Digital advertising has ballooned into a colossal $700 billion industry, yet it largely operates under minimal regulation, leaving brands and consumers vulnerable to a myriad of issues including fraud, disinformation, and misrepresentation. As the head of Check My Ads, an ad tech watchdog, I’ve witnessed first-hand the multitude of problems that arise from this lack of oversight. We frequently encounter cases where advertisers unknowingly support websites propagating misleading information, such as false narratives about COVID-19 or manipulated election content. Our work often involves taking down ads that appear on platforms generating harmful content, indicative of a broken system that fails to protect both advertisers and the public from scams and ideological misinformation.
In the current digital advertising landscape, major players like Google facilitate ad placements based on metrics and target audience without providing advertisers with comprehensive information about where their ads are displayed. This opacity presents significant challenges for brands, as they can inadvertently associate with websites that contradict their values and tarnish their reputation. For example, in 2024, an investigation revealed that Google was profiting from placing ads alongside explicit content and hateful material, which was fundamentally at odds with the advertisers’ intent. The lack of accountability and transparency surrounding these ad placements raises serious ethical concerns and necessitates regulatory intervention.
Looking ahead to 2025, there is a growing movement to implement the first set of regulations designed specifically for the digital advertising sector. Globally, legislators in key regions—such as Brussels, Ottawa, Washington, and London—are crafting policies that will empower brands to seek recourse when their ads are mismanaged and to validate the integrity of their advertising campaigns. A critical development is the proposed Online Harms Act in Canada, which aims to hold advertisers accountable for content promoting illegal activities, particularly focusing on the exploitation of minors. This legislative action represents an important step toward ensuring that financial gain from illegal content would be prohibited, thus fostering a safer online environment.
In the United States, significant legislative efforts are underway in states like California and New York, which are central to the global ad tech landscape. Proposed “know-your-customer” laws are being debated to track financial transactions related to advertising practices better. New York stands out as a hub for ad tech companies, while California’s transparency laws would have a far-reaching impact on Google, the leading ad tech company worldwide. By requiring greater accountability in ad placements and spending, these laws would enhance consumers’ and brands’ ability to navigate the digital advertising ecosystem.
Moreover, the unregulated nature of the digital advertising industry poses a substantial threat to democratic processes. In the U.S., for instance, presidential campaign funding remains essentially unregulated, with campaigns projected to spend upwards of $2 billion on digital advertising in 2024. Without regulatory oversight, there is little chance for public insight into how campaign funds are allocated across digital platforms, further complicating accountability and public trust in the political advertising process. As lawmakers push for more stringent controls in 2025, there is a palpable urgency to address the troubling implications of unchecked spending and opaque practices.
In conclusion, significant changes are on the horizon for an industry long characterized by little to no regulation. The convergence of legislative initiatives across multiple nations highlights the urgent need to reform digital advertising practices. By increasing transparency and accountability, and by providing brand protection mechanisms like automatic refunds for fraud or violations, the landscape for advertisers and consumers can be improved. This regulatory push is essential not just for the integrity of advertising but also for the preservation of democratic institutions that are increasingly susceptible to manipulation in a largely unregulated digital space.
