Understanding the Digital Markets Act and its impact on advertisers 2024

The Digital Markets Act (DMA), which came into force on 6 March 2024, marks a significant step in the regulation of large technology companies in the European Union. Designed to target companies qualified as “access controllers”, this legislative text aims to ensure fair competition in the digital market by preventing these dominant players from abusing their position to oust competitors or manipulate the market. This article offers a detailed exploration of DMA, its implications for gatekeepers, and its overall impact on the market, while offering practical tips for preparing for these major changes.

What is the Digital Markets Act?

The DMA is a European Union initiative that regulates the practices of the main digital platforms, referred to as “guardians”. Its objective is to ensure fair competition on the European digital market, by prohibiting these technological giants from abusing their dominant position. According to the European Commission, the DMA imposes clear obligations on platforms that act as gatekeepers for essential platform services, including social networks, search engines, operating systems, and online advertising services.

To be classified as gatekeepers, businesses must meet specific criteria such as the number of users, their impact on the European market, and their ability to lock consumers and businesses into their ecosystems. These gatekeepers, which include giants like Alphabet (Google), Amazon, Google, Amazon, Apple, Amazon, Apple, Apple, Meta (Facebook), Microsoft, and ByteDance (owner of TikTok), must comply with a series of stringent rules to ensure transparency and fair competition.

Implications of the Digital Markets Act for advertisers

DMA represents a major change for advertisers operating in the European Union, profoundly affecting how they interact with major digital platforms and use data for ad targeting. This change is aimed at creating a more transparent and equitable environment.

1. Equitable access to data

A key reform of the DMA is the regulation of data access for advertisers. Platforms can no longer promote access to their own advertising services at the expense of third parties. For example, Google will no longer be able to prioritize Google Shopping in Google Ads search results without offering opportunities equivalent to other shopping services. This allows advertisers to access data that was previously exclusive to platforms, leveling the playing field. This confirms the increased dependence on first-party data as well as a great need for more transparent data collection practices for advertisers.

2. Prohibition of the crossing of data without consent

The DMA imposes restrictions on the crossing of data without explicit user consent, addressing concerns about privacy and control of personal data. Advertising campaigns must now be based on data obtained in a transparent and compliant manner.

3. Increased transparency and reporting requirements

Platforms should provide advertisers with detailed information about the performance of their ads and the mechanisms underlying their delivery. This transparency allows for more effective optimization of campaigns.

Preparation at the analytical level:

With the DMA, all advertisers operating within the European Economic Area must adjust their practices.

Migrating to Google Analytics 4 (GA4) is recommended to meet the privacy standards required by the DMA, offering more detailed and configurable insights.
Google's Consent Mode allows the behavior of tags/SDKs to be adjusted according to user consent, ensuring the collection of information in accordance with legal requirements.

Strategies for advertisers in the DMA era

To adapt to the new rules imposed by the DMA, advertisers should consider the following strategies:

1. Focus on first-party data

With DMA limiting the use of third-party data without consent, advertisers should focus on developing their proprietary data capabilities. This involves collecting data directly from customers and audiences through engagements and interactions, ensuring compliance with the DMA.

2. Ensure compliance

Advertisers need to thoroughly review their data processing and advertising practices to ensure that they comply with DMA requirements. Legal advice may be required to effectively navigate the complex landscape of digital advertising laws.

3. Exploiting new technologies

Adopting advanced consent analysis and management technologies will be critical. Tools like Google's consent mode, which adjusts data processing based on user consent, can help advertisers stay in compliance while optimizing ad performance.
The Dataïads post-click experience tool is another optimal solution for customizing customer experiences based on contexts while respecting new regulations.

Dataïads is also committed to using first-party data to personalize the journeys of users who arrive on sites via advertising campaigns. This approach is not only in line with the DMA guidelines, which severely restrict the use of third-party data, but it also promotes healthier but still efficient personalization through an effective A/B testing protocol through the “Test, Learn & Trade” methodology, AI, and advanced algorithms.

Dataïads' technology is designed to welcome visitors and maximize conversion by exploiting artificial intelligence, adapting to all contexts and therefore advertising sources (PLA, LIA, Social Media, SEA, etc.). A perfect argument for advertisers looking to diversify their acquisition channels. This process optimizes conversion rates and the overall effectiveness of advertising campaigns, while complying with compliance standards.

Conclusion

The Digital Markets Act is a significant effort to rebalance power in the European digital economy, ensuring fairer and more open competition. For advertisers, this represents both a challenge and an opportunity to innovate their marketing approaches and take advantage of a fairer marketplace.

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