Carbon-Neutral Clicks: A Guide to Reducing Your Online Advertising Footprin
The move to make online marketing carbon neutral is gaining momentum as the digital advertising industry faces increasing scrutiny for its significant carbon footprint. A
recent study by media investment analysis firm Ebiquity PLC and Scope3 PBC highlights the amount of carbon emissions generated by digital advertising, with roughly 15% of ad spending going to low-quality websites that generate high carbon emissions. As the world becomes more digital, it's crucial for advertisers to take steps to reduce their impact on the environment and build trust with consumers. From adaptive streaming technology to investing in high-quality journalism, there are numerous
ways to make online marketing more carbon neutral and environmentally friendly.
As the world becomes increasingly digital, the impact of online advertising on the environment is becoming a growing concern. The carbon footprint of digital advertising is significant, with a typical digital ad campaign for
a single brand producing hundreds of tons of carbon dioxide. This is why the move to make online marketing carbon neutral is gaining momentum, with industry players exploring ways to reduce their impact on the environment. A recent study by media investment analysis firm Ebiquity PLC and Scope3 PBC has highlighted the amount of carbon emissions generated by digital advertising. The study
examined 116 billion digital display ad impressions valued at $375 million from 43 advertisers in 11 global markets in 2021 and 2022. It estimated the energy it takes to deliver an ad impression by looking at factors such as auctions and emissions from the end-user's device. The study found that roughly 15% of ad spending goes to so-called made-for-advertising websites that generate high
carbon emissions. These sites crowd the screen with ads and low-quality content, and they often involve ad-tech intermediaries that offer services such as matching marketers with particular target audiences. The placements are often made inadvertently, and brands don't seek to advertise on these sites. The companies behind the study recommend reallocating ad budgets to web publishers with
lower carbon footprints. The consumer experience on made-for-advertising sites is poor, as is the effectiveness of advertising on them. By investing in high-quality journalism and avoiding low-quality websites, advertisers can reduce their carbon footprint and have a more positive impact on the environment. The advertising industry consumes a significant amount of energy, leading to carbon
emissions. Many websites trigger automated auctions for various ad spaces every time a consumer arrives on one of their pages, involving ad-tech intermediaries that offer services such as matching marketers with particular target audiences. It's difficult to calculate just how much electricity online advertising consumes, but a study published in 2018 estimated that 10% of the energy usage of the internet results from online ads. The impact of digital advertising on the environment goes largely unnoticed by consumers, but it's essential to consider the amount of energy consumed by our digital devices and the internet, and the carbon emissions associated with them. As we become more reliant on technology, it's increasingly important to take steps to reduce our carbon footprint. To achieve carbon neutrality in online advertising, it's important to identify the main sources of emissions in the digital ad supply chain. These include the production of ad creatives, programmatic ad transactions, ad targeting and measurement, and the delivery of ads across various platforms. Advertisers can take steps to reduce their carbon footprint by localizing
ad production to reduce travel-related carbon emissions, using 3D modeling animation instead of video shooting to minimize the CO2 emissions produced by production crew travels and utilized equipment, producing shorter video and image ads to reduce the size of the files and the carbon emissions associated with them, and avoiding low-quality websites that generate high carbon emissions. One
innovative solution that has already been implemented by OpenX Media LatAm and SeenThis is adaptive streaming technology. This technology uses lower data transfer on ad campaigns compared to sending a video of corresponding quality using conventional technology, resulting in a smaller carbon footprint. The technology was used to stream Coca-Cola and Sprite video campaigns as display banners regionally, including markets in Mexico, Colombia, Argentina, and more. The initial 23.5 million video ad
impressions were estimated to be 25% lower than running video of corresponding quality using conventional ad serving technology, resulting in avoided CO2 emissions. The move towards carbon neutrality in online advertising is not just about being environmentally friendly – it's also about building trust with consumers. As people become more aware of their carbon footprint, they are likely to
favor brands that take steps to reduce their impact on the environment. The advertising industry has a responsibility to be more transparent about the environmental impact of their campaigns and to take action to reduce their carbon footprint. Consumers are increasingly concerned about climate change, and they are willing to take action to reduce their impact on the environment. According to
a study by Nielsen, 81% of global consumers feel strongly that companies should help improve the environment. Consumers are also willing to pay more for sustainable products and services, with 73% of global consumers saying they would change their consumption habits to reduce their environmental impact. For advertisers, this means that taking steps towards carbon neutrality is not just the
right thing to do – it's also good for business. By reducing their carbon footprint, advertisers can attract environmentally conscious consumers and build a positive reputation for their brand. The advertising industry has made some progress towards reducing its carbon footprint in recent years, but there is still a long way to go. In 2021, the World Federation of Advertisers (WFA) launched
a global framework to reduce the carbon footprint of the advertising industry. The framework includes guidelines for measuring and reporting carbon emissions, setting targets for emissions reductions, and implementing sustainable practices across the advertising supply chain. The WFA's framework is a step in the right direction, but more needs to be done to achieve carbon neutrality in
