Google Relaxes Advertising Ban on CBD Products From January

Google Relaxes Advertising Ban on CBD Products From January

News by Anja Paspalj
Published: December 29, 2022

Google is changing the rules! Beginning in January, Google will loosen restrictions on advertising cannabidiol (CBD) products for the first time, marking what may be a game-changer for CBD businesses and online advertising alike.

Google is set to adjust two ad policies on January 20 which will allow digital ads of pharmaceuticals with CBD that have the stamp of approval from the Food and Drug Administration. Additionally, ads for hemp-derived products such as beauty products and candles will be permitted. The advertisements will initially be shown to only users in Colorado, California and Puerto Rico if they are above the age of 18.

Interest in CBD products have increased nationwide. The 2021 FDA report revealed that that the CBD market is expected to quadruple by 2026.

On the other hand, Google reported its fifth consecutive quarter of slowing sales growth in October, with YouTube experiencing a drop in advertising revenue for the first time.

Although this is merely a test to track the loosening of rules for advertising CBD products, it could prove positive progress in the digital space.

Most digital advertising giants, such as Amazon, still prohibit the advertising of cannabis products, although certain platforms are breaking down roadblocks. Twitter, for example, approved the advertising of non-ingestible CBD products to US users in 2019.

While CBD products with less than 0.3% THC are legal under federal law, it begs the question of what is taking digital advertisers so long to jump on board.

CBD product business owners have shown great interest in advertising in the digital space, but have been forced to resort to alternative methods due to regulation bans. As such, they rely largely on social media channels and have even begun investing in advertising in the metaverse.

Google maintains that it will consider the user and advertiser’s feedback, before making any further changes to its policies regarding advertising CBD-related products.

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