Google Ads Update: Stricter Personalized Advertising Policies and Enhanced Data Privacy Measures

Google Ads has recently updated its personalized advertising policies, effective from 2026. The new changes place a strong emphasis on data privacy, enhanced targeting restrictions, and a clearer approach to how advertisers can use customer data. With stricter rules for sensitive information and improvements in custom audiences, this policy update is set to impact how digital advertising campaigns are managed across the Google Ads platform.

For businesses and digital marketers, understanding these shifts is crucial. As the landscape evolves, agencies like Digilogy are staying ahead of these changes to provide the best strategies for their clients.

Key Updates to Google Ads Personalized Advertising Policies

1. Enhanced Data Privacy and Safety Measures

In an effort to increase user trust, Google Ads will now automatically delete account activity data after 18 months. This update eliminates the use of sensitive information such as health, race, religion, and sexual orientation for ad targeting. It also protects users’ privacy by restricting advertisers from using the content stored in Google services like Gmail, Drive, and Photos for advertising purposes.

What’s New:

• Data Retention: User activity data will be deleted after 18 months.
• Privacy Enhancements: Restrictions on the use of sensitive user information for ad targeting.
• Transparency: Advertisers are now required to disclose data collection practices clearly.

2. Restricted Targeting for Specific Categories

Google Ads is limiting how personalized ads can be applied to certain user groups, particularly in categories with higher privacy sensitivities. Advertisers must avoid targeting sensitive areas that may negatively impact the user experience, such as sensitive health or financial categories.

New Restrictions:

• Categories like health, religion, and sexual orientation cannot be targeted for ads.
• Advertisers must ensure user experience is prioritized, reducing potential harm.

3. Customer Match and First-Party Data

One of the biggest shifts in Google’s policies is the focus on first-party data. Advertisers can now only use customer information collected directly from users for targeting. Google encourages using email addresses, mailing addresses, and phone numbers as primary match keys for creating customer lists. A minimum of 5,000 active users is required to use a Customer Match list for targeted campaigns.

Changes to Customer Match:

• Match Keys: Use email, mailing address, and phone number for creating customer lists.
• User Threshold: A minimum of 5,000 active users is required to match.
• Limited Identifiers: Only 20 user identifiers are allowed per list to avoid errors.

4. Custom Audiences and Improved Targeting

Google Ads now offers expanded custom audiences, enabling better targeting based on user search terms, app usage, and website visits. This offers advertisers a more nuanced way to reach potential customers while respecting data privacy.

Improved Targeting Options:

• Custom Audiences: Target users based on behavior and preferences.
• Improved User Matching: Better targeting for more relevant ad placements.

5. API Enhancements and User Identifiers

The update includes significant improvements to the Google Ads API, which now handles user identifiers more efficiently. Advertisers can work with up to 20 user identifiers per object to manage their customer lists and ensure privacy compliance.

API Changes:

• User Identifiers: Support for handling up to 20 identifiers per object.
• Enhanced User Privacy: More efficient handling of user data across platforms.

Compliance and Best Practices for Advertisers

Transparency Requirements

Advertisers must provide clear disclosures about their data collection practices. These disclosures help build trust with users and ensure that businesses are compliant with new privacy standards.

What You Need to Do:

• Be transparent about data collection practices.
• Ensure all policies are up-to-date with Google Ads’ new guidelines.

Policy Violations and Account Restrictions

Failure to adhere to these new privacy practices can result in restricted access to advertising capabilities. Misusing user data or not following these guidelines could lead to the suspension of advertising accounts.

Avoid Violations:

• Ensure all data is collected legally.
• Follow transparency and privacy policies carefully to avoid penalties.

Opt-Out Mechanisms for Users

Google is giving users more control over their personalized ad experiences. Users can turn off ads personalization or delete their activity history via My Ad Center, which will help them maintain control over their data.

What This Means for Businesses

With the new policies, businesses must adapt their advertising strategies to ensure compliance with Google’s more stringent privacy regulations. These updates affect how companies collect and use customer data, especially for targeting and audience creation.

Key Takeaways for Advertisers:

• Focus on first-party data and avoid using third-party data.
• Respect users’ privacy preferences and give them easy access to opt-out options.
• Ensure compliance with Google’s new data retention and transparency rules.

Final takeaway 

 Google Ads’ updated personalized advertising policies present both challenges and opportunities for businesses. As the digital advertising landscape tightens around data privacy, staying compliant is essential for continued success. Digital marketing agencies, like Digilogy  are well-equipped to help businesses navigate these changes and maintain effective advertising strategies.

For further updates and tailored strategies, visit Digilogy’s news page or contact us for expert guidance on adapting your campaigns.