New Research Reveals Link Between High-Quality Digital Ads and Lower Emissions

Rhea-AI Summary

DoubleVerify (DV), a leader in digital media measurement, revealed findings from its Global Insights Report, highlighting the environmental benefits of high-quality digital ads. The study found that buying higher-quality media impressions reduced nearly 65,000 metric tons of CO2 emissions in 2023. The DV Authentic Rate, which measures ad quality, showed that higher rates are linked to lower carbon emissions, as per Scope3 impact data. Additionally, high-tier MFA sites emitted 44% more carbon emissions. DV’s partnership with Scope3, established in 2022, enables advertisers to align their strategies with environmental values. The report analyzed over one trillion impressions across various regions and formats in 2023.

Positive

• Buying higher-quality media impressions reduced nearly 65,000 metric tons of CO2 emissions in 2023.
• High-quality, fraud-free advertising optimizes performance and supports sustainability goals.
• DV Authentic Rate correlates strongly with lower carbon emissions.
• Media quality protections avoided a social cost of carbon equivalent to $13.2 million.

Negative

• High-tier MFA sites emitted 44% more carbon emissions relative to average emissions across DV-measured media.

Insights

Financial Analyst

DoubleVerify's findings draw a direct connection between higher quality digital ads and reduced carbon emissions. This revelation has financial implications both for advertisers and ad-tech companies. For advertisers, investing in higher quality, fraud-free advertising can lead to lower overall costs in the long run due to the $13.2 million social cost savings. However, the initial cost of buying high-quality ad spaces might be higher.

From an investor’s perspective, DoubleVerify’s ability to quantify the environmental benefits of its service may position it favorably in a market increasingly focused on social and environmental governance (ESG). This unique selling point could attract brands looking to align with sustainability values, potentially driving up revenue for DV in the long-term. Nonetheless, investors should also be aware that the emphasis on higher-quality ad placements could shift market dynamics, fostering competition with other ad-tech companies.

Additionally, as the report stretches across multiple regions including North America, LATAM, EMEA and APAC, investors should consider regional differences in the adoption of these practices. Emerging markets may be slower to adopt such higher-cost, high-quality measures, impacting overall adoption rates globally.

Environmental Analyst

This report by DoubleVerify brings to light the significant role digital advertising can play in climate change mitigation. By linking higher quality ads to reduced carbon emissions—44% less than high-tier MFA sites—the study underscores a novel approach to sustainability in the digital age. For advertisers, this means that not only can they improve the effectiveness of their campaigns, but they can also reduce their carbon footprint.

The environmental implications are noteworthy. Avoiding 64.9 thousand metric tons of CO2 emissions is equivalent to a substantial reduction in societal costs, pegged at $204 per metric ton of CO2. This data might push advertisers to prioritize eco-friendly ad placements, influencing industry standards and practices. However, the effectiveness of this approach will depend on broad industry adoption and collaboration, which could take time.

On the downside, there might be initial pushback due to perceived higher costs of high-quality ads. But considering the longer-term benefits, both environmentally and financially, this approach aligns well with growing global sustainability efforts.

DoubleVerify and Scope3 found that buying higher media quality impressions resulted in decreased carbon emissions of nearly 65 thousand metric tons of CO₂ emissions in 2023 showing the sustainability benefits of smart digital advertising

NEW YORK--(BUSINESS WIRE)-- DoubleVerify ("DV"), the leading software platform for digital media measurement, data, and analytics, today revealed findings from its Global Insights Report demonstrating a relationship between high-quality digital advertising environments and reduced carbon emissions.

The findings, based on a global analysis of over one trillion ad impressions delivered across web display and video environments underscore the environmental benefits of maintaining high-quality ad inventory. DV measures the quality of ad inventory through its DV Authentic Rate – the percentage of ads verified as brand-suitable, fraud-free, and in the correct geography. The study highlights that higher DV Authentic Rates correlate strongly with lower emissions, as measured by Scope3 impact data, further emphasizing the role of buying quality media in reducing digital advertising’s carbon footprint.

"Simply put, for digital ads, buying higher quality media directly translates to a lower emissions impact,” said Mark Zagorski, CEO, at DoubleVerify. "Our latest data shows that high-quality, fraud-free advertising not only optimizes performance but also supports broader sustainability goals. By enhancing the precision and efficiency of ad delivery, we can help decrease the unnecessary energy consumption that contributes to higher emissions."

The study also found that high-tier MFA sites, known for high ad density, emitted 44% more carbon emissions relative to the average emissions across DV-measured media. Conversely, ads with high DV Authentic Rates produced fewer emissions, affirming the positive environmental impact of quality digital ad placements.

DV’s approach to measuring the carbon impact of digital ads leverages a partnership that was launched in 2022 with Scope3, the leading provider of ad-emissions data. This collaboration enables advertisers to make informed decisions that align their marketing strategies with their environmental values, taking steps to ensure their advertising dollars are spent responsibly.

DV calculated that media quality protections helped avoid a quantifiable 64.9 thousand metric tons of CO₂ emissions waste from non-authentic ads in 2023, equivalent to a $13.2 million social cost of carbon ($204 per metric ton of CO2). Social cost of carbon quantifies and monetizes the incremental costs to society of climate change impacts resulting from the emission of one additional metric ton of CO2 or its equivalent.

"Media quality optimization prevented a sizeable amount of CO₂ emissions that would have been produced by low-quality ad placements, avoiding a considerable social cost of carbon,” said Zagorski. “This underscores the importance of maintaining high standards in digital advertising.”

Method: The report employs DV technology to analyze over one trillion impressions, both pre and post-bid, and offers a detailed market-by-market analysis for North America, LATAM, EMEA, and APAC. It covers video and display impressions from January to December 2023 across desktop, mobile web, mobile app, and CTV.

For the full 2024 Global Insights Report, visit: https://doubleverify.com/global-insights-2024-trends-report

About DoubleVerify

DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, DV strengthens the digital advertising ecosystem, ensuring a fair value exchange between buyers and sellers of digital media.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627912606/en/

Media:

Chris Harihar

chris@crenshawcomm.com

Source: DoubleVerify

FAQ

What was the key finding of DoubleVerify's latest report?

DoubleVerify's report found that buying higher-quality digital media impressions reduced nearly 65,000 metric tons of CO2 emissions in 2023.

How do high DV Authentic Rates affect carbon emissions?

Higher DV Authentic Rates correlate strongly with lower carbon emissions, as measured by Scope3 impact data.

How much social cost of carbon was avoided by DoubleVerify's media quality protections in 2023?

DoubleVerify's media quality protections helped avoid a social cost of carbon equivalent to $13.2 million in 2023.

What is the environmental impact of high-tier MFA sites according to DoubleVerify's report?

High-tier MFA sites emitted 44% more carbon emissions compared to average emissions across DV-measured media.

What does the DV Authentic Rate measure?

The DV Authentic Rate measures the quality of ad inventory, verifying if ads are brand-suitable, fraud-free, and in the correct geography.

What regions and formats were covered in DoubleVerify's 2023 analysis?

DoubleVerify's analysis covered North America, LATAM, EMEA, and APAC regions, including video and display impressions across desktop, mobile web, mobile app, and CTV formats.