Google to show who actually pays for ads in new transparency update

Google has announced updates to its Ads Transparency policy, introducing new features that will display additional information about the entities paying for advertisements. The changes, announced on May 2, just two days ago, will be implemented in two phases beginning this month and continuing through June 2025.

According to the official announcement sent to advertisers, "Google is updating the Ads Transparency policy to include the display of additional information about the entity that pays for the ads." This update represents the latest evolution in Google's ongoing efforts to increase transparency in digital advertising.

The first phase begins this month, with Google displaying payment profile names as payer names for verified advertisers when those names differ from their verified advertiser names. For verified agency accounts, client payment profiles will be used as payer names when they differ from verified advertiser names. These payer names will appear in both the "My Ad Center" panel and the Ads Transparency Center.

The second phase launches in June 2025, allowing Google Ads advertisers to edit their displayed payer names through the advertiser verification page under billing. From that point forward, any changes an advertiser makes to their payer name will display instead of the payment profile name. New advertisers creating Google Ads accounts will have their payment profile names displayed as payer names unless they modify this during the verification process.

Election Ads verified advertisers, who have already provided payer information during their verification process, will continue to have their displayed payer names managed under existing Election Ads verification policies. These advertisers must complete the election advertising verification process again if they wish to update their payer names.

Why advertiser identification matters

The Ads Transparency Center serves as a searchable repository of advertisers and the ads they've run on Google platforms, including Search, Display, Gmail, and YouTube. Users can search by advertiser or website name and filter results by date and targeted location. The center also allows users to report ads they believe violate Google's policies.

This latest update enhances Google's verification system, which requires advertisers to complete steps including providing basic business and identity information, submitting official documentation showing legal names, trademark names where applicable, addresses, and potentially additional documents related to business operations.

For verified advertisers, Google displays their legal name or trademark name and location as provided during verification, marked with a "verified" badge in the Ads Transparency Center and ads disclosures. Unverified advertisers have their payments profile name and location displayed with an "unverified" badge.

Implications for agencies and advertisers

The changes create several urgent considerations for advertising agencies. The announcement specifically warns that "agency advertisers who are currently incorrectly verified as direct advertisers should reset their advertiser verification and re-verify as an agency before May 31, 2025." This deadline aims to ensure that agency names aren't incorrectly displayed as payer names when that isn't the intention.

The update establishes clearer distinctions between the party creating advertisements and the entity funding them. This distinction particularly matters for agencies managing campaigns on behalf of clients, as incorrect verification could lead to misleading attribution of ad funding sources.

When combined with Google's existing advertiser verification program, these changes represent a significant upgrade to ad transparency. Previously, the system primarily identified the party managing the campaign, which could be an agency rather than the actual funding source.

Technical details of the implementation

The technical implementation of these changes builds upon Google's existing Ads Transparency infrastructure. Information about advertisers and their campaigns is made available through the Ads Transparency Center, which includes data on ads served over a certain time period. For ads in certain regions like the European Economic Area (EEA), which includes EU member states plus Iceland, Liechtenstein, and Norway, Google provides additional information.

This additional information includes targeting data, the total number of recipients for each ad, and subject matter labels for ads. Google also provides API access to data about ads served in the EEA in the Ads Transparency Center, with access and usage subject to the Ads Transparency Center terms of service.

The company may also provide regulators and self-regulatory organizations with API access to existing data from the Ads Transparency Center for ads served outside the EEA.

Legal requirements driving transparency

Google's announcement notes that the company "is legally required to make certain information in the Ads Transparency Center publicly available." The company commits to using "reasonable efforts to ensure that the information in the Ads Transparency Center is accurate and complete."

Geographic and age-related restrictions apply to the ads visible within the Ads Transparency Center, reflecting the ads users would see when using Google services based on their location or account settings. However, depending on search queries and account settings, users may see ads that would otherwise be prohibited in their country of residence due to local legal requirements, or that were restricted from displaying alongside content made for children.

For business users or organizations, the Ads Transparency Center Additional Terms of Service note that "the limitations and restrictions in the Terms are necessary and reasonable to protect Google." The terms specify that Google is entitled to seek temporary or permanent injunctive relief against any threatened violation of such limitations or restrictions in any court of competent jurisdiction, without having to prove actual damages.

Building on existing transparency initiatives

The new payer identification features complement Google's existing transparency tools, including the Political Advertising Transparency Report, which provides information about political and election ads in regions where Google's Political content policies apply.

Google also provides information about advertisers through ad disclosures directly from ads shown to users. Through My Ad Center, users can learn why they're seeing certain ads and view additional information about advertisers, including their verified locations as provided through Google's advertiser verification program.

These transparency initiatives represent Google's attempt to balance competing interests in the digital advertising ecosystem. While advertisers value targeting capabilities and efficiency, users and regulators increasingly demand clarity about who pays for ads and why particular users are targeted.

Impact on the marketing community

For marketers, these transparency changes arrive at a time of significant scrutiny of digital advertising practices. The added visibility into who actually funds advertisements creates both challenges and opportunities.

On one hand, brands working with agencies must ensure their agency partners have properly verified their accounts and appropriately identified client relationships. Failure to do so could lead to misattribution of advertising funding, potentially creating confusion about brand messaging and responsibility.

On the other hand, increased transparency enables brands to demonstrate authenticity and build trust with consumers. As digital audiences grow increasingly skeptical of advertising, clear identification of funding sources provides an opportunity for legitimate brands to differentiate themselves from less transparent competitors.

The June update allowing advertisers to edit displayed payer names provides marketing teams with direct control over how their brand appears as a funding source. This capability will require coordination between marketing and finance departments to ensure consistency between payment profiles and desired brand presentation.

For political advertisers, the implications are even more significant. Political ad transparency has faced intense scrutiny in recent election cycles, with concerns about foreign influence and misleading attribution. The continuation of separate, stringent verification processes for election advertisers reflects the heightened sensitivity around political messaging.

Timeline of Google's ad transparency evolution

• October 2018 - Google launches the Political Advertising Transparency Report
• May 2023 - Google begins tracking impression ranges for the Ads Transparency Center
• September 2023 - Google begins tracking platform-specific impression ranges for the Ads Transparency Center
• May 2, 2025 - Google announces update to Ads Transparency policy introducing payer name identification
• May 2025 - First phase implementation: payment profile names displayed as payer names for verified advertisers
• May 31, 2025 - Deadline for agencies to reset verification and re-verify as agencies
• June 2025 - Second phase implementation: advertisers gain ability to edit displayed payer names