Omnicom media agency Hearts & Science has built an engine to buy streaming ads at times when there’s more solar, wind and hydro energy in the grid.
The buying and placement of an ad occurs when carbon-intensive electricity generation is low, which helps to reduce carbon emissions without affecting campaign delivery or increase the price of inventory.
The global ad industry is a contributor to carbon emissions, with digital display and streaming ads producing 7.2M metric-tons of carbon emissions every year – enough to power 1.4 million U.S households for a year.
While much of the issue sits within the total media supply chain, Hearts & Science build the Renewables Ad Engine.
Streaming ads emit more than double the carbon of display, according to a Scope3 Sustainable Advertising Report. This is made more concerning as investment in streaming video ads increases.
As budgets shift from linear TV to streaming, streaming ads now emit more than double the carbon of display.
The high level of emissions is due to the larger size of the consumer device (high proportion of CTVs) used to consume streaming media as well as the intensity of energy required for the data transmission of streaming content.
About 70% of electricity generation over the last 12 months (up to November 2024) across the National Electricity Market (NSW, QLD, VIC, SA and TAS) comes from non-renewable sources, such as coal. Only 30% is generated from renewable sources like solar, wind and hydro energy.
The Renewable Ads Engine buys streaming ads when the energy grid is on average cleaner and more renewable, and less when it isn't.
Through the energy regulator, the Australian Energy Market Operator (AEMO), the engine has access to the energy generation mix in 30-minute intervals.
The custom engine has then been programmed to only buy ads when a set target of renewable energy generation is in the energy grid – and deactivates when it doesn’t meet the parameters.
Through a proprietary approach, the Renewables Ad Engine was then able to independently trigger BVOD ads across the campaigns three key eastern seaboard states.
To ensure the technology did not affect campaign delivery the agency analysed thousands of rows of historical renewables penetration data and accounted for ongoing seasonal changes to renewables generation, Hearts & Science Chief Digital and Innovation Officer Ashley Wong told AdNews.
“Then we partnered with one of our clients who shares our passion for sustainability, Opella Healthcare Australia and one of their vitamin brands Ostelin to pilot the renewable streaming ad engine.”
The Renewables Ad Engine increased the proportion of renewable energy for the campaign across the streaming supply chain by 76%, with renewables accounting for nearly half of the energy consumed.
“Throughout the pilot, we monitored campaign delivery to ensure sustainability benefits weren't at the expense of performance. All metrics were maintained or improved, including price, pacing, reach and frequency,” Wong said.
“The technology worked so well for the environment and Opella Healthcare, we are now offering this to other agency clients to maximise the carbon reduction impact.”
Looking ahead the agency plans to include the technology into other channels and are currently working on how PDOOH can be activated.
“These are screens that are very bright and always on – and is the next channel we are looking at,” Wong said.
“Currently, the Renewables Ad Engine is a Hearts & Science exclusive technology – but who knows what the future may hold.”
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