With the growing demand from consumers for products, there also comes accelerated growth in the digital advertising industry, and so does its environmental impact. With increasing reliance on data centres, programmatic ad bidding, and content delivery networks (CDNs), adtech is becoming a significant contributor to global carbon emissions. The average carbon footprint for a person in the US is 16 tonnes, according to The Nature Conservancy. Furthermore, an average digital advertising campaign released 5.4 metric tonnes of carbon into the atmosphere, according to Statista. However, industry leaders are starting to address these concerns with innovative strategies and technologies aimed at reducing their carbon footprints. “Reducing carbon footprint is still at a nascent stage in the adtech space, especially in the Indian market. Our focus has been on data optimisation and minimisation, content optimisation, and focused ad targeting to reduce the carbon footprint to a certain extent,” Mihir Mehta, managing partner, 0101, told BrandWagon Online.
What exactly is the carbon footprint?
The Information and Communication Technology (ICT) sector, which encompasses adtech, contributes approximately two to four percent of global CO2 emissions, according to experts. Within this sector, data centres account for roughly 1-2% of global energy consumption, with adtech contributing a notable portion through programmatic bidding and content delivery. Research suggests that digital advertising alone may contribute up to 10% of the ICT sector’s emissions, translating to around 0.2-0.4% of global CO2 emissions. For perspective, a single ad impression can emit between one and seven grams of CO2, depending on factors like ad format and complexity.
Mehta highlighted steps such as using green data centres powered by renewable energy, compressing ad content, and working with sustainable partners as part of their strategy. Although 0101 has not yet begun measuring its carbon footprint, Mehta outlines their goal for 2025-26 to start evaluating it. “Our strategy involves tracking server and CDN usage, performing data transfer calculations, and collaborating with sustainability measurement platforms such as Scope3 and Good-Loop to accurately assess the carbon impact of our ad campaigns,” Mehta added.
It is believed that artificial Intelligence (AI) and machine learning are playing a crucial role in optimising ad delivery while reducing energy consumption. AI can enhance efficient ad targeting, predictive bidding models, and intelligent load distribution. “AI-driven algorithms can compress ads, especially video, which reduces the amount of data that needs to be delivered,” Mehta cited. This not only optimises ad performance but also contributes to lower energy consumption.
AI can also help create more energy-efficient models and reduce data processing overhead. “AI models can improve the efficiency of real-time bidding and content personalization processes, minimising unnecessary data collection and processing,” Anup Garg, founder and director, World of Circular Economy (WOCE), said. WOCE uses tools like esgpro.ai to measure greenhouse gas emissions, breaking down Scope 1, 2, and 3 emissions to better understand the carbon impact of their operations, he added. From what is understood, WOCE’s approach includes tracking direct emissions from company-owned data centres (Scope 1), indirect emissions from purchased electricity (Scope 2), and other indirect emissions across the value chain (Scope 3). This comprehensive measurement allows them to assess and address the carbon footprint of various adtech activities, including programmatic ad bidding, CDN usage, and end-user device energy consumption.
As the digital advertising industry continues to evolve, so too will its strategies for reducing carbon emissions. By embracing sustainable practices, optimising data usage, and leveraging AI technologies, adtech companies can significantly reduce their environmental impact. The industry’s shift towards more transparent and eco-friendly practices will be crucial in addressing the growing concerns of climate change and ensuring a sustainable future for digital advertising.
In conclusion, while the ad tech industry faces challenges in minimising its carbon footprint, the combined efforts of key players and innovative technologies provide a promising path forward. By focusing on sustainability and measurement, the industry can make meaningful strides in reducing its environmental impact and contributing to a greener digital ecosystem.