online advertising. The industry needs to work together to develop innovative solutions that reduce the carbon footprint of digital advertising, such as adaptive streaming technology. Advertisers also need to take responsibility for their impact on the environment and take action to reduce their carbon footprint. One challenge in achieving carbon neutrality in online advertising is the lack
of transparency in the supply chain. Advertisers often work with multiple intermediaries, making it difficult to track the carbon emissions associated with each campaign. To address this issue, the industry needs to develop standardized reporting methods and work together to share data on carbon emissions. Another challenge is the lack of consumer awareness about the carbon footprint of
digital advertising. Many consumers are unaware of the impact of their digital devices on the environment, and they may not realize that their online activity generates carbon emissions. To address this issue, advertisers need to be more transparent about the environmental impact of their campaigns and educate consumers about ways to reduce their carbon footprint. The move to carbon neutral
is an important step towards reducing the advertising industry's impact on the environment. Advertisers have a responsibility to take action to reduce their carbon footprint and build trust with environmentally conscious consumers. By working together and developing innovative solutions, the advertising industry can achieve carbon neutrality and contribute to a more sustainable future. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
Affiliate marketing, the awkward silo of advertising that couldn't be targeted to specific users, is getting a makeover. Rakuten Advertising has launched Audience Engine, an optimization product that treats affiliate more like search and social media, allowing advertisers to set their acquisition rates and
commission structures for specific audience targets or types of audience segments. By embracing online shopping trends, Rakuten is tapping into a new world of publisher first-party data, while the publishers in the Audience Engine program will direct traffic and valuable first-party customer data back to the brand. After all, "a great aspect of the affiliate industry is that it’s the one transparent channel and, therefore, low risk."
Instagram is rebranding Branded Content Ads as
Partnership Ads and making updates to its policies around affiliate marketing to encourage brands and creators to partner together on ads. Partnership Ads will allow brands to promote various types of organic Instagram content as ads, including branded content with the paid partnership label, @mentions, people tags, and product tags. Advertisers will be able to create new partnership ads in Ads Manager without an existing post, making partnership ads easier to use. The new changes aim
to make Partnership Ads the most performant and transparent way for advertisers and their partners to run ads on the app.
User-generated videos, also known as creator-driven videos, are being treated like Hollywood-produced video content by agencies and brand executives who purchase digital video ads, according to a new report by the Interactive Advertising Bureau (IAB). The report revealed that 64% of
TV/video buyers consider creator-driven videos to be premium, with the largest-spending buyers ($50 million or more in annual media spend) being even more likely to agree (69%). Consumers tend to view little distinction between creator and professional content, which is reflected in the survey findings that 65% of buyers are moving budgets between UGC and professionally produced videos, and 66% are using the same measurement approaches for both types of content.
On a recent episode of Brave Commerce, Sandie Hawkins, the General Manager of US ecommerce at TikTok, discussed the importance of including TikTok in a brand's marketing strategy. Hawkins explained that TikTok's community commerce approach brings people together to discover products through word-of-mouth, which is a powerful tool for brands. She emphasized that the commerce mindset is already present on the platform and that TikTok users are 1.5 times
more likely to convert compared to users on other platforms. Hawkins also discussed how TikTok is constantly testing and learning from new approaches, such as affiliate marketing, to improve its commerce strategy. Looking to the future, TikTok is focused on building a seamless US marketplace where both community and creators are valued.
The Federal Trade Commission (FTC) has
urged companies deploying AI tools to retain personnel responsible for ethics and responsibility for AI and engineering. This comes as concerns grow around the impact of AI and generative AI tools on consumers, particularly their ability to influence beliefs, emotions and behaviours. The FTC has previously focused on AI deception and the use of generative AI for fraud, as well as tools that can be biased or discriminatory. Now, the FTC has warned about the potential for generative AI to
steer people unfairly into harmful decisions related to areas such as finances, health, education, housing and employment.
Mixpanel, a product analytics company, has launched a new product called Mixpanel Marketing Analytics, aimed at making it easier for marketing teams to access and use product data to better target and understand customers. According to CEO Amir Movafaghi, Mixpanel Marketing Analytics differentiates itself from competitor tools by providing
crucial conversion information that other traffic analytics tools typically lack. The new product allows marketing teams to get acquisition data and campaign performance information directly from Mixpanel, simplifying querying and data use for each role. The tool is designed to work closely with marketing automation tools, making it possible to use Mixpanel data to drive email and ad targeting. Mixpanel Marketing Analytics is available to Mixpanel subscribers at no extra charge.
There's been a lot of buzz about whether AI will take over digital marketing jobs, but the reality is that AI is a powerful tool that can save time and money while providing many benefits for digital marketers. With its ability to analyze large amounts of data, identify patterns, and make predictions, AI can optimize ad campaigns, provide personalized marketing messages, and even detect fraudulent activity.
