26th March 2024, Brussels, Belgium - Today, IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, has published the first-ever Mapping of Greenhouse Gas (GHG) Estimation Solutions in Digital Advertising. The mapping presents the range of emissions models currently available and provides an understanding of how they may differ and why they may arrive at varying estimates. 

GHG emissions associated with the internet, devices, and supporting systems are thought to constitute nearly 4% of global emissions. With an industry-wide mandate to reduce this footprint, the first step is for companies within the digital advertising ecosystem to estimate their own emission contributions, so that they can demonstrate the true environmental cost of each digital advertising campaign to their partners. Yet, with so many tools and solutions coming to the market and no standards in place at the moment, it is extremely difficult for stakeholders to know where to start when looking to estimate, understand, and reduce the impact of their digital advertising efforts.  

This comprehensive report provides a transparent view of the wide variety of frameworks and solutions developed and adopted in Europe to estimate and reduce the scope 3 emissions produced by digital advertising. Each solution was examined through the prism of the features and attributes that IAB Europe member companies find to be most relevant and likely to inform decision-making. It helps stakeholders from across the ecosystem to understand how current options may differ when it comes to data, supply chain boundaries, and the methods used to model scope 3 emission sources and tailor their strategies to meet sustainability objectives. 

Participating organisations in the report include SRI/Alliance Digitale, GroupM, Dentsu, DIMPACT AdGreen, Scope3, Good-Loop, IMPACT+, Cedara, DK and SeenThis. The in-depth information on each framework or solution was collected from each participating organisation across a four-month period and provides additional context for each as relevant to the nine categories that represent the different aspects of GHG estimation solutions. 

Commenting on the release of the report, Arthur Millet, Chair of IAB Europe’s Sustainability Standards Committee, said, "There is a great deal of momentum in Europe around measuring and reducing greenhouse gas emissions from digital advertising. The major media groups and trade associations are heavily involved, as are the many companies that have been set up to meet this challenge. There is a need for a better understanding of the methodologies and data used to measure the carbon impact of digital advertising. To this end, common methodological approaches are gradually being put in place at national and now global level. Our approach with the IAB Europe is helping to bring greater transparency and genuine cooperation between players to harmonise methodologies and data."

Key insights from the report include:

• Data availability is seen by vendors as the main challenge to improving the robustness of estimates.  
• Quantitative descriptors of uncertainty are often missing in LCA databases, corporate reports, research, and other data sources, leading many solutions to adopt qualitative data assessments. 
• There is a critical importance for a collaborative and transparent ecosystem, where stakeholders can navigate and utilise data that describes emissions sources effectively.

Dimitris Beis, IAB Europe’s Data Analyst & Sustainability Manager, who compiled the report, also commented, “It is clear from the report that more work is required to move the industry toward a more sustainable mode of operations. As these solutions are developed further, it is crucial to understand their accuracy, how they can be improved, and how we can use them to drive consistent estimation (of environmental impact). In the meantime, industry professionals should contribute to the transition progress by selecting solutions thoughtfully with the help of this report. They should also encourage greater collaboration through industry initiatives, such as IAB Europe’s Sustainability Standards Committee, and engage in advocacy within their organisations.” 

“At IAB Europe, we will continue to analyse the solutions available in the market and provide updates through future iterations of this report. We will further address the challenges identified in this analysis, continue to share recommendations to help reduce GHG emissions, and support an industry-wide move towards a standardised framework to accelerate progress.”

The IAB Europe Mapping of Greenhouse Gas Estimation Solutions in Digital Advertising can be viewed here 

On 7th March, the Court of Justice of the European Union (CJEU) delivered a ruling in IAB Europe v APD.   In light of the complexity of the case and the risk of confusion about the implications of the ruling, we have laid out below the Court’s findings and what they actually mean.

Above all, nothing in the ruling puts into question the validity of the TCF or prohibits its use by the digital ecosystem to comply with the EU data protection framework.

The ruling concerned IAB Europe, not the TCF

The ruling was about IAB Europe and its role, as a standard-setting organisation, in the TCF.  Specifically, the CJEU had been asked whether IAB Europe acts as a data controller, and if so, of what data processing. 

The Court’s answer was that IAB Europe does indeed act as a data controller, but its controllership is narrowly defined.  IAB Europe acts as a joint controller for the processing of “TC Strings”, the digital signal capturing information about choices users make about data processing when they interact with a TCF CMP UI, which the Court finds to be personal data. 

