Bill Overview
Title: Competition and Transparency in Digital Advertising Act
Description: This bill limits certain large digital advertising companies from owning multiple types of advertising exchanges or brokerages and imposes certain duties with respect to the interests of the customers of such brokerages. Advertising exchanges and brokerages generally facilitate advertisers and publishers in buying and selling advertising inventory through an automated bidding process. Specifically, companies with more than $20 billion in annual digital advertising revenue are prohibited from owning more than one type of service within the digital advertising marketplace. For example, a company, such as Google, may not own a digital advertising exchange and provide software that assists publishers of online advertisements in selling advertising space on their websites. Additionally, companies with more than $5 billion in annual digital advertising revenue that provide brokerage services to buyers or sellers of digital advertisements must act in the best interest of their brokerage customers. The bill also establishes transparency and privacy requirements for such brokerages. The bill provides for enforcement of these requirements by the Department of Justice, state attorneys general, and private right of action.
Sponsors: Rep. Buck, Ken [R-CO-4]
Target Audience
Population: People associated with digital advertising worldwide
Estimated Size: 250000000
- The global digital advertising industry includes companies and individuals that engage in buying, selling, and managing ad inventory.
- Large companies like Google and Facebook, which dominate the digital advertising market, will be directly impacted due to their high revenue from digital advertising.
- Small to medium-sized businesses that utilize digital advertising exchanges or brokerages globally will be impacted as they may experience changes in service provision, pricing, or competition.
- Consumers and publishers that rely on digital advertising for generating revenue or to purchase products through advertisements are impacted at a global scale as the bill may change the way advertisements are managed, possibly affecting costs and availability.
Reasoning
- The Competition and Transparency in Digital Advertising Act targets large digital advertising companies possibly altering the landscape notably for smaller players. To perceive its impacts, the simulated interviewees encompass diverse individuals directly or indirectly connected to digital advertising. This ranges from marketing executives, small business owners who rely on online ads, to general consumers who interact daily with digital advertisements.
- Given the budgetary constraints of the policy, the primary direct impacts will likely be felt by stakeholders within the digital advertising value chain in competitive landscapes. However, broader indirect effects on the well-being of consumers and advertisers can be anticipated over the longer term.
- Considering the wide-reaching influence of major players like Google and Meta, as well as smaller businesses' reliance on these platforms for advertising and reaching consumers, these interviews capture how policy changes might ripple through different levels of the economy and society.
Simulated Interviews
Digital Marketing Executive (San Jose, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy might level the playing field, creating fairer opportunities for those of us not backed by massive corporations with vertical integration.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Small Business Owner (New York, NY)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I am concerned about how this might affect the cost of advertising, but increased competition could reduce prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Tech Policy Analyst (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 7.0 years
Commonness: 7/20
Statement of Opinion:
- This could dramatically shift the digital ad landscape. While well-intentioned, enforcement will be key to its success.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 6 |
Software Developer (Austin, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- It's exciting since this means more opportunities for innovation and perhaps new players entering the market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Retired Teacher (Miami, FL)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- I'm not sure how this will affect my daily life, but I do worry about privacy and data transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Ad Agency Manager (Seattle, WA)
Age: 41 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Our agency might see an uptick in demand as clients navigate a possibly more diverse ad market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I wonder if I'll have more clients from small businesses willing to advertise if costs come down.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Consumer Advocate (Phoenix, AZ)
Age: 38 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This bill enacts much-needed transparency improvements. However, it may not address all consumer concerns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Independent Publisher (Portland, OR)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 7/20
Statement of Opinion:
- I'm skeptical whether increased competition will truly benefit smaller publishers like myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Economist (Boston, MA)
Age: 55 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- While promising, actual impacts will depend on enforcement efficacy and adaptation by major firms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $250000000 (Low: $150000000, High: $400000000)
Year 2: $230000000 (Low: $140000000, High: $370000000)
Year 3: $210000000 (Low: $130000000, High: $340000000)
Year 5: $190000000 (Low: $120000000, High: $310000000)
Year 10: $160000000 (Low: $100000000, High: $260000000)
Year 100: $80000000 (Low: $50000000, High: $130000000)
Key Considerations
- The digital advertising market is a significant contributor to the U.S. economy and any changes could have widespread implications.
- Compliance costs and legal challenges could arise from major digital advertising companies.
- Impact on U.S. consumers could vary by income level depending on how changes affect advertising costs and practices.