The recent ANA Masters of Advertising Law Conference made one point especially clear: Digital advertising is entering another period of rapid transition. Sessions examined how artificial intelligence (AI) and other emerging technologies; new advertising formats and media channels; evolving privacy requirements; and changing relationships among advertisers, agencies, publishers, platforms and technology providers are reshaping the industry. For brands and agencies planning for 2027, the challenge is not simply keeping up with the newest tool. It is ensuring that campaign design, data practices, operational responsibilities and contracts remain aligned as the industry evolves. With that in mind, here are a few takeaways from this year and considerations for 2027.
The AdTech Stack Is Becoming More Complicated, Not Less
For years, the industry has predicted a simpler advertising supply chain. Although we have certainly seen consolidation through acquisitions, mergers and other combinations, that has not necessarily translated into a simpler ecosystem. In practice, brands may now work across retail media networks, connected television providers, social platforms, demand-side platforms, data providers, clean rooms, data onboarding and identity resolution providers, campaign analytics and measurement vendors, and an ever-expanding set of AI-enabled tools. A single campaign may involve several parties collecting, matching, enriching, activating and measuring data, often under different technical and legal frameworks.
This complexity means that before launching a campaign, brands and agencies need to understand the vendor and partner relationships at play, map the relevant data flows and identify the agreements governing those relationships. That last part can be more difficult than it sounds. In some cases, agencies enter into agreements with media vendors and other partners on behalf of their advertiser clients; in others, the agency may be operating under terms entered into directly between the advertiser and the vendor. Either way, both brands and agencies need to understand which agreements govern the various relationships and their respective rights and obligations under those agreements.
Privacy Regulators Are Focused on Implementation Details
Privacy compliance cannot be limited to reviewing privacy notices and data protection addenda. Regulators are increasingly going beyond surface-level reviews of disclosures and contractual terms and examining how privacy requirements are actually implemented, including how consumer privacy choices and signals are received, processed and passed through the digital advertising chain.
Brands and agencies must ensure that consumer-facing disclosures, privacy choices, contractual terms and back-end implementation all align with applicable legal requirements. That requires coordination among Legal, IT, Marketing, Information Security, Product and other stakeholders to ensure that consumer choice mechanisms are properly implemented and working as intended.
The bottom line: Regulators are increasingly looking under the hood of AdTech systems, often with the assistance of technical experts, to determine whether consumer choices are actually being honored. In-house counsel should be doing the same by working closely with technical teams to understand and test how privacy requirements operate in practice. Viewing the process from the consumer’s perspective and periodically testing whether privacy choices work as intended should become standard practice.
Traditional Roles and Role-Based Obligations Are Evolving
Lines between traditional roles within the advertising ecosystem are becoming increasingly blurred. Retailers that historically sat primarily on the buy side are increasingly operating retail media networks, where they may also act as media sellers, data partners and measurement providers. Publishers are increasingly supplementing their first-party data with third-party data and offering audience extension or off-platform audience activation. Agencies, meanwhile, may offer proprietary technology, platforms, data and consulting services in addition to traditional agency services. As these lines blur, companies need to consider the functions and activities they are actually performing rather than rely on traditional labels to determine their legal obligations.
That distinction is becoming increasingly important as new and evolving laws impose obligations based on an entity’s activities or its relationship to data. For example, companies that have never viewed themselves as “data brokers” in the traditional sense are now assessing whether they may fall within broader definitions of the term under recently enacted laws. As business models evolve, companies should not assume that yesterday’s labels determine today’s legal obligations.
AI Is Becoming Embedded Throughout the Advertising Ecosystem
AI is not limited to generating advertising copy or images, although those uses present their own risks and compliance considerations. Brands, agencies and their partners are increasingly using AI behind the scenes for audience development, media planning and buying, bidding, optimization, and measurement. These uses can create significant efficiencies, but they also raise important questions about transparency and accountability. If an AI-enabled system selects an audience, changes campaign parameters or generates performance insights, brands and agencies need to understand what data powers the system, how its outputs are reviewed, and whether campaign or customer information may be used to train or improve the provider’s models.
As several discussions at this year’s ANA conference highlighted, AI is increasingly becoming part of the infrastructure underlying advertising, rather than simply a tool for generating creative content. Contracts and governance processes therefore need to address more than whether AI may be used. Depending on the use case, relevant considerations may include permitted and prohibited uses, human oversight, testing, use of data, ownership of inputs and outputs, confidentiality, and responsibility for AI-generated decisions or results. A tool that helps draft an internal media recommendation, for example, presents different considerations from one that autonomously purchases media, selects audiences or modifies consumer-facing creative.
Looking Ahead
If the past year is any indication, 2027 will bring no shortage of change to the advertising ecosystem. That change will also bring opportunities for brands and agencies willing to adapt, experiment and evolve along with it. Whatever comes next, 2027 promises to be another interesting year for the industry.
