Google opens search engine to gambling ads
- Added:
- Oct 20, 2008
Google has dropped its ban on allowing gambling sites to run sponsored links on its search results.
The search giant introduced a worldwide ban on gambling adverts on its AdWords sites in 2004, but has now opened up the market for its UK website.
The move comes after television advertising restrictions on bookmakers, casinos and online gambling sites were lifted by the Government last year.
Sponsored links to gambling sites will now appear in search results for specific words related to betting.
The move is expected to presage an online gold rush as bidders hurry to tap into a potentially lucrative new sales vertical.
In addition to opening up a new keywords bidding war, the move could also have a substantial impact on Yahoo.
The search engine has until now profited from the PPC revenue from gambling advertisers barred from using Google, but with the field now open stands to lose a considerable chunk of its turnover.
Lyndsay Menzies, Managing Director of search marketing agency bigmouthmedia UK, said: “This is another sudden change that has taken most of the sector by surprise. It will certainly lead to a big switch in the way that advertisers and agencies manage search campaigns for gambling sector clients and opens up a potentially lucrative new vertical for the industry.
"While many will welcome the addition of a new and highly competitive advertising platform for gambling advertisers, it remains to be seen what impact the move will have on other services. Competition is good for business, and it would be a great shame if this were to further weaken Yahoo’s hold on the market.”
When it first introduced the ban 16 months ago, Google was heavily criticised by gaming and gambling companies for not providing them with evidence that its users wanted the ban.
The company, which claims that the change has been under review for some time, says that it consulted the Gambling Commission prior to changing its policy.
Duncan Parry, chief solutions officer at marketing agency Steak Group, added: “We see this as a positive move by Google; we welcome local decision-making like this that means advertisers can serve consumer demand they know exists. You only have to look at Google Trends for gambling keywords to know how much UK consumers want to gamble online and are using search engines to find gambling sites – even if there aren’t paid search gambling ads on Google*.
“It will be interesting to see how the eco-system of gambling brands, guide sites, affiliates and other channels that feed customers through to websites is affected – will the affiliate channel shrink as brands switch budgets to direct acquisition via Google? Will budgets be reduced in display to fund paid search? Will online gambling increase as people stay in more and avoid expensive nights out?”