06 February 2023 |
Media and Advertising Industry
The programmatic ecosystem is a complex network of simultaneous and instantaneous auctions occurring over digital ad space. While this has ultimately simplified & streamlined the process of buying digital ad space for advertisers, this does not come without a cost. The sheer scale of computing power required for the programmatic auction to take place is enough to make the ad tech space a significant contributor to carbon dioxide emissions.
A report by market research company Fifty-Five calculated that a mock digital advertising campaign would produce the equivalent of 16 American citizens’ carbon footprint. Further, the internet produces 4% of the world’s greenhouse gas emissions, which is even more than the aviation industry! Unsurprisingly, with climate change becoming evermore the topic on everyone’s lips – this has now reached the advertising industry. People are no longer wishing to understand climate change, but to do their part to act upon it.
So how can the advertising industry play its role to reduce CO2 emissions? AdTech companies can aim to reduce the size of files (such as creatives, for example) & infrastructure used within the programmatic auction ecosystem. This sacrifice will ultimately cut down any unnecessary use of file sharing & therefore emission. While it may seem like a small step, it is a giant leap in the right direction for an industry that has historically been portrayed as a lesser evil. Advertisers can also take responsibility for the environment by opting to work with companies that are focused on reducing their carbon footprint.
This year, Yahoo has announced they will be teaming up with ecological ad tech company Scope3. The partnership will work to facilitate a carbon-neutral PMP (private marketplace) environment in the Yahoo SSP (supply side platform). This will enable advertisers to buy carbon-neutral, green media products in one centralized location on Yahoo’s platform. For those companies wishing to take steps to meet sustainability goals, this partnership will make these goals more accessible and attainable.
The new PMP offering will be available globally through any DSP (demand side platform) that is connected to Yahoo’s SSP. “This adds another layer of choice and flexibility to our customers. Scope3 provides a measurement of each publisher’s carbon emissions within the PMPs we now offer, creating a clear path for advertisers to invest in these ad impressions while also rewarding publishers that are transitioning to greener, lower carbon footprints with greater demand for their supply.”
While there are certainly still leaps and bounds to be made in this industry – it is clear that environmental sustainability is beginning to become a priority in ad tech, and advertisers want in.
Reach out to our friendly and informative ADMATICian today to learn more!Next Article