Google expands custom segments for restricted Display Campaigns

Google is quietly updating its Personalized Ads policy on Dec. 12, expanding access to Custom Segments for certain Display campaigns — a shift that could unlock new targeting options for advertisers previously restricted under the policy.

Driving the news. Advertisers received a brief, mandatory service email from Google announcing the change but offering no details beyond the policy update. The key clarification: this update applies specifically to campaigns limited by the Personalized Ads policy, not to all Display campaigns.

The confusion: Google Ads Coach Jyll Saskin Gales noted that Custom Segments have already been available for most Display campaigns by default, meaning the update is about expanding access to those previously blocked.

PPC Freelancer Sofia Akritidou also highlighted the confusion of this letter by asking several key questions:

• Could this allow Custom Segments for health-related advertisers who’ve historically been blocked from audience targeting?
• If so, would users feel uncomfortable seeing display ads tailored to sensitive conditions?
• Does “Display campaigns” include all GDN formats — and could this open Custom Segments for Demand Gen as well?
• And why isn’t Google clarifying what actually changes on Dec. 12?

Why we care. Google’s update potentially expands the use of Custom Segments in Display campaigns, which could allow for more precise targeting under the Personalized Ads policy. This may enable marketers to reach niche audiences, including sensitive categories like health-related services, but it also raises questions about user privacy and campaign suitability.

Clarity on whether this applies to Demand Gen campaigns as well will be crucial for planning strategy ahead of December 12.

What it could mean for advertisers: This could mean:

• More targeting options for Display campaigns previously stuck with reduced audience tools, and
• The ability to build intent- or interest-based segments even when stricter policy conditions apply

First seen. This update was first spotted by Head of Paid Chris Ridley when he shared the email he got from Google on LinkedIn

The bottom line. If you’re running Display campaigns limited by the Personalized Ads policy, this update boosts your targeting toolkit — but for everyone else, nothing changes.