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New Digital Ad Legislation and What it Could Mean for Advertisers

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The bill seeks to force businesses with more than $20 billion in digital ad revenue to divest, breaking up their share of control on the market.

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Last week the Competition and Transparency in Digital Advertising Act was introduced by a bipartisan group of senators. At the time of this article’s writing, little was known about the future of this bill, but we’ve compiled a few initial FAQs to answer what we can.

What is the intent behind The Competition and Transparency in Digital Advertising Act?

The bill seeks to force businesses with more than $20 billion in digital ad revenue to divest, breaking up their share of control on the market. While the bill doesn’t specifically name these businesses, major players like Google—which did more than $54 billion in ad business last quarter—and Meta (i.e. Facebook) will be at the top of that list.

Why is this in the news?

This type of legislation aimed at limiting the amount of market share a few large companies have isn’t new or unique. But it’s an ambitious effort, and one that, if passed, could take a big toll on Google’s and Meta’s ad dominance. One possible outcome of this bill is that these tech giants, and others like them, would be forced to exit some lucrative markets. It’s unclear what impact this would have on advertisers, especially small businesses, when it comes to targeting options, campaign management, and overall costs.

Is it official?

This is official in the sense that it has potential for becoming a law, but that’s all at this time. Engadget reports that, “A House of Representatives version of the legislation is also expected to be introduced imminently.” But no one can say how far it will get in the process of becoming a law, or when. The current version may still be amended, stalled, and/or signed, and the timing of any of these outcomes is also unknown.

What does this mean for DKY clients?

DKY manages paid digital campaigns for several of our clients—including those on the largest ad platforms, like Google and Facebook. We always keep one eye on the news, watching for the latest opportunities, warning indicators, and changes that could have an effect on our work.

At this time nothing has been changed or influenced by the news of this legislation. It’s still business as usual.

Until we know more about this bill and the potential of it becoming law, we’ll continue recommending the best tools for each strategy based on our clients’ (and their customers’) goals, cost effectiveness, ROI, scalability, ethical practices, and more.

We’ll also continue to provide guidance on diversification of ad platforms, helping ensure that our campaigns are as “future proof” as possible. If the Competition and Transparency in Digital Advertising Act does get signed into law, DKY is prepared to help our clients pivot and adapt as needed to continue driving traffic and leads.