Why do paid links violate Google’s guidelines while other ads don’t? – Google Video
Google is making the very clear distinction here:
Ads that do not violate Google Guidelines because they use the no-follow attribute (for example) are fine
Ads (links) that pass on PageRank are are clearly purchased DO violate Google Guidelines.
Simple eh? Well, maybe not. Take a look at these 2 investigations here and here to see that these simple rules may not apply to all links/ads.
Unfortunately, for small businesses we need to comply with the Google rules – even if some of the bigger companies do not!
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