The road to net zero is a long one. For the UK to hit its 2050 target, there must be a unified effort across all sectors to decarbonize. While highly visible polluters such as heavy industry and transport make up the lion’s share of emissions, we can’t let the invisible activities of the online world off the hook. One polluter we encounter every day but may never consider a carbon culprit is digital advertising.
For years, there has been a concerted effort to optimize the supply chain that powers digital advertising, but the barriers are stubborn and steep: the lack of transparency, the vast number of adtech intermediaries, the spend wasted on low-quality placements. Each of these challenges also drive up emissions, for a global CO2 bill of 7.2 million tons a year, all just to put an ad on your screen.
Programmatic advertising — the automated process for buying and selling ads — is particularly inefficient. Advertisers pour money into the system for the sole purpose of easily reaching consumers at scale, but an audit by the Association of National Advertisers found only 36 cents of every dollar spent reaches its intended destination.
This presents a unique opportunity to the industry: cut bloat in the advertising supply chain and you kill two birds with one stone: increasing campaign performance and reducing emissions at the same time. If there’s nothing but benefits to such optimizations, why haven’t they been achieved yet? It’s simple, we didn’t have AI.
Michael Hanbury-Williams
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UK Managing Director, Greenbids.
Cleaner, leaner programmatic advertising that delivers on its promise
At its heart, programmatic advertising is meant to streamline digital media buying by automating the process of placing ads in real-time. Instead of manually negotiating with individual publishers, advertisers use demand-side platforms (DSPs) to bid for ad placements as they become available across a vast network of websites and apps, who surface their available inventory on supply-side platforms (SSPs). This entire process happens in milliseconds.
Unfortunately, over time programmatic advertising has become a tangled web of intermediaries, inefficiencies, and hidden costs. The sheer number of players involved means budgets leak away before they reach publisher inventory, and every unnecessary transaction comes with its own little puff of CO2.
Worse still, the sheer volume of bid requests swarming the system is staggering; in the US alone, 647 times more bid requests are sent out every day than there are people in the country. And this pollution is not merely ‘digital’: audits have found that 60% of carbon emissions from programmatic advertising are generated during the ad selection process.
The signal-to-noise ratio is clearly way off, but machine learning and AI — perfectly suited to such messy mathematical challenges — can rebalance the scales. Instead of blindly spraying a “firehose” of requests — as the practice has been labelled — AI-powered bidding technologies take a more calculated approach. By “learning” from prior and real-time digital advertising campaign data, AI can map out the most efficient pathways for delivering ads, reducing unnecessary steps and ensuring more budgets are allocated to actual working media.
The best part? What’s good for the bottom line is also good for the planet: fewer wasted impressions mean lower costs and lower emissions; a rare win-win solution.
Emissions reductions aren’t just a happy accident of supply chain optimization, AI can also deliberately steer campaigns towards low-emission inventory using an array of real-time data signals. Factors like time of day, device type, Wi-Fi versus mobile connections, and even whether the local energy grid is running on renewables can all be accounted for; all without getting in the way of campaign KPIs.
AI’s predictive capabilities can even be trained to prevent unwanted and unintended downstream effects of optimization. For example, if you make the cost per impression cheaper, advertisers could by default buy more of them, causing a “rebound effect” where reducing costs ends up actually increasing overall emissions. AI can keep this unintended consequence in check, ensuring that absolute carbon emissions remain reduced.
Decarbonization so good even climate sceptics won’t resist
With AI taking over the number crunching, digital advertising can evolve beyond the inefficient, carbon-heavy machine it once was. Advertisers now have the means to make their campaigns work harder while using fewer resources. The old trade-off between performance and sustainability no longer applies.
For the first time, AI is enabling climate-conscious advertisers to set custom sustainability goals alongside traditional campaign metrics. Instead of just tracking cost-based performance or engagement metrics, brands can now measure carbon impact and actively work towards lower-emission media strategies without sacrificing results. But even if an advertiser doesn’t care about emissions, they’ll end up cutting them anyway in the pursuit of better performance and boosting the bottom line.
And the best is yet to come. AI isn’t a set and forget solution, it continuously learns and adapts, its scope and capabilities improving as it connects to more data sources, identifying patterns that humans would overlook. Over time, campaigns become even more efficient, with costs dropping and emissions shrinking further.
The impact of this technological revolution goes far beyond individual campaigns. As AI tools become more widespread, platforms and publishers will be incentivized to support more sustainable practices to avoid being left out of AI-optimized media plans. Demand for quality data to power this system will drag digital advertising towards total transparency, through which even more emissions savings can be uncovered.
The beauty of AI-driven programmatic optimization is that it makes doing the right thing the easy choice. As more brands and agencies realize that sustainability and profitability go hand-in-hand, the momentum will only grow. Thanks to AI, we finally have the tools to build a better, more sustainable future for digital media, one campaign at a time.
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