Does the advertising industry take sustainability seriously?

In an era when climate change is looming and consumers are increasingly demanding ethical responsibility, the advertising industry is at a crossroads: does it prioritize profit or the planet? On Earth Day we delve into this critical question and explore the complex relationship between advertising and environmental responsibility.

Despite growing awareness, skeptics argue that greenwashing often takes precedence over genuine commitment to sustainability. Yet, amid the cynicism, there are glimmers of hope as some brands and agencies pioneer eco-friendly practices and advocate for systemic change.

We asked an incredible global panel of industry experts the big question and found out whether they feel the media ecosystem views sustainability as a symbolic gesture or a fundamental ethos.

Advertisers and their partners must commit to transparency

In recent years, and as more and more global standards come into effect, there has been significant momentum toward sustainability efforts in advertising technology and media. According to recent research, 90% of European marketers measure CO2 emissions, up from 60% in 2022.

To ensure the momentum continues, advertisers and their partners must commit to transparency when it comes to their emissions reporting. We can’t expect perfection overnight, but by working together, ensuring that carbon reduction measures are realistic and independently verifying sustainability reporting, we can ensure the sector is held accountable and avoids greenwashing.

Amanda Forrester, vice president of marketing, OpenX

Advertising companies can embed performance-based contributions to positive impact in practice

Brands are challenging the advertising industry on sustainability. Unfortunately, the dominant response was largely beside the point. More and more ad tech companies and agencies are measuring the carbon footprint of placing an ad on a phone, realizing that they won’t stop doing so if the footprint becomes too large.

We face an annual financing gap of $3.4 trillion in the UN SDGs. Instead of spending money on measuring something they won’t change, advertising companies can embed performance-based contributions to positive real-world impact, aligned to the brand, directly into the ad, driving audience engagement and will increase ad performance. That is what companies like Handprint and Good-Loop make possible, for example.

Simon Schillebeeckx, Founder and Chief Vision Officer, Handafdruk

Sustainability must become a primary KPI

Incredibly serious for some. Of course, much more can be done, and at an accelerated pace. Sustainability must play a central role and become a primary KPI. Where working with sustainable suppliers becomes as mandatory a requirement as working in brand-safe environments. Buyers need education and knowledge resources on who is and is not sustainable in their supply chain. Meanwhile, the supply chain cleanup process has begun and those who have taken care of their own sustainability should benefit from the increased demand for their services. If we all act quickly, we will be on the cusp of industry-wide changes.

Hannah Mirza, founder and CEO of a responsible marketing agency

Tunnel vision of short-term profits perpetuates environmental impacts and risks that alienate environmentally conscious consumers

The advertising industry often views sustainability as a peripheral issue, an optional enhancement rather than a necessity for the core business. This perception is due to the belief that advertising’s impact on the environment is minimal compared to heavier emitting functions such as logistics and manufacturing. As a result, sustainability initiatives in advertising are often neglected amid the economic pressures of today’s marketplace, where immediate financial returns dominate business priorities. This tunnel vision for short-term profits not only perpetuates environmental neglect, but also risks alienating environmentally conscious consumers, potentially hindering businesses in the long run.

Dhruv Menon, Head of Digital Media, Mindshare

The industry must embed sustainability as a core operational ethos

The advertising industry is at a crossroads of sustainability. While there is growing awareness and some notable progress, especially with initiatives like Ad Net Zero and GARM standards, there is still much to be done. The industry must move from seeing sustainability as a marketing angle to embedding it as a core ethos of business operations. This requires the integration of real, measurable sustainability actions at all levels of strategy and execution. Regulation and stronger accountability measures are key to pushing the sector from mere compliance to real engagement. We need a shift towards sustainability that is as innovative as it is integral.

Guillaume Grimbert, co-founder and CEO of Greenbids

We need to see more action and urgency

Often cited as a top priority by key players, there is no doubt that the advertising industry is taking sustainability more seriously. However, this must be accompanied by more action and urgency, otherwise we risk warm words turning into even more hot air – the last thing the planet needs.

There always seems to be a good reason NOT to actively reduce emissions. But we’re running out of time. There is an urgent need for companies across the industry to adopt solutions and best practices at scale to dramatically reduce Adland’s impact on the environment.

Vincent Villaret, CEO and founder of IMPACT+

We must remain committed to sustainable change

As advertising emissions remain high, it may be difficult to remain optimistic about the sector’s ability to deliver efficient and net-zero services in the near term. But we must not let these setbacks derail progress. The industry can reduce its impact if all players remain committed to sustainable change, including better standardization of CO2e metrics, collaboration on streamlined ad delivery and data transfer, broader adoption of green renewable energy infrastructure, and transparent reporting that drives informed decisions makes possible.

Antoine Mesuré, Chief HR Officer at Directly

Adopting sustainable practices has already made a difference

While we will rightly discuss how far the advertising industry needs to go on Earth Day, it is also crucial to highlight how much of a difference we have made by adopting responsible practices. At the technology level, suppliers achieve significant reductions in CO2 emissions by switching to data centers that use renewable energy. In economic terms, media buyers have begun to use their purchasing power to do good – including embracing trading tools that allow them to transact against environmental targets and focus budgets on publishers offering low-impact inventory. However small they may seem, these incremental steps are essential to fuel the positive motivation that helps maintain sustainable momentum.

Emma Newman, CRO EMEA, PubMatic

More efficient targeting can help reduce carbon emissions

The demise of cookie-based targeting has led to a shift away from disallowed data in the advertising industry, driving AI-powered contextual and attention-based optimization. More efficient targeting helps reduce carbon emissions and by optimizing existing data processing technologies through AI, brands can do more with less. The industry’s focus now must be on clarifying the standards around calculating emissions, understanding who is responsible for them and recognizing which compensation schemes are appropriate.

Jordi Capdevila, VP Marketing, Seed tag

Assessing the carbon footprint is crucial

It is imperative to take action to reduce our industry’s significant environmental footprint. Assessing the carbon footprint of all operations, supply chains and media offerings is critical to identifying hotspots and enabling reduction strategies.

There is a spectrum of solutions that measure operational and campaign emissions, providing insight into CO2 emissions and comparison to benchmarks. Companies that do this will succeed in reducing carbon emissions within their operations and media plans, minimizing advertising waste and aligning with industry-wide sustainability goals.

Dean Nagib, UK Commercial Director, Azerion

Advertisers must adopt a ‘Less is More’ mentality

The advertising industry is focused on creating bigger and better solutions, but doesn’t always take environmental impact into account. By adopting a ‘less is more’ mentality, advertisers can take steps to become more sustainable – such as reducing unnecessary data storage and transfers, adopting sustainable cloud infrastructures and prioritizing quality over quantity in ad delivery – to have a significant impact on total emissions. while also increasing efficiency.

Rob Sewell, co-founder and CEO, SmartFrame technologies