Current Standards in Sustainable Advertising and Next Steps

In the digital advertising industry, sustainability is a key focus, with a typical ad campaign emitting around 5.4 tons of CO2  (as shared by IAB Europe).

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With stakeholders increasingly demanding transparency and accountability, advertisers are compelled to integrate sustainability into their core operations. This shift is not just about meeting regulatory requirements but also about responding to consumer expectations and demonstrating genuine commitment to environmental stewardship. Within the dynamic realm of advertising, companies are more and more under pressure to correctly report their Scope 3 emissions.

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Scope 1, 2, and 3 serve as classification frameworks utilized to categorize the diverse carbon emissions originating from a company's activities and its entire value chain. These categorizations were first introduced within the Greenhouse Gas Protocol of 2001 and have since evolved into the cornerstone of compulsory greenhouse gas disclosure.

• Scope 1 emissions encompass the direct greenhouse gas emissions originating from a company's operations, such as those emitted by its boilers and vehicles.
• In contrast, Scope 2 emissions are indirect, arising from the company's consumption of electricity or energy for heating and cooling.
• Scope 3 emissions go beyond direct and indirect classification, encompassing the entirety of a company's carbon footprint along its value chain and representing a comprehensive measure of a business' environmental impact, also in the advertising industry.

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The latest sustainability standards for digital advertising are being developed by the Global Alliance for Responsible Media (GARM) and Ad Net Zero in the form of the Global Media Sustainability Framework. This framework aims to measure and report carbon emissions produced from digital advertising, providing guidance for increasing transparency and disclosure around companies' carbon emissions data. The full set of guidelines is due to be published in time for the Cannes Lions Festival in June 2024, with solutions being distributed on a rolling basis between now and then as they are completed. The standards will be voluntary for companies to implement and follow, but they are expected to be widely adopted over time, especially by those on the buy-side who have already adopted GARM's Brand Safety Floor and Suitability Framework.

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Sustainable Advertising is a Common Challenge in the Industry

While the industry is waiting for the upcoming Cannes Lions Festival to mark a significant step forward in addressing environmental concerns within the advertising sector, all stakeholders keep working separately to address its part and moving further on the “green journey”.

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Ad-tech vendors, trading desks and ad networks are at the vanguard of this evolution, probing innovative business paradigms such as deploying lighter creatives to champion decarbonization initiatives. Gaining insight into Scope 3 emissions promises to revolutionize investment strategies, empowering advertisers and media agencies to prioritize carbon mitigation. By forging alliances with low-carbon projects and suppliers, providers are spearheading the transition towards a sustainable economy.

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Publishers are also recalibrating their monetization strategies, scrutinizing emissions footprints to uncover avenues for energy optimization. This quest not only augments revenue streams but also positions them as pioneers in eco-conscious advertising, aligning with evolving brand imperatives.

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The future of Brands hinges on a trifecta of transparency, data-driven insights, and emissions-conscious strategies. Marketers are poised to transcend conventional metrics, demanding not just campaign efficacy but also environmental stewardship. By integrating energy-efficient practices into campaigns, brands champion a holistic approach to sustainability, transcending the digital realm to encompass all initiatives. Agencies play a pivotal role in this transition, supporting campaigns that resonate with environmentally conscious consumers and opting for digital platforms with a lower carbon footprint.

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Opportunities for a “Green Programmatic”

Digital and especially Programmatic Advertising has been highly investigated around its carbon footprint. The recent ANA Programmatic Media Supply Chain Transparency Study highlighted several opportunities to enhance the sustainability of programmatic media buys.

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MFA (Made for Advertising) sites have been identified as significant contributors to carbon emissions, generating 26% more emissions than non-MFA inventory (data from Scope 3). This is attributed to their multiple ad calls to various demand sources, leading to carbon waste. The general recommendation for the market is to reduce reliance on MFA sites to mitigate environmental impact.  

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Another key suggestion is to prioritize direct inventory supply paths over indirect ones. Direct paths not only minimize costs but also uphold filtration measures for viewability, brand safety, and inclusion. Additionally, each additional hop in the supply chain increases carbon footprint, emphasizing the importance of streamlining transactions to reduce environmental impact.  

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Working with trusted sellers rather than resellers is also advocated. Trusted sellers transact directly with buyers, avoiding unnecessary markups and carbon waste associated with reseller paths. Moreover, partnering with SSPs (Supply-Side Platforms) that have direct connections to publishers on the trusted seller list can further reduce carbon footprint by eliminating unnecessary intermediaries. Lastly, concentrating programmatic media activity on a smaller number of curated websites is recommended as an impactful strategy to decrease carbon emissions. However, advertisers also need to take into account that limiting a campaign’s outreach might also impact its performance. Clear insights into the performance of each channel and close tracking is mandatory to maintain a campaign’s success.

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Meaningful Carbon Reduction is Achievable Today

As shared by Scope3, open access to emissions data is the first step towards a more sustainable advertising industry. The latest State of Sustainable Advertising Report presents the average grams of carbon emissions per 1000 impressions (gCO2PM) by country across three digital channels: display, app, and streaming. Wide ranges of gCO2PM are common, with some countries averaging in the low- to mid-200s and others as high as 700+ for selected channels (Web Display, Streaming Video, App Display).

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Another key finding is linked to ad fraud and bot traffic: eliminating such climate risk inventory would decrease gCO2PM by more than 25% in every country. In the US, 58.8 grams of CO2 emissions are wasted on fraud for every 1000 impressions.

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The opportunity in 2024 is clear: meaningful carbon reduction is achievable today by simply taking action and leveraging available data and tools to simplify supply paths and complexity and selecting supportive partners and vendors.

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MINT is responding to this challenge with a service that allows brands and agencies to calculate the greenhouse gas emissions and offset them by issuing a certificate. Offsetting takes place through investments in certified offset projects. The calculation is based on scientific methodology provided by ClimatePartner, a company committed to globally improving the living conditions of people, animals, and our biosphere.

As we look ahead, let's continue to advocate for practices that prioritize the planet's well-being, striving for advertising that leaves a lighter footprint on our Earth. May each campaign, each ad, contribute not only to brand success but also to a healthier, greener world for generations to come.