand, South Korea, and Thailand. Enforcement begins on November 7, 2024. Advertisers who fail to complete verification by this date will be unable to show financial services ads in these locations.

Verification Categories

Financial services potentially subject to verification include:

• Banking
• Credit cards
• Credit and loans
• Investment
• Brokerages & day trading
• Bonds, commodities & futures trading
• Insurance

G2 will start processing verification applications on October 8, 2024, giving advertisers one month to complete the process before enforcement begins.

Verification process details

Advertisers must demonstrate direct authorization from relevant financial services regulators or prove exemption from such requirements. Upon G2 verification, advertisers receive a unique verification code to apply for Google's financial services verification.

Third-party advertisers

Advertisers promoting financial services with approval from a First Party or Authorized Advertiser, but lacking direct regulatory authorization, cannot apply for verification independently. Instead, a First Party or Authorized Advertiser must apply on their behalf.

Agency requirements

Agencies and other entities managing advertising campaigns for affected advertisers must also obtain verification.

Impact on existing advertisers

Google will notify affected advertisers via email or in-account notifications about the need to complete the verification process. This approach ensures existing advertisers are aware of the new requirements and can take necessary action.

Regulatory context

The introduction of these verification requirements aligns with growing global efforts to regulate online financial advertising. Regulators in many countries have expressed concerns about misleading or fraudulent financial ads, particularly in the digital space.

Google's move to implement stricter verification processes in these four countries may indicate a broader trend towards increased scrutiny of financial services advertising across its global platform. The company has not yet announced plans to extend these specific requirements to other markets.

Industry implications

The new policy is likely to have significant implications for the financial services advertising landscape in the affected countries:

1. Increased barriers to entry for new advertisers in the financial sector
2. Potential reduction in the number of financial services ads from unverified sources
3. Higher compliance costs for financial services advertisers
4. Possible improvement in consumer trust in online financial advertising

Advertiser preparations

Financial services advertisers in the affected countries should take the following steps:

1. Review their current regulatory status and gather necessary documentation
2. Prepare for the G2 verification process, which begins October 8, 2024
3. Plan for potential disruptions to ad campaigns if verification is not completed by November 7, 2024
4. Consider alternative advertising strategies if unable to meet verification requirements

Key Facts

• Policy announcement date: October 8, 2024
• Enforcement date: November 7, 2024
• Affected countries: Ireland, New Zealand, South Korea, Thailand
• Verification partner: G2
• Verification application start date: October 8, 2024
• Services potentially subject to verification: Banking, credit cards, loans, investments, insurance
• Required verifications: G2 compliance check, Google financial services verification
• Advertiser categories: First Party, Authorized Advertisers, Approved Third Party Advertisers