Europe's digital advertising landscape is undergoing major changes, driven by antitrust lawsuits against technology giants, new regulations such as the Digital Services Act and Digital Markets Act, and the rise of new companies. The changes promise to regulate competition concerns, manage consumer protection and hold digital platforms accountable in the advertising ecosystem.
European antitrust law: regulatory status
In 2023, the European Union introduced two landmark regulations. digital services law (DSA) and digital market law (DMA), Reinventing the Online World. D.S.A. It allows users to flag illegal content and demand greater transparency from big tech companies like Amazon, Apple, Meta, Google, and Zalando.
The DSA has been in effect since August 25, 2023, giving users time to: profit Newfound confidence in navigating the online world. Starting today, February 17th, All online services and digital platforms offering services within the EU must be fully compliant with the DSA.
at the same time, DMA target We need to monitor the market power and behavior of large digital platforms, such as online marketplaces, search engines, and social network services, and be more transparent about their data processing and algorithms.
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Implementing DSA and DMA This marks a major shift in the digital environment. consumer This represents a long-awaited step towards a more user-centric experience. business They are faced with the challenge of adapting their operations to new regulations.
Impact on European digital advertising players
Antitrust investigations into Google, Amazon, and Meta reveal a fundamental problem in the digital landscape: the monopolistic power of corporations stifles competition and harms consumers. Their dominant position has allowed them to manipulate markets, favor their own products, and stifle innovation. In response to these concerns, the DMA has emerged as a ray of hope for a fairer and more competitive digital environment.
In the short term, DMA will disrupt the established businesses of tech giants that have enjoyed a dominant position for years and shape the digital experience of billions of users. However, the DMA ushered in a new era of accountability and transparency, forcing companies to rethink their practices and prioritize the interests of their users. This may result in business model changes such as: secure Interoperability between different messaging platforms and more freedom for users to choose their preferred apps and services..
The Amazon case is a prime example of this dynamic. The company is currently fighting an antitrust lawsuit brought by the U.S. FTC, accusing it of abusing its market power to the detriment of consumers and competitors. The legal challenges facing technology giants like Amazon could allow them to implement changes consistent with the principles of the DMA even before the full impact of the regulation is felt. DMA is also likely to make the advertising market more competitive in the long run, with a wider range of players offering innovative solutions to advertisers and users.
Interestingly, the introduction of DMA provides an opportunity for startups to enter the digital advertising market and challenge the dominance of established players. For example, differentiate your company by offering a new perspective on user experience, introducing innovative solutions, and focusing on niche markets often overlooked by established players with broader market ambitions. can do.
The future of digital advertising in Europe
Although the European digital advertising market faces several challenges, Projected to grow by 6.38% from 2023 to 2028As a result, the market size in 2028 will be $161.2 billion. To succeed in this evolving landscape, European advertisers and platforms must prioritize compliance with new regulations, embrace innovation, and Facilitate strategic partnerships by opening doors to new markets, strengthening distribution capabilities, and accessing valuable insights.
There is no doubt that GDPR and DSA are shaping the advertising industry with an emphasis on user privacy and transparency, but should companies in the EU continue to rely solely on giants like Google and Meta for their advertising needs? should be considered. We need to provide fair pricing and transparent advertising practices that align with the new regulatory environment and foster a competitive ecosystem in which local players can thrive.
This benefits both advertisers and consumers. Advertisers can achieve better value for money, while consumers have more control over their privacy. It is therefore up to regulators, advertisers and platforms to seize this opportunity and build a thriving ecosystem that works for all stakeholders.
Moreover, the rise of new competitors poses a threat to established technology giants like Google and Meta. This situation requires advertisers and platforms to invest in innovation, develop novel user engagement strategies, embrace cutting-edge technology, and leverage advanced data analysis techniques to remain competitive. It highlights the reason. For example, subsets of AI include deep learning, computer vision, neural networks, large-scale language models, and reinforcement learning. drive Creativity in digital advertising.
Collaboration in the field of digital marketing
Collaboration is the key to unlocking new opportunities and resources. Advertisers and platforms can benefit from partnerships with tech giants, other advertisers, and startups to expand their reach and expertise. Collaborative marketing can help you acquire new customers and leads, increase engagement with your content, social media, and new digital products, increase brand awareness, and drive conversions and revenue.
Although DSA and DMA pose challenges and require changes in practice, they also present opportunities for emerging players. Digital advertising players must adapt by ensuring compliance, embracing innovation, and fostering strategic partnerships to remain competitive and grow in the market.
Vitaly Gerko is CBDO for Adtech Video Platform viceo.
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