Navigating the environmental impact of online advertising

The  impact of unregulated online advertising on the sustainable development of the industry and the benefits of ad filtering 

Zulaiqa is a MSc Sustainable Resource Management student at the Technical University of Munich. Specializing in renewable energy resources and carbon steering, she is pursuing her thesis which centers around a sustainability assessment of online advertising and ad filtering

In the bustling landscape of online advertising, the environmental side-effects aren’t often top of mind amid the flashy banners and pop-ups. But while online advertising fuels much of the content we consume on the internet, it also comes with a hefty environmental price tag. We’ve heard a lot on this topic in the past year – the programmatic/digital infrastructure supporting these ads churns out greenhouse gases at an alarming rate. As the primary revenue source for numerous online services, advertising has exploded in recent years, with total media ad spend projected to exceed $1 trillion by 2025 (Nina Goetzen, 2021). 

With online ads accounting for over 60% of global advertising investment in 2022 (and spending worldwide estimated at 667 billion USD in 2024, according to Statista), this surge in advertising has made the Internet the fastest-growing advertising medium today (Zenith, 2021). 

Sustainability isn't just about reducing emissions—it's also about balancing social, economic, and environmental considerations. Let’s dive into some numbers.. 

The impact of online advertising on the environment today

Behind the scenes, however, online advertising is a major contributor to greenhouse gas emissions. The energy and infrastructure required to support online ads have led to estimates that online advertising alone could account for as much as 2.1–3.9% of global emissions (Freitag et al., 2021), which is comparable to the environmental impact of the aviation industry. (with a share of GHG emissions of over 2%, International Energy Agency, 2022a). 

As the world becomes increasingly digitized, the internet's carbon footprint is expected to grow. This is driven by rising data traffic, energy demands from Information and Communication Technology (ICT), and the expansion of data centers and network services.

From 2015 to 2022, key digital and energy indicators have surged dramatically: the number of internet users, internet traffic, and data center workload have risen by 78%, 600%, and 340% respectively. In 2022, the estimated global electricity consumption of data centers was 240–340 TWh, which represents a 20–70% increase from 2015 and around 1–1.3% of global final electricity demand (International Energy Agency, 2022b).

One study found that the online advertising industry consumed as much as 106 TWh of energy and 1059 TWh of infrastructure globally in 2016 alone  (Pärssinen et al., 2018). If the German electricity mix emission factor at the time of the study is 0.5656 kg CO2e/kWh, the electricity consumption translates to 60 Mt CO2e. In comparison, this is higher than the combined Scope 1 and 2 (direct and indirect) emissions of a major polluter in the oil and gas industry such as Shell, which emitted roughly 58 Mt CO2e in 2022 alone (Shell, 2022). 

Considering today's context, with at least 60% more online users compared to 2016, alongside increased ad production and advancements in the online ad delivery system, the carbon emissions from online ad energy and resource consumption are expected to nearly double by 2025. This surge is fueled by the widespread adoption of smartphones and the sophistication and carbon intensity of online advertising delivery mechanisms (Kemp, 2022).

Now that we know the figures – what’s next?

The power of conscious advertising

In response to these concerns, there's been a growing call for the online advertising industry to align with the Net Zero scenario, aiming to reduce emissions by 50% by 2030 (International Energy Agency, 2022b). 

One proposed solution to conserve energy is the adoption of ad filtering (Pearce, 2020), which selectively blocks ads that don't meet certain criteria, reducing energy consumption while still supporting content creators, publishers and advertisers.

Using advertising more consciously and educationally can amplify its impact and drive positive change. Ad filtering offers a potential solution that addresses all three pillars, providing users with a better online experience while also reducing energy-related emissions by up to 70%*. The Acceptable Ads Standard offers a comprehensive approach to address these pillars. Unlike traditional ad blocking, which blocks all ads, ad filtering selectively blocks ads while allowing others to be displayed, offering a balanced compromise between user experience and revenue generation for advertisers and publishers. 

According to a 2023 study between eyeo and MAGNA IPG, Acceptable Adsʼ formats see an 11.5X drop in greenhouse emissions. A recent sustainability assessment conducted by a student from TU Munich suggests that ad-filtering users subscribing to Acceptable Ads, such as Adblock Plus, are more sustainable for the online ad ecosystem and the internet, meeting various sustainability criteria.

Furthermore, it's evident that video advertising, with its sound, animations, and rich media elements, consumes more energy and has a greater environmental impact compared to static and compact ads that occupy less screen space. Similarly, ads delivered through direct deals or real-time bidding may vary significantly in terms of energy consumption, warranting further investigation in future research.

By taking steps to minimize the environmental impact of online advertising, advertisers, publishers, and internet users can work together to create a trusted, safe and sustainable internet for future generations. This approach not only reduces emissions but also balances the three pillars of sustainability: social, economic, and environmental considerations. 

Ad filtering plays a crucial role in this solution by improving user experience, effective business practices for advertisers and publishers, and reducing the carbon footprint of online activities. By focusing on these three pillars, we can ensure a holistic and positive impact on the digital ecosystem.

Learn more about the benefits of ad filtering and how to improve impact, decrease ad spend and decarbonize your media today.