Nearly 50 percent of all marketing budgets within the region are set to be allocated to carbon-neutral partners within the next 12 months.
9th October 2023 – Sydney- Despite the deprecation of third-party identifiers and global economic turbulence, sustainability is a key focus for professionals within the Japan and Asia-Pacific (JAPAC) region. This is according to a new research report, Sustainability in Advertising – JAPAC 2023, published today by ExchangeWire, in association with OpenX.
The overriding majority of those surveyed deemed sustainability metrics to be important to their business, while simultaneously converting these theoretical applications into tangible business outcomes, with nearly half (47%) of all marketing budgets across the JAPAC region set to be allocated to carbon-neutral partners within the next year.
Building upon studies conducted annually through 2020-2022, media professionals across the digital advertising supply chain in Australia, India, Indonesia, and Japan were surveyed. The importance of programmatic advertising within the region continues to grow hand-in-hand alongside efforts to reduce carbon emissions, with 64% of surveyed professionals reporting an increase in programmatic spend and revenues.
“Sustainability is an incredibly important initiative for the JAPAC market as a whole. As a result, we’ve seen earlier adoption of sustainability measures and actions across both buy-and-sell-sides, with clear expectations and timeframes for when these are to be implemented,” commented John Harvey Faurholt, director, advertising and retail media partnerships – JAPAC, China, Microsoft Advertising, “This has also been reinforced through legislation and policy changes, in addition to industry groups like the IAB, establishing clear guidelines, best practices, and framework. This holistic response has created a greater sense of urgency (and collaboration) to address an important initiative while minimising revenue impact or disruption.”
Tom Charles, Director, Business Development, ANZ, OpenX said, “As the programmatic advertising industry continues to evolve in Australia, sustainability has emerged as a critical issue. We must implement viable solutions to supporting sustainability goals and actively reduce carbon emissions across the industry.”
Key findings from the report for Australia include:
Australia: Setting of SBTi goals
· 47% have set SBTi goal
· 38% haven’t set SBTi goal
· 16% unsure
Australia: Factors impeding carbon reduction goals
· 41% cite increased operational costs
· 41% cite prioritisation of other industry trends In Australia
· 22% cite lack of external pressure
Australia: Timeline for measuring carbon emissions
· 23% within six months
· 33% within one year
· 30% within three to five years
· 10% not planning to measure emissions
Australia: Timeline for mandating that partners report carbon emissions
· 4% within six months
· 20% within one year
· 4% within the next three to five years
· 12% are not planning to have partners report their carbon emissions
Australia: Percentage of budget allocated to carbon neutral partners
· 46% in the next 12 months
· 50% in the next 24 months
Australia: Importance of sustainability metrics
· 59% top priority
· 38% important, but not top priority
· 3% not important
Australia: Impact of Apple’s Identifier for Advertisers (IDFA)
· 55% small business impact
· 34% high business impact
· 10% no business impact
Australia: Direct approaches from DSPs and SSPs
· 83% open to working directly with DSPs or SSPs
· 10% already work directly
· 7% prefer to work with an intermediary
Australia: Concern over fraud & quality-related issue
· 19% very concerned, actively looking for solution
· 26% very concerned, not looking for solution
· 31% somewhat concerned, actively looking for solution
· 17% somewhat concerned, not looking for solution
· 7% not concerned
Access the full report here.
