The Hidden Forces and Harms of the Digital Advertising Ecosystem: Briefing Paper for UK Parliamentary Select Committee Inquiry, Supplementary written evidence by Dr Karen Middleton (SMH0077)

The digital advertising ecosystem plays a crucial role in funding online content. However, its opaque structure can also inadvertently incentivise fraud, lies, consumer privacy violations and content which causes harm. Transparent supply chains, which minimise information pollution and promote information integrity around key topics, will create more healthy incentives for the production of quality content, and restore trust in business. This paper examines structural flaws, economic and social harms, regulatory gaps, and calls for greater oversight to ensure transparency and accountability. The digital advertising ecosystem requires urgent regulatory intervention to address its role in threatening information integrity, fraud, and harmful content. Strengthening the ASA’s remit, increasing transparency, and holding platforms accountable through co-regulation will create a safer and more responsible digital advertising environment. Policymakers must act swiftly to mitigate these risks and ensure greater accountability in the sector.