However, it's important to remember that AI can't replace human creativity and strategic thinking, and marketers should use AI in combination with human insights and perspectives. By finding the right balance between human and AI, digital marketers can create campaigns that resonate with diverse audiences and achieve their goals.
The Federal Trade Commission (FTC) has proposed new restrictions on Meta Platforms,
owner of Facebook, including preventing the company from releasing new products until it can demonstrate that its privacy program is in compliance with past FTC orders. Additionally, the agency has called for Meta to be blocked from profiting off data it collects on users under the age of 18. The FTC accused Meta of violating a 2020 privacy order and repeatedly breaking its privacy promises. These restrictions could affect Meta's ability to introduce new products and could hurt its
advertising revenue. However, the majority of Meta's ad revenue is unlikely to come from advertising targeting children.
According to a report by the Interactive Advertising Bureau (IAB), digital video advertising spending increased 21% to $47.1bn in 2022 and is expected to rise by another 17% to $55.2bn in 2023. However, the report showed that there is still a lack of consensus on key
issues surrounding how the TV/video advertising marketplace is transacted, measured and defined. Almost two-thirds (64%) of TV/video buyers agreed that creator-driven video can be considered premium, while 81% of TV/video buyers want two or more unified currencies for impression measurement. Addressable media channels such as social video and connected TV were also prioritised.
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INSIDE AMAZON ADS' CASH COW
Amazon is one of
the world’s largest companies, with operations spanning across various industries. One of its most promising business segments is advertising. The company’s advertising services division generated $9.51 billion in revenue in the first quarter of 2023, up from $7.87 billion in the same period in the previous year. This represents a 23% gain, excluding foreign currency. The growth in Amazon’s
advertising business can be attributed to its ongoing machine-learning investments, which help customers see relevant information when they engage with the company. This delivers unusually strong results for brands, as CEO Andy Jassy noted in the company’s announcement. . READ ENTIRE STORY
THE CZAR OF TCPA DEFENSE: ERIC TROUTMAN’S REIGN OF LITIGATION STRATEGY
Eric Troutman, commonly known as “the Czar” in certain legal circles, is one of the country’s top class action defense lawyers and a nationally recognized expert in Telephone Consumer Protection Act (TCPA) litigation and compliance. His deep experience and encyclopedic knowledge of the TCPA landscape make him an invaluable resource to institutional compliance teams struggling to comply with the shifting regulatory landscape. Eric Troutman is well known for finding
creative solutions to complex legal problems and has earned numerous first-in-the-nation results and precedent-setting cases for his clients. READ ENTIRE STORY
KPIS THAT ACTUALLY MATTER: A GUIDE TO PROGRAMMATIC ADVERTISING SUCCESS
The world of programmatic advertising can be overwhelming, with a seemingly endless array of metrics to choose from. It’s easy to fall into the trap of measuring vanity metrics that don’t provide any real insight into the success of your campaign. But fear not, my dear reader, for I am here to guide you through the world of programmatic KPIs and show you which metrics to focus on to ensure your campaign’s success. . READ MORE OF THIS STORY
LIES, DAMN LIES, AND ADVERTISEMENTS: FTC SENDS
WARNING TO GWYNETH PALTROWThe Federal Trade Commission (FTC) has issued a warning to advertisers, urging them to back up their product claims or face steep civil penalties. In notices sent to 670 companies, the FTC stated that companies are required to provide “reliable evidence” to back up their product claims, a requirement that has been in place for some time. However, many advertisers continue to make
unsupported statements and false claims about the evidence they have.. READ THE FULL ARTICLE
COLLABORATION IS KEY: UNLOCKING THE POTENTIAL OF FIRST- AND SECOND-PARTY DATA
STRATEGIES
The age of relying on third-party data for media buying may be coming to a close, but don't count out the power of collaboration just yet. Data clean rooms (DCRs) have emerged as a popular avenue for brands to uncover valuable insights, but they're not the end-all-be-all solution to marketing strategies in the face of a looming recession. While a DCR can help match audiences and allow brands to... READ MORE
DAVE MORGAN’S CRYSTAL BALL: HOW NETFLIX’S AD TIER WILL SHAPE THE VIDEO AD
LANDSCAPE
As Netflix dives into the realm of ad-supported streaming, it’s clear that the video advertising landscape is about to experience a seismic shift. With the streaming giant making its move, we sat down with Dave Morgan, CEO of Simulmedia, to discuss how Netflix’s new tier will impact the industry and what it means for advertisers,
long-form video content, and the advertising world at large. In light of the tough ad economy in 2023, Morgan believes that Netflix’s ad-supported tier is well-positioned to succeed. “It still has limited inventory as the ad tier just begins to scale. Thus, it doesn’t need huge
commitments from advertisers, just modest commitments from a number of the top brand advertisers, and it doesn’t need to trade piercing for volume like fully scaled players need to when budgets are under pressure,” he says. READ MORE
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