How have GDPR regulations impacted digital advertising?

The correct choice highlights the central purpose of the General Data Protection Regulation (GDPR), which is to enforce stricter data protection and privacy laws across the European Union. GDPR sets a framework for how organizations handle personal data, emphasizing the rights of individuals regarding their information. This regulation mandates that advertisers must obtain clear consent from users before collecting and processing their personal data.

Additionally, it requires transparency in how data is collected, used, and shared. This has resulted in digital advertising strategies that prioritize user privacy, pushing advertisers to adopt more responsible data practices. Compliance with GDPR has significantly changed how businesses approach their advertising tactics, leading to a reliance on first-party data and a greater focus on trust-building with consumers.

While the other options might suggest potential consequences of GDPR, they do not accurately capture the regulation’s primary impact on digital advertising. The regulations have not created more lucrative opportunities, encouraged aggressive strategies, or eliminated competition; rather, they have shifted the landscape towards enhanced privacy and consent, positioning user data protection as a crucial component of digital advertising practices.