Google to accept PPC advertising from Swedish operators but not affiliates
Non state-owned operators will have access to Google’s paid search advertising platform for the first time from 29 April
Google will allow paid search advertising from gaming operators in Sweden from the end of April, but will block affiliates from the same privileges, the search giant has said.
In an update to advertising partners, Google said it will allow licensed gambling operators to advertise through the Google Ads platforms (Google Display Network, Search Network and YouTube) for the first time from 29 April.
Operators will need to obtain a Google gambling certificate which will take approximately 2-4 days form the April launch, according to the tech firm.
Prior to the change, Google only accepted PPC advertising from state-owned operators Svenska Spel and ATG.
However, Google confirmed the change applies to operators only, and affiliates will be banned from utilising the same platform.
Google’s gambling industry head Chris Harrison told EGR the decision was made because some affiliates were not stringent enough about directing customers to regulated sites.
Unregulated and black hat PPC has historically been quite prominent in Sweden.
Search engine consultant Pontus Karlsson, who first highlighted the change, said the new rules would hurt smaller operators who relied on affiliates, as well as the affiliates themselves.
However, Stockholm-listed affiliate Raketech said in a statement the change was not expected to have a significant impact on its revenue.
The firm said its business was built on organic search and it did not use PPC advertising or paid media for gambling in Sweden.
Raketech CEO Michael Holmberg said: “We believe it is positive that Google addresses the Swedish market as such. Our view is that hopefully, the decision to allow licensed operators to advertise will mean that unserious affiliate companies that previously advertised in an unregulated manner will now disappear.
“We also hope that in the future Google will allow PPC for affiliates, as it does in other regulated markets. By not being active in gaming PPC for Sweden in the past, this decision has no impact on Raketech, and I am convinced that our comparison products will play an important role in the Swedish gambling market into the future.”
Catena Media said it was in a quiet period before its Q1 report and declined to comment.
Redeye analyst Kristoffer Lindstrom said the news was a slight positive for operators as they could divert some affiliate spend to paid search, but said the upside was limited as the PPC prices would quickly find “some kind of equilibrium where ROI is slightly positive for some”.