Legal considerations for digital and programmatic advertising are essential when your brand visibility, data use and ROI rely on automated targeting, real-time bidding and third-party platforms.
As AI becomes central to how ad campaigns are bought, optimised and targeted, the risks grow too. Ads can appear alongside inappropriate content, personal data may be shared unlawfully, and automated systems can make decisions with little transparency or accountability. Without the right legal safeguards, these issues quickly impact both compliance and trust.
Our commercial law solicitors help businesses navigate this evolving space; drafting strong commercial terms, ensuring regulatory compliance and reducing exposure to fraud and reputational harm.
Contents:
What does digital and programmatic advertising include?
Digital advertising is the promotion of a brand, product, or service through digital channels, including web browsers, social media, blogs, apps and other internet-based platforms. It includes search engine marketing, display ads, email campaigns and social media placements.
Programmatic advertising automates the buying of digital ad space using AI and algorithms to make split-second decisions on which ads to place, for which user, and at what cost. Unlike traditional media buys, programmatic allows you to serve highly targeted impressions across many platforms, driven by behavioural data and real-time bidding.
What are the key risks and how are these managed?
Key risks
One of the biggest risks in digital and programmatic advertising is the misuse or mishandling of personal data. AI systems powering AdTech often rely on analysing large volumes of user data to deliver targeted ads. Without clear safeguards, data may be collected, shared or processed without valid consent, breaching the UK GDPR and the PECR.
There's also the risk of algorithmic bias, where targeting criteria unintentionally exclude or discriminate against certain groups. Lack of transparency in AI decision-making makes it difficult to detect and correct these issues.
Content regulation is another key area. Advertisers are responsible for ensuring that their ads are not misleading, offensive, or placed alongside inappropriate content. AI can sometimes misjudge context—leading to reputational damage if an ad is placed next to harmful or misleading material.
Finally, contractual risk arises when advertisers don't have full oversight of how their content or data is being used across the complex chain of agencies, platforms, and intermediaries involved in AdTech.
What are the key regulations?
The Data Protection Act 2018, as the UK’s implementation of the General Data Protection Regulation (GDPR), governs the use of personal data in digital advertising. Businesses must ensure that personal information is processed fairly, lawfully and transparently. This is especially important when AI systems are involved in profiling or decision-making.
The Privacy and Electronic Communications Regulations (PECR) sit alongside the UK GDPR and apply specifically to electronic marketing and the use of cookies or similar technologies.
Special consideration must also be given to children’s privacy, governed in the UK by the ICO Children’s Code.
In addition, regulatory bodies like the Advertising Standards Authority (ASA) and IAB UK issue codes and standards for ad content and targeting practices. The Online Safety Act and Digital Markets, Competition and Consumers Act are also set to introduce further requirements for online platforms, some of which may impact advertising practices.
What does this mean for you?
Businesses must take proactive steps to ensure that their digital advertising strategies meet legal requirements and uphold user trust. This includes:
- Having clear privacy policies and valid consent mechanisms
- Ensuring contracts assign accountability for data handling and brand safety
- Embedding AI accountability into advertising agreements
- Monitoring ad placements and campaign performance for anomalies or fraud
- Being alert to bias and discrimination risks in audience targeting
This can feel complex, but our team is experienced in helping businesses strike the right balance – enabling effective advertising while meeting regulatory standards.
What is advertising fraud?
Advertising fraud involves artificially inflating impressions, clicks or conversions to misuse advertising budgets. Common types include:
- Click fraud – where bots or individuals click on ads without intent to convert
- Domain spoofing – where fake sites are passed off as premium publishers
- Ad stacking – where multiple ads are layered in a single slot, making most of them invisible but still chargeable
AI-driven environments can make these frauds harder to detect, as malicious actors often use automated systems to mimic real user behaviour.
Closely related is brand safety: ensuring your ads don’t appear on websites with inappropriate, offensive or misleading content. AI tools can help assess content context, but they’re not infallible – and without legal protections in place, your brand may be left exposed.
How do you deal with advertising fraud and brand protection?
Combating fraud and protecting your brand involves a combination of technology, legal controls, and good practice. This includes:
- Using verified platforms and certified partners
- Monitoring for unusual traffic patterns
- Reviewing and negotiating contract terms to ensure fraud prevention and brand safety obligations
- Including clear audit rights, data handling rules and termination clauses in agreements
- Ensuring metrics and performance indicators are transparent and mutually agreed
Contracts should clearly state the responsibilities of each party in the supply chain, particularly around brand safety, content integrity and fraud prevention. AI may play a helpful role in detection, but legal clarity remains essential.
Other points to note
Before launching any digital advertising, it’s crucial to secure your intellectual property rights. This includes:
- Trade marks
- Copyrights
- Design rights
- Domain names
- Patents
These rights protect your brand and content across platforms. Our IP strategy service can help you identify, protect and maximise the value of your IP before it’s used in a high-visibility campaign.
Legal support to protect your digital advertising strategy
Digital and programmatic advertising offer powerful ways to reach customers, but they come with serious legal risks – especially when powered by AI. From data protection to brand safety, fraud prevention to contract structure, these issues can impact not just your compliance, but your reputation and return on investment.
Whether you’re planning your first AI-driven campaign or refining existing AdTech contracts, our commercial law solicitors are here to help. We work with businesses across sectors to design advertising strategies that are robust, clear and legally sound – so you can focus on growth with confidence.
