Social media advertising is an indispensable part of the modern marketing mix. But behind the powerful targeting capabilities and enormous reach lie legal risks that marketers cannot afford to ignore. In this article, we examine the most important legal pitfalls and how to avoid them.

Data Protection: GDPR

The General Data Protection Regulation (GDPR) has fundamentally changed how companies may collect and use personal data for advertising purposes. The key areas of concern are:

  • Consent — Explicit consent is required for placing tracking cookies and collecting user data
  • Custom audiences — Uploading customer lists to social media platforms requires a valid legal basis
  • Retargeting — Retargeting campaigns must comply with cookie legislation and GDPR requirements
  • Data Processing Agreements — A data processing agreement must be in place with each social media platform

Impact on Marketing Strategies

Increasing regulation has direct consequences for how marketers set up and execute their campaigns:

  • The loss of third-party cookies is forcing marketers to switch to first-party data strategies
  • Lookalike audiences are becoming less accurate due to data-sharing restrictions
  • Transparency in advertising is becoming increasingly important — think of labeling sponsored content and influencer collaborations
  • The Digital Services Act (DSA) sets new requirements for online advertising transparency within the EU

Responsibilities of Marketers

As a marketer, you bear significant responsibility for ensuring your advertising activities are legally compliant. Here are concrete steps you can take:

Collaborate with Legal Teams

Ensure regular consultation with your legal department or an external privacy specialist. Have new campaign types and targeting strategies reviewed before you launch them.

Review Your Tools and Platforms

Regularly check whether the tools and platforms you use comply with the latest privacy regulations. Pay specific attention to data processing agreements, data storage locations, and security measures.

Create Clear Guidelines

Establish internal guidelines for social media advertising that take into account:

  • Correctly labeling sponsored content
  • Proper procedures for collecting and using customer data
  • Transparency requirements for influencer collaborations
  • Documentation of consents and legal bases

By proactively addressing the legal aspects of social media advertising, you not only protect your organization from fines and reputational damage, but also build trust with your target audience.