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Quick-Hit Guide to 2025 Ad Rules: FTC, AI & The End of Targeting

Are we entering a new era of digital advertising? With a fresh FTC administration and nonstop policy shifts from major platforms, it sure feels like it. Here’s what you need to know.

Welcome back to the latest edition of Funnel Vision, the weekly newsletter that puts performance creative & growth marketing in focus. Brought to you by the crew at Ready Set.

The record for reciting the most digits of Pi is held by Suresh Kumar Sharma, who recited 70,030 digits in 17 hours and 14 minutes. A feat that’s certainly impressive, but definitely irrational. Happy Pi Day!

Here’s what’s inside:

  • The FTC’s new agenda

  • AI & privacy in advertising

  • The future of ad targeting

Reading time: 4 minutes

Quick-Hit Guide to 2025 Ad Rules: FTC, AI & The End of Targeting

Keeping up with changing digital ad regulations may feel about as exciting as filing your taxes—but it’s just as necessary.

A new FTC administration is set to shake things up. Global privacy standards are leading to tightening policies across major ad platforms. AI-generated content is on the rise. Targeting is getting tougher by the day.

If it feels like a lot, that’s because it is. But don’t worry, we’ve got you covered.

Here’s your quick-hit guide to the latest rules & policies shaping digital advertising in 2025—and what you need to do now to stay ahead.

FTC: New administration, who dis?

There’s a new sheriff in town at the Federal Trade Commission.

In a recent interview, newly appointed FTC Chair Andrew Ferguson outlined his priorities:

✅ Aggressive antitrust action against Big Tech

✅ Clear, case-by-case enforcement, litigating only when confident of success and stepping aside otherwise

✅ A free-market approach aimed at protecting consumers and fostering dynamic economic growth

What advertisers need to watch

🔹 Data misuse, especially in sensitive areas. Expect tighter scrutiny on children’s data, health-related information, precise location tracking, and micro-targeting based on “sensitive” characteristics.

🔹 Shifting ad platform policies. With Big Tech firmly in the FTC’s crosshairs, expect changes to advertising rules and targeting capabilities as platforms respond to regulatory pressure. If you advertise heavily on these channels, prepare for potential disruptions.

🔹 Crackdown on deceptive advertising. The FTC is prioritizing clear-cut cases of misleading ads, testimonials, and consumer reviews.

💡Case in point: The FTC recently fined H&R Block $7M, ordering it to stop advertising practices it called “deceptive” and “unlawful”.

AI under the spotlight

Another hot-button issue in advertising right now: artificial intelligence.

While Ferguson’s FTC is signaling a “hands-off” approach to regulating AI innovation, they’re committed to cracking down on ads that deceive and mislead consumers—whether made by AI or not.

The use of AI in ads is also determined at the platform level. Recent developments to be aware of:

🔹 In May, 2024, TikTok began automatically labeling AI-generated content (AIGC) when uploaded from other platforms.

🔹 Google requires clear disclaimers for AI-altered political ads. This is currently limited to politics, but don't rule out more widespread application.

🔹 Meanwhile, Meta is full steam ahead on AI, actively nudging marketers to embrace their growing suite of AI ad tools; whether they like it or not.

Rules aside, advertisers should be mindful of the general vibe toward AI-generated content—which currently hovers somewhere between gas-station sushi and sketchy emails from foreign royalty.

Takeaway: Experiment with AI to scale creative and boost reach, but remember—the responsibility for compliance, transparency, and brand safety ultimately rests with you.

Platforms Tighten the Screws

Major digital ad platforms have all rolled out notable policy updates in the past several months. Here’s your ultra-quick update:

🔹 Meta (Facebook & Instagram)

Ultra-granular targeting options are gradually being phased out. Meta has limited how advertisers can use data around sensitive interests like health, finance, and politics. In the EU, the controversial "pay-or-consent" ad model (consent to your data being shared or pay for an ad-free Instagram) remains under scrutiny. 

Meta’s recent shifts all seemingly point to a future where ad targeting is increasingly taken out of marketer’s hands and left up to the powerful algorithm. 

🔹 TikTok

Teenagers (13-17) in the U.S. are officially off-limits for hyper-targeted TikTok ads. New privacy controls give users more control over the ads they see, potentially resulting in smaller custom audiences. Additionally, TikTok now requires clear labeling of AI-generated content (AIGC)—including ads.

🔹 Google/YouTube

The fate of third-party cookies is still up in the air after Google’s decision to drop long-help plans to deprecate cookies in favor of an opt-in approach to privacy. The expanding Ad Transparency Centre (Google’s version of the Meta Ad Library) puts the pressure on advertisers to ensure all creative is compliant and brand-safe. YouTube is rolling out an updated policy that caps impressions for “unqualified” advertisers until they establish a track record of compliance and quality.

What does it all mean?

We don’t claim to have a crystal ball, but here’s our read on what’s happening in the ad world.

The confluence of changing policies and regulations increasingly signals a paradigm shift in performance marketing—one where privacy, transparency, and creative excellence take center stage.  

  • The days of relying on ultra-granular targeting are long gone. 

  • Privacy rules and demand for authentic content are rewriting the performance marketing playbook.  

As platforms scale back detailed targeting, the real factor in campaign success will be how you communicate.

The vehicle to do this is your creative.

Brands that lead with original, engaging, and compliant creative will gain a competitive edge as algorithms become more sophisticated at delivering content to the right audience.  

The bottom line? Keep experimenting, stay compliant, and invest in creative that resonates—because in 2025, what you say matters more than ever.

Refer Ready Set to marketers in your network and get $1,000 if they become a client.

Thanks for reading!

That’s all for this week. Seeya next time 🫶 

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Dan Moran & Sam Makalou

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