Part of the success behind Google most successful program, Google AdWords, is the strict rules it implements to make sure only the best adverts are displayed for web users. For example, Google illustrated that they removed 780 million adverts alone for one reason or another last year – they did not comply with the rules set out by Google as to what an advertiser can advertise with Google AdWords and what they cannot. With this in mind, Google has recently published an article which highlighted that they have updated the rules and regulations of what can be advertised with AdWords. Payday loans are the new category to be blacklisted from the PPC advertising program.
 
To quote the article by Google:

we’re banning ads for payday loans and some related products from our ads systems. We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., we are also banning ads for loans with an APR of 36% or higher.

So, to sum up, Google have decided to ban all adverts which relate to payday loans or are promoting loans with repayments that have an APR interest of 36% or higher.
 

The Analysis

This is clearly a step by Google morally. Above everything, Google wants to make the adverts benefit peoples’ lives. They must feel that a loan with an APR of 36% and higher does not do this and instead put people into a potentially difficult financial situation.
So Google did this morally. But, at the same time, it is quite immoral and contradictory for them to do such a thing.
For example, Google still allows gambling websites to bid in PPC. You only have to look at the competition for gambling results in Google such as Titanbet, bet365 or Coral to realise that there is a lot of money to be made from gambling in PPC. However, Google will not morally ban gambling from PPC? Surely gambling has more potential to ruin peoples’ lives than a payday loan?
As well as this, it is going to hurt the competition for payday loans. PPC is the number one way many payday loans advertise themselves. For companies in this sector that have already established themselves with a recognisable brand name, such as QuickQuid, Sunny and Wonga, they will be very happy that Google are preventing emerging new competitors from gaining extra publicity through PPC.
Therefore, is it moral for Google to completely change a market and make it hard for new companies to enter into it? PPC is a way for new companies to enter into markets since the advertising budget can be flexible due to the way AdWords and PPC is structured.
 
I can completely understand why Google has banned this sector from PPC advertising. However, if they are going to ban this, they need to seriously think about banning other sectors from PPC too. Otherwise, it seems very biased for them to ban payday loans but nothing else which could question moral in PPC.