Jason Simon details Google’s updated advertising for cryptocurrency and gambling

The global commercial scene is constantly in a state of flux, with some products and services being welcomed as other existing solutions fall out of favor. Google has a confident grip on much of what transpires on the Internet and has announced policy changes coming to its platforms that intrinsically impact the markets. Jason Simon, a cryptocurrency and eCommerce expert, explains how Google’s decision to allow cryptocurrency ads while banning gambling ads on YouTube speaks volumes about the company’s ambitions.

Google is going to update its advertising policy this August. It has finally decided to allow certain cryptocurrency wallets and exchanges to advertise with them beginning on August 3, provided that the platform is either registered with the Financial Crimes Enforcement Network (FinCEN) or a federal or state-chartered bank entity. The new policy, announced earlier this month, will apply globally to Google search and all of its sites, including YouTube, Gmail or Blogger.

The cryptocurrency policy update comes three years after Alphabet, Google’s parent company, banned all advertising related to cryptocurrency. That ban was short-lived, however, as the company softened its position five months later. In September 2018, it began to allow certain regulated cryptocurrency exchanges, including Coinbase, to advertise in the US and Japan. As it now is softening its position once again, Google isn’t completely embracing the cryptocurrency ecosystem and will still ban ads for initial coin offerings, decentralized finance (DeFi) trading protocols and promotions of specific cryptocurrencies.

“This reversal could have strong implications for Google’s revenue,” explains Simon. “As public interest in cryptocurrency continues to rise, Google stands to benefit financially from advertising sales, which account for 80% of Alphabet’s total revenue. So far, advertising sales have given the company $147 billion in revenue.”

In another update, provided a couple of days ago, Google said that YouTube will no longer support gambling, alcohol, prescription drug or political ads on its masthead ad slot, the first advertising slot any user sees when visiting the YouTube homepage. Explains Simon, “Google has decided to make this change in order to try to appear more neutral and avoid sensitive subjects and avoid regulator scrutiny. It isn’t clear how effective the change will be, nor have any indications been given regarding how much money the platform might potentially lose in advertising sales.”