No, I don't think that is possible. This would require some scripting, we could either create a script that compliments the native data merge functionality or design a custom data merge based on how much custom control is needed for the workflow
Yes, the solution is to name the placeholder frames on the DataMerge template and then execute a script on the merged document. However, toggling layers based on each record's contents likely will not achieve the desired result. You'd need to toggle visibility of individual page items on each page, I'm thinking.
I think turning on and of layers based on an item in a single record would be dangerous. It will not affect the selected item, but the whole document and you get surely unwanted results.
You're right, turning off layers is probably not the right approach. But you can certainly toggle visibility on distinct page items and/or remove page items on other layers per page based on a page's contents. Never say never; just about anything can be done via automation. It's just about finding the right solution to the problem.
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