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Google Ads introduces surcharges and updated enforcement procedures

By August 5, 2021November 8th, 2021No Comments

Google Ads is introducing new jurisdictional surcharges for ads served in select countries, as well as cracking down on repeat violators of certain policies.

Read on to find out if you’re impacted by the new changes.

New surcharges for Google Ads

The cost of doing business with Google just went up by 2%, if you serve ads in India or Italy. Starting on October 1, 2021, Google will include a 2% “Regulatory Operating Cost” surcharge to advertisers’ invoices for ads served in those countries.

Google was already charging advertisers digital service taxes for ads served in Austria, Turkey, the UK, France, and Spain. The July 2021 update is an extension of this policy.

It’s also important to understand that when managing your account and creating your paid digital advertising budget:

  • The fees will be charged in addition to your account budgets.
  • The extra fees won’t be reflected in the cost per conversion metrics in your campaign reporting.
  • Applying the “People in or regularly in your targeted locations” geographic setting can result in racking up more fees (see the Twitter thread from Greg Finn, a partner at digital agency Cypress North.)

A new strike-based system for advertisers who repeatedly violate Google Ads policies

Are you a repeat violator of the policies that govern Google Ads?

Probably not, but if you are, the punishments from Google are now more severe.

Starting in September 2021 and gradually ramping up over a three-month period, Google will launch a new three-strikes system to hold accountable advertisers who repeatedly violate Google Ads policies.

That means harsher penalties for violating these policies:

  • Enabling dishonest behavior
  • Unapproved substances
  • Guns, gun parts, and related products
  • Explosives
  • Other Weapons
  • Tobacco

It won’t stop there either; Google is also promising that advertisers can expect an expansion of the strike-based system that covers more policies soon.

Google will send email updates to advertisers each time they add a policy to the three-strikes system.

How will this impact you?

Like most Google Ads policies, it’s unclear exactly how these new fees and policy enforcement updates will impact healthcare tech, biotechnology, and info tech companies looking to advertise through Google Ads.

The fees seem pretty straightforward depending on where you want your ads to show, but some of the current and likely the future policy violations have the potential to be more unclear from an account management standpoint.

Google Ads clarity

Are you looking for clarity on how these new updates will impact your healthcare tech, biotechnology, and info tech campaigns on Google Ads?

See the difference working with a certified agency experienced in overcoming Google Ads restrictions can make.

Find Google Ads Clarity

David Gomez

Author David Gomez

David is a Senior Marketing Consultant at Clarity Quest. He believes the world would be far less interesting without blogs and social sharing. To learn more about David, visit our leadership page.

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