Latest AdWords info
After going back and forth all day, I finally got an answer that I believe is accurate as to how this new AdWords policy is at least supposed to be implemented. In a nutshell, for an ad for an adult site to be approved, at least the following two things now need to occur.
1) First, the site as a whole must not be deemed to have the overall intention of providing sexually explicit content. This of course drastically reduces the kinds of sites you can advertise. If a site is deemed by them to have the overall intention of providing sexually explicit content, the domain will get suspended in their system and no landing page by any advertiser will ever get approved so don't even bother resubmitting any ads for it as if you do you put your account at risk for being suspended.
2) If a site passes the above test, then and only then, the landing page submitted is reviewed to make sure it meets the new policies. This is where a non nude or even a page with nudity is permitted, provided there is no sexual activity on the landing page. Be careful though as even though nudity and even exposed genitalia is permitted as per their published policy, a photo of a person with their hand simply covering their non clothed genitalia is not permitted as it suggests masturbation which is explicitly prohibited.
Anyway, hope this helps. I had a bunch of sites I was advertising get suspended which led to my account getting suspended. I deleted all the ads and applied for an appeal and was granted one so now I have an active account again but with no more adult ads at the moment.
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