COUNTING CARBON: HOW U.S. MARKETERS ARE TACKLING ADLAND'S CLIMATE CRISIS AUGUST 2022 GOOD-LOOP’S ‘COUNTING CARBON’ STUDY, AUGUST 2022. | WWW.GOOD-LOOP.COM/GREENMEDIA TAKING THE TEMPERATURE OF ADLAND'S CARBON PROBLEM Online advertising has a carbon problem. As the digital ad ecosystem has become more complex and fragmented – fuelled primarily by the energy required to support the rise in programmatic advertising – the negative impact it has on the environment has also increased. GOOD-LOOP’S ‘COUNTING CARBON’ STUDY, AUGUST 2022. | To put it into context, the internet represents almost 4% of global emissions, and is on track to double by 2025 (source: BBC) — a hefty chunk of which is caused by digital advertising. As a significant driving force within the global economy, and an important point of influence and engagement for the public, the advertising industry can play a key part in supporting the charge to a net carbon zero future. A typical online ad campaign emits 5.4 tons of carbon(source: Good-Loop) — around a third of what a U.S. consumer generates every year (source: Good-Loop), while 1M video impressions has the same carbon footprint as someone flying from Boston to London and back (source: Scope3). In order to better understand marketers’ perceptions of the impact digital advertising has on the environment and the actions being taken to reduce carbon emissions, Good-Loop conducted a survey of more than 400 digital marketers in the U.S. and U.K., mainly from media agencies and brands. This report reveals how brands and agencies are tackling the problem, the challenges faced and plans for future action. WWW.GOOD-LOOP.COM/GREENMEDIA 2 KEY U.S. FINDINGS Nine in every 10 (87%) U.S. marketers believe the digital advertising industry has a responsibility to reduce carbon emissions Almost two-thirds (61%) of U.S. marketers say they’re tracking the carbon emissions generated by their digital advertising campaigns 76% of U.S. marketers believe the digital advertising industry needs to do more to help reduce carbon emissions 56% of U.S. agency marketers and 46% of brand marketers believe “sustainability is more important than the cost of media” Seven in 10 (69%) U.S. brand marketers and more than half (54%) of agency marketers believe there are not enough education/training programs on sustainable media 51% of U.S. marketers say their organization plans to reach net zero in digital advertising at some point in the future but only 24% have been set targets GOOD-LOOP’S ‘COUNTING CARBON’ STUDY, AUGUST 2022. | WWW.GOOD-LOOP.COM/GREENMEDIA 3 MARKETERS KNOW THEY NEED TO DO MORE TO REDUCE CARBON EMISSIONS There is a near universal understanding that marketers need to take action to improve the sustainability of their campaigns. Nine in every 10 (87%) of U.S. marketers agree that the digital advertising industry has a responsibility to reduce carbon emissions. 76% of U.S. marketers say the digital advertising industry needs to do more to help reduce carbon emissions There is also a desire to do more, with three-quarters (76%) of brand and agency marketers supporting the view the industry needs to do more to reduce carbon emissions. This shows that while understanding the carbon cost of digital advertising is a relatively new concept, marketers understand the importance of the issue at hand. GOOD-LOOP’S ‘COUNTING CARBON’ STUDY, AUGUST 2022. | WWW.GOOD-LOOP.COM/GREENMEDIA 4 WHY DO MARKETERS FEEL IT IS IMPORTANT TO REDUCE THEIR CARBON EMISSIONS When looking at why marketers believe it is important to reduce carbon emissions, there is a widespread belief (53% of respondents) that “we all have a critical role to play in reducing carbon emissions and fighting climate change”. In fact, 56% of agency marketers in the U.S. and 46% of U.S. brand marketers believe “sustainability is more important than the cost of media”. GOOD-LOOP’S ‘COUNTING CARBON’ STUDY, AUGUST 2022. | WWW.GOOD-LOOP.COM/GREENMEDIA 5 WHAT’S DRIVING MARKETERS’ DESIRE TO REDUCE CARBON EMISSIONS? WHY IS MAKING YOUR DIGITAL ADVERTISING ACTIVITY CARBON NEUTRAL IMPORTANT? 60% 53% 40% 34% 20% 30% 28% 27% 22% 21% 21% 15% 0% We all have a critical role to play in reducing carbon emissions and fighting climate change We are under pressure from our customers to take action We have been set targets by senior management We are under pressure from our shareholders to take action It creates a competitive advantage It’s just somethi