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Are You Prepared for Carbon-Neutrality Affecting Ad Tech?

What’s a misconception that you’re sick of hearing? 

We’ll go first: You have to bend your ethics for the sake of success, or high performance.  

As we speak, data centers and server farms are churning energy – the programmatic ecosystem undoubtedly contributes to the world's carbon footprint. 

But a carbon-neutral future in programmatic advertising is absolutely possible, in fact, it is necessary. 

There are many companies across the globe making their best effort to create products with the highest possible quality materials, making as minimal environmental impact as possible. 

We’re doing our part within the ad tech space, with a multi-pronged approach to carbon neutrality. 

This is our mantra moving forward and can be yours: You can achieve your marketing goals while minimizing your environmental impact. 

And we can help show you how. 

Remember the fundamentals 

Since much of programmatic is automated; real-time bidding to purchase ad space across various platforms, with up to date insights and optimizations available to implement fast, this involves a lot of energy. 

Here's a breakdown of the programmatic ecosystem:

  • Demand-Side Platforms (DSPs): These platforms act as the advertiser's control center, allowing them to manage budgets, set targeting parameters, and bid on ad inventory.
  • Supply-Side Platforms (SSPs): Publishers leverage SSPs to sell ad space on their websites and apps. They connect with DSPs to sell ad impressions to the highest bidder.
  • Ad Exchanges: These platforms act as a central marketplace where DSPs and SSPs connect to trade ad impressions in real-time.

By utilizing this ecosystem, programmatic advertising offers advertisers several crucial benefits:

  • Precise Targeting: Reach the right audience at the right time with laser-focused targeting capabilities.
  • Data-Driven Optimization: Campaign performance is constantly monitored and optimized based on real-time data, leading to better ROI.
  • Increased Efficiency: Automation streamlines campaign management, freeing up resources for other marketing initiatives.
  • Scalability: Easily adjust campaigns on-the-fly and scale your reach across various platforms and audiences.

However, amidst these benefits, the environmental impact of programmatic advertising presents a complex challenge.

The Environmental Footprint of Programmatic Advertising: A Cause for Concern

The digital world's carbon footprint is undeniably significant. Data centers house servers that require immense amounts of energy to process information and keep campaigns running.

Here are some key contributors to the programmatic advertising industry's carbon footprint:

  • Data Center Energy Consumption: Data centers are crucial for real-time bidding and campaign management, but their constant operation demands substantial energy supplies, often relying on fossil fuels.
  • Server Maintenance: The upkeep and maintenance of servers within data centers also contribute to the overall carbon footprint.
  • Data Transfer: The constant flow of data across networks consumes energy, impacting the environment.
  • Ad Creative Production: While digital, the creation and distribution of ad creative (videos, images, etc.) can involve resource consumption and energy use.

These factors combined paint a concerning picture. If left unchecked, the environmental impact of programmatic advertising can negate its positive impact on brand awareness and sales.

Advancing Programmatic Advertising with Sustainability at its Core

As a company we believe in the power of programmatic advertising to achieve impressive brand results. However, we also recognize the environmental responsibility that comes with it. That's why we're leading the charge towards carbon neutrality in programmatic advertising. Here's how we're achieving this goal:

Optimizing Our Operations:

  • Energy Efficiency: We invest in energy-efficient technologies and infrastructure to minimize our operational footprint.
  • Remote Work: Encouraging remote work reduces transportation-related emissions significantly.
  • Paper Reduction: We prioritize digital processes and minimize paper usage throughout our workflow.

Measuring and Reporting on Carbon Footprint:

  • Regular Assessments: We conduct regular carbon footprint assessments to identify areas for improvement.
  • Transparency: We are transparent about our own carbon footprint and progress towards carbon neutrality.

Investing in Green Initiatives:

  • Carbon Offsetting: We offset unavoidable emissions by supporting high-impact carbon reduction projects like renewable energy and sustainable forestry.
  • Sustainable Partnerships: We partner with vendors and suppliers who share our commitment to a greener future.

Educating the Industry and Clients:

  • Client Education: We equip our clients with knowledge about programmatic advertising's environmental impact and offer resources to minimize their own carbon footprint.
  • Industry Advocacy: We advocate for sustainable practices within the programmatic advertising community.

In the ever-evolving landscape of programmatic advertising, sustainability is no longer a luxury but a necessity. Think about other industries forced to comply with Green practices; the automobile industry in specific states in the U.S., commodities from the EU market expected to comply with EUDR by end of 2024. This is yet to hit the ad tech space, but expect that it could happen soon. How are you going to get ahead of it? 

Our commitment to carbon neutrality and sustainability aligns perfectly with the growing consumer demand for eco-conscious brands. That’s the awesome thing about Klever; you're not just selecting an advertising agency; you're joining a movement that is shaping the future of programmatic advertising.

Subscribe to our newsletter, or better yet, speak with our team who can help you understand how Klever works, and how to integrate it within your ad campaigns.

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