Sustainable Digital Advertising: The State of Sustainability within the Digital Advertising Industry in Finland

Abstract

Inspired by the global advertising industry-wide movement towards sustainability, the author and the commissioning company IAB Finland wanted to research the state of sustainability within Finland's digital advertising industry. The objective of this thesis was to describe the state of sustainability within the advertising industry in Finland. The thesis also aimed to define further what is understood by the term sustainable digital advertising within the Finnish advertising industry and explore the state of the carbon footprint of digital advertising.

A mixed-method approach was employed to increase the reliability and validity of the research. Data was collected through an online questionnaire (n=53) during March and April 2023 and five semi-structured interviews in September and October 2023. The target group for the online questionnaire was the marketing and advertising professionals and other professionals working closely with the advertising field in Finland. The interviewees were experienced advertising professionals representing different operators of the digital advertising ecosystem, publishers, agencies, advertisers, ad tech and industry associations. The survey and the interviews were done in Finnish. The questionnaire was analysed through a descriptive data analysis, and the semi-structured interviews were analysed through a content analysis. The analysed data was combined and interpreted for a conclusion.

The results reveal that the digital advertising industry in Finland is at the beginning of its sustainability journey. There is a lot of intent, yet more action is needed. There were 3,8% of respondents measuring the carbon footprint of digital advertising, and 24,5% were planning to. Sustainable digital advertising was considered a broad, complex, and evolving concept. The concept of sustainable digital advertising was considered to include themes like the application of three pillars of sustainability, partnership and supply chain, ethical advertising, complying with regulations and rules, sustainable products and services, carbon footprint and impact. Comparing the IAB Europe (2023b) definition to the survey results and theoretical framework revealed a difference regarding the sustainability of the product or service as an object of advertising. The main challenges in sustainable advertising were considered to be the need for common standards and knowledge. There is also not enough training and education on the topic.

More research on sustainable digital advertising and digital advertising’s role in sustainability and greenhouse gas emissions is encouraged. For the advertising industry, it is recommended to continue the collaboration and open discussion and create common standards and frameworks, preferably based on research.