Contrary to the APD’s assumption, IAB Europe does not act as a controller for the subsequent processing of all personal data processed for the TCF Purposes (digital advertising, content personalisation, etc.). 

Changes to the TCF will be limited and can be effected quickly

The fact of the TC String being designated as personal data confirms one of the APD’s findings in their February 2022 Decision. As a result, the corresponding changes to the TCF in order to accommodate it have already been proposed as part of the action plan submitted to and validated by the APD last year.

Although these limited iterations have been put on hold pending the answers from the CJEU, they have been approved by the APD and can be effected quickly. 

The appeal procedure is still ongoing, but meaningful changes to the TCF have already been made

The referral to the European Court was an important step in IAB Europe’s ongoing appeal of the APD’s February 2022 decision.  The Belgian court of appeal will now resume its deliberations on the merits - which can take several months. This does not mean that the TCF is standing still: since the beginning of the appeal procedure, the TCF instances have consistently continued to bring new and meaningful iterations to the Framework in line with regulators’ expectations, such as the roll-out of TCF v2.2 last year. Yesterday’s ruling merely provides the direction to continue expanding the compliance functionality of the TCF.

IAB Europe will continue to keep the market updated on the case and the further development of the Framework.

BRUSSELS, BELGIUM - 7 March 2024: IAB Europe acknowledges the ruling handed down today by the Court of Justice of the European Union (CJEU) in connection with IAB Europe’s appeal of the February 2022 decision by the Belgian Data Protection Authority (APD) against IAB Europe and the Transparency & Consent Framework (TCF). This followed the Belgian Market Court’s interim judgement of September 2022 which referred questions to the CJEU for a preliminary ruling and held that the APD decision was insufficiently substantiated and failed to meet the relevant standard for proper investigation and fact-finding.

IAB Europe welcomes the CJEU ruling that provides well-needed clarity over the concepts of personal data and (joint) controllership, which will allow a serene completion of the remaining legal proceedings.

In particular, the judgement of the Court establishes that:

(i) TC Strings (digital signals containing user preferences) constitute personal data, even from the perspective of IAB Europe, when they can be linked with reasonable means to an identifier such as for instance the IP address of the device of the user and IAB Europe can have access to such data;

(ii) IAB Europe can be viewed as a joint controller together with TCF participants in relation to the creation and use of TC Strings by publishers and vendors, on the basis that the TCF provides specifications for its processing, if IAB Europe actually influences the processing (purposes and means) for its own reasons.

(iii) IAB Europe should not necessarily be viewed as a joint controller together with TCF participants in relation to the subsequent data processing performed in pursuit of the TCF purposes, such as digital advertising, audience measurement, or content personalisation since IAB Europe has no influence on such processing. The CJEU conclusion on the latter is particularly important, as the APD’s erroneous controllership qualification of IAB Europe over such processing served as a basis for the authority’s assessments of the validity of legal bases established through the TCF and corresponding sanctions.

The Belgian Market Court will now resume its examination of IAB Europe’s substantive arguments in line with the answers provided by the CJEU. Pending the conclusion of the proceedings before the Market Court which can take several months, the suspension of the execution of the APD decision (i.e. the implementation of IAB Europe’s action plan following its validation) continues to apply.

IAB Europe will be posting a more in-depth commentary of the ruling and of its consequences shortly. Although it was adopted specifically in the context of the TCF-related dispute before the APD, the findings of the CJEU are important for all organisations with digital activities.

An updated FAQ regarding the APD decision can be found on IAB Europe’s website, here.

Press contact: 

Helen Mussard, CMO, IAB Europe - mussard@iabeurope.eu –  +44 (0) 7399 919594

About IAB Europe:

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers and to the market, and developing and facilitating the uptake of harmonised business partners that take account of changing user expectations and enable digital brand advertising to scale in Europe. 

As companies look to address the environmental impact of their business activity, ambitious yet feasible emissions reduction targets are necessary. For businesses (inside and outside of the digital advertising ecosystem) reduction targets serve multiple goals; they act as benchmarks for sustainability strategies and action plans, allow firms to be held accountable to their environmental objectives, and signal a company’s commitment to decreasing its footprint. In the absence of guidelines, however, setting such reduction targets can be a difficult task to undertake. What sources of emissions must be included? What level of reduction should firms aim for? What period should reduction plans be based on, and how often should progress be checked? Having a common reference point to answer these questions is paramount. Thankfully, businesses can refer to the Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard, a framework created to guide them in becoming net-zero organisations. 

To help businesses in the digital advertising industry kick-start their reduction journey, we’ve outlined some key information on how the SBTi Standard works, how reduction targets can be set, and the specific challenges of the SBTi target adoption to the digital advertising industry below. 

We have also released a complimentary podcast episode here, where we dive into the intricate world of carbon emissions in digital advertising further with Benjamin Davy, Sustainability Director at Teads.   

How does the SBTi Corporate Net-Zero Standard work?

The framework set out by SBTi lays a path for firms to achieve net-zero, otherwise understood as the state in which a business has a (on balance) non-negative contribution to environmental degradation and climate change. As a reminder, corporate emissions are categorised into three scopes, defined by the Greenhouse Gas Protocol:

• Scope 1 emissions are direct emissions from owned or controlled sources.
• Scope 2 emissions are indirect emissions from the generation of purchased energy.
• Scope 3 emissions are all indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions.

The SBTi Standard declares that organisations achieve net-zero by:

1. Reducing scope 1, 2, and 3 emissions to zero or a residual level consistent with reaching global net-zero emissions or at a sector level in eligible 1.5°C-aligned pathways.

2. Permanently neutralising any residual emissions at the net-zero target year and any GHG emissions released into the atmosphere thereafter.

Simply put, the definition of net-zero put forward by SBTi is based on scientific estimates of how much global emissions have to be reduced for the average global temperature to rise by a maximum of 1.5 degrees Celsius by 2050. The SBTi also defines separate reduction targets for sectors such as shipping and power generation that are significantly more carbon-intensive. Firms that operate in all other sectors may follow the generic, cross-sectoral pathway to net- zero. An Information and Communication Technology (ICT) pathway exists in the SBTi framework, which focuses on data centres, and fixed and mobile network operators. The ICT-specific pathway also features a formula to calculate a reduction target for emissions resulting from data centre operations. There is currently no SBTi pathway specifically designed for marketing and advertising activity.

How does a company set a reduction target under the Corporate Net-Zero Standard?

Under the SBTi framework, companies set two targets: a long-term target that expresses the total level of emissions reduction required in each sector, and a short-term target of a 5-10-year horizon that describes the reduction path they will take. Once their short-term target date is reached, a new short-term target is calculated. In summary, short-term targets are milestones to ensure accountability and progress towards the long-term goal of net-zero emissions.

1. Setting organisational boundaries & developing an emissions inventory

The first step to establishing SBTi targets is developing a complete greenhouse gas inventory in compliance with the GHG Protocol, which includes 95% of scope 1 and 2 emissions, as well as a complete scope 3 inventory. When setting organisational boundaries, companies must select one of the following consolidation approaches for this inventory:

A. Equity Share - emissions from an operation are accounted for by a firm according to its share of equity in the operation.

B. Financial Control - all emissions that the firm has financial control over are accounted for.

C. Operational Control - all emissions that the firm has operational control over are accounted for.

Scope 3 inventories used for SBTi submissions must be developed per the GHG Protocol Scope 3 Standard and GHG Protocol Scope 3 Calculation Guidance. These documents contain criteria for determining which upstream and downstream activities should be accounted for. The Scope 3 Standard also provides a list of activities that must always be included in a company’s emissions inventory for science-based targets submission. These are referred to as mandatory scope 3 emissions.

Two-thirds of mandatory scope 3 emissions must be included in the short-term target if scope 3 emissions represent more than 40% of a company’s total emissions, and 90% must be included in the long-term target regardless. By making this distinction, the SBTi Standard provides some leeway to companies facing scope 3 assessment challenges.

Regarding scope 1 and 2 emissions, 95% must be covered by both near-term and long-term reduction targets.

2. Setting targets

Companies can then set short- and long-term targets relative to a base year they define. The company’s emission profile from the base year must be representative of its current environmental performance and allow for ambition in terms of improvement. Subsidiaries may set their own targets, but must also be included in the parent company’s SBTi submission using the selected consolidation method.

Unless a company’s SBTi submission is based on sector-specific targets, near-term targets are calculated based on a reduction rate of 4.2% per year, and long-term targets are fixed at an overall reduction of 90%. These are absolute emissions targets, referring to the total of a company’s emissions rather than the GHG intensity of its activity. For scope 2 emissions, targets may be substituted by an 80% and 100% renewable energy procurement target by 2025 and 2030 respectively. Renewable energy certificates (RECs) and virtual power purchase agreements (VPPAs) are accepted here.

Scope 3 targets may be defined separately either in terms of physical intensity, using a self-defined metric (e.g. CO₂e per kb), or economic intensity, using CO₂e per unit of value added. These must be reduced by at least 7% year-on-year and 97% overall. Another option for near-term scope 3 targets is to set supplier and customer engagement targets, which aim for SBTi target establishment across a firm’s value chain.

What are a company’s commitments under the SBTi?

The SBTi framework allows businesses to set credible, verifiable targets that are informed by the current scientific understanding of the effect of global economic activity on climate change. Companies that wish to set emissions reduction targets using the Corporate Net-Zero standard must embark on an extensive process to develop verified emissions inventories and targets. The SBTi publishes a record of all targets set under the framework and checks for compliance with the Standard’s requirements on a rolling basis. As such, the organisation can ensure that firms with active targets are working to carry out their commitments - by issuing annual emissions reports, for example. Companies that are found to be non-compliant risk being removed from the SBTi database.

SBTi targets are a long-term commitment for companies; besides pledging that it will achieve net-zero before 2050, a company with SBTi targets also commits to issue short-term targets and report progress perpetually until net-zero is achieved.

What are the challenges relative to SBTi target adoption in digital advertising?

According to IAB Europe’s latest State of Readiness Report, only 18% of firms have set environmental reduction targets, through SBTi or otherwise, with a further 15% of respondents claiming they are in the process of establishing targets. The digital advertising ecosystem, spanning from advertisers to publishers, has certain unique challenges to address relating to greenhouse gas (GHG) inventory development and reduction target-setting:

1. Lack of consistent application of protocol and standards. Not all greenhouse gas inventories are born equal. Apart from the obvious comparison that can be drawn between the levels of reduction that different companies aim to achieve, inventories and targets can also vary significantly depending on which activities are accounted for, and how their resultant emissions are modelled. Most importantly, in the absence of sector-specific guidance related to corporate emissions reporting, multiple interpretations of GHG Protocol and SBTi standards may be valid and verifiable. The selection of which scope 3 activities to include can range from business to business. Certain activities may be excluded because the firm does not have access to high-quality data, and including the activity would reduce the overall quality of the GHG inventory. In the long-term, the SBTi states inventories will cover the sources of at least 90% of scope 3 emissions. Before we get there, the current list of mandatory scope 3 emissions sources may not suffice in addressing major components of the digital advertising value chain. For example, from a publisher's perspective, the emissions resulting from SSP activity would fall under Scope 3.11 in the GHG Protocol, “Use of Sold Products”. These are indirect use-phase emissions that are excluded from the Scope 3 Standard’s minimum boundary and considered optional.

2. Technical complexity and interdependence. Most firms report scope 3 emissions that outweigh their scope 1 and 2 emissions. This is especially true for the digital advertising ecosystem, where a majority of companies rely on partners for services such as cloud storage and computing. In addition, multiple ad tech, data, verification, and measurement platforms are activated for each delivered impression. While there are vendors trying to map the programmatic supply chain and offer estimates for GHG emissions across it, further work is required to increase the quality of their models and enable businesses to truly understand their scope 3 emissions. Optimally, both the demand and supply side should source corporate intensity figures directly from their tech partners to be compliant with recommendations in the GHG Protocol Corporate Standard. At the moment, they may not even be able to identify all the businesses included in their programmatic supply/demand chain at one point or another, rendering accurate scope 3 reporting impossible.

3. Reliance on major diversified firms. The digital advertising industry is reliant on key tech providers with operations that are diversified both in terms of scope and geography. Companies looking to develop GHG inventories and set SBTi targets require emissions data that is specific to the services they purchase and business units they partner with. However, corporate emissions reports often lack the level of granularity required to obtain intensities at a business unit or media product level, leaving firms with no information on the level of emissions that should be included in their scope 3. This challenge may be addressed should tech providers issue product-level intensities, the need for which is highlighted in GHG Protocol documentation in the cases of diversified suppliers.
   
