The advertising industry has long been a significant contributor to global carbon emissions, with digital ad processes generating substantial energy use.
However, a new study from the Association of National Advertisers (ANA), which included data from major brands like Kroger and Coca-Cola, reveals that incorporating sustainability into media planning not only helps the environment but also allows marketers to achieve their key performance indicators (KPIs) earlier than expected.
The Carbon Cost of Advertising
According to the study, the scale of carbon emissions in advertising is staggering. Each 1,000 digital ad impressions can emit between 50 and 1,500 grams of carbon dioxide into the atmosphere, primarily due to the energy required by data centres.
The growing consumption of social video content adds further strain. Every minute of social video consumption results in 2.6 grams of carbon dioxide being released into the atmosphere, and with the average American watching an hour of social video daily, the environmental impact is enormous.
Despite the dire environmental consequences, the study emphasises that advertisers can reduce their carbon footprint by making simple adjustments during the media planning phase.
Furthermore, these sustainable changes do not negatively impact business performance – in fact, they can drive growth by enhancing efficiency.
The Business Case for Sustainable Advertising
The study found that sustainable media planning can help marketers reach their KPIs sooner, reduce wasted spending, and improve overall campaign effectiveness.
Leaders from participating brands like Coca-Cola, General Motors, and Mars discovered that even minor adjustments, such as avoiding low-quality ad placements and reducing waste in the supply chain, had a significant impact on both carbon emissions and business outcomes.
One of the most compelling findings of the study was that sustainable practices, such as opting out of paying for ads that go unseen, not only reduced carbon emissions but also allowed advertisers to refocus their budgets on high-quality sites and inventory.
This resulted in earlier KPI achievements and more efficient use of advertising budgets, demonstrating that sustainability can go hand in hand with performance.
Effective Strategies for Reducing Emissions
The study highlighted three key actions that were most effective in reducing emissions and improving the efficiency of advertising campaigns.
The first strategy involved adopting green media products or private marketplaces, which automatically select low-emissions inventory, allowing brands to reduce their environmental impact without sacrificing performance.
The second approach was to update inclusion lists to target only lower-emission inventory, eliminating harmful actors like Made-for-Ads (MFA) websites, which tend to drive higher emissions.
Finally, optimising exclusion lists to remove high-emission content helped reduce carbon costs, although this method alone yielded smaller reductions compared to the other strategies.
Brands that adopted these sustainable practices saw carbon cost reductions ranging from 3% to 36%. The most significant improvements came from those that embraced green media products and updated their inclusion lists.
On the other hand, companies that only optimised exclusion lists saw smaller, single-digit reductions.
A Path Forward for Sustainable Advertising
Based on the findings of the study, the ANA laid out a clear path forward for media buyers looking to reduce their carbon footprint while improving the effectiveness of their advertising campaigns.
The first step is to adopt tools that measure carbon emissions, which can help identify high-emission, low-performance inventory that can be cut from campaigns. This is crucial in understanding where emissions are occurring and how to address them.
Another important strategy is to adopt an activity-based measurement model rather than a traditional spend-based model. This shift allows advertisers to pinpoint specific campaign activities that are causing disproportionate emissions and adjust accordingly.
Additionally, advertisers should consider adopting automated green solutions, such as green media products and carefully curated inclusion and exclusion lists, to further reduce their carbon footprint.
Finally, eliminating MFA inventory, which often drives high emissions without delivering substantial business results, can greatly reduce unnecessary carbon costs.
Conclusion
The ANA’s Sustainability in Media Planning study, conducted in collaboration with Scope3, offers a compelling argument for why advertisers should incorporate sustainability into their media planning.
By making small yet meaningful adjustments – such as adopting green media solutions, optimising media lists, and focusing on low-emission inventory – brands can not only reduce their carbon footprint but also achieve their KPIs faster.
This demonstrates that it is possible to pursue environmental sustainability without sacrificing business performance, paving the way for a more eco-friendly future in advertising.