4. Lack of education is highlighted as a key obstacle to environmental sustainability by 90% of the industry according to our report. We must not forget that the conversation on sustainability is still at a nascent stage, and a lot more work is required to move the digital advertising industry along the learning curve. As more business leaders are educated on the importance of sustainability, and pressure from clients, partners, investors, and regulatory bodies grows, we are bound to see the pool of businesses with SBTi targets grow as well. At the moment, our research suggests that a non-negligible part of the digital advertising industry still regards sustainability as an unknown or potential cost centre rather than an opportunity.

5. Lack of financial resources. As aforementioned, the development of a GHG inventory and the setting of SBTi targets represents a substantial commitment, with financial implications. Firms may be holding off for now due to the cost of establishing a dedicated sustainability lead or working with an external advisor or consultancy. Furthermore, they may be hesitant to commit to the long-term costs associated with collecting scope 1, 2, and 3 data, publishing annual emissions reports, and investing in GHG footprint reduction. In an unstable market environment, and one in which firms are burdened with adapting to paradigm shifts such as the deprecation of third-party cookies, sustainability may not top the priority list for all.

Designing an emissions reduction strategy can be challenging, but it’s important that businesses make a start by setting targets.  To help businesses in the digital advertising ecosystem take action, our Sustainability Standards Committee brings industry stakeholders together to create and share best practices and develop standards that help reduce the amount of energy consumed and emissions produced by digital advertising.

Committee participation is open to all members of IAB Europe and key resources produced by the committee can be explored in our Sustainability Hub here. 

For more information on the committee and how you can get involved, please reach out to Lauren Wakefield - wakefield@iabeurope.eu or Dimitris Beis - beis@iabeurope.eu. 

Brussels, Belgium, 29th February 2024 - Today, IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, published the first set of recommendations for Retail Media digital advertising metrics and measurement standards in Europe. The recommendations are open for industry comment and feedback and will help shape the final standards due to be released in April.

As Retail Media continues to grow as an advertising channel, media buyers must have consistent metrics with which to compare their investments. In 2023, IAB Europe found that 70% of buyers cited the lack of standards for Retail Media as a barrier to investment, with media and attribution measurement being cited as the most important areas to address first.

The recommended standards were developed following IAB Europe’s Retail Media Measurement Workshop which brought together 15 retailers from across Europe. This feedback was combined with the ongoing discussions from IAB Europe’s Retailer Council and Retail Media Committee. 

IAB Europe also recognises that progress has been made on the development of Retail Media metrics definitions in other markets (e.g. IAB US, BVDW in Germany, and ISBA in the UK) and this work was used to form the basis for discussions within the Workshop. For example, IAB Europe’s recommendations incorporate most of the elements from the Now and Next sections of the ISBA “Responsible Retail Media Framework”. 

The recommendations address the following areas:

• Primary Media Metrics (including viewability, IVT) to ensure digital retail media ads adhere to the same standards as other digital ads
• Attribution Metrics to ensure that brands are able to compare their advertising investments using a standard lookback window and iROAS definition
• Additional Retail Media Insights to further elevate the unique insights that retail media networks can provide such as ‘New to Brand’

The standards document can be viewed here alongside the FAQs document. The recommendations are open for public comment until the 29th of March 2024. Please send your comments to retailmediastandards@iabeurope.eu 

Jason Wescott – Chair of IAB Europe’s Retail Media Committee, and Global Head of Commerce Solutions at GroupM commented on the development of the standards: “There is no clearer example of the importance of IAB Europe and our Retail Media Committee than this work on Retail Media Measurement Standards. Whilst a rapid increase in the number of retailer advertising offers is a wonderful thing for our industry, it has made planning and buying more complicated, with accurate comparisons across providers burdensome, if not impossible. 

We brought the region’s leading digital retail media businesses together to collaborate on a common set of standards that will not only ensure retailers can be consistent with existing digital media standards, but also encompass consistent, retail-centric, metrics spanning sales attribution and sales/consumer insights. This consistency will be a big step towards making the region’s industry more unified and accessible for advertisers. I’m excited to see the first version of these standards and for future iterations, as this channel will continue to evolve.”

Jessica Wegner, Vice President New Business & Retail Media at Douglas Marketing Solutions commented on the importance of these standards: “In the dynamic landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardisation. Only half of buyers currently recognise its efficiency, seeking standards and regulations. To unleash the full power of Retail Media, addressing this critical gap through standardised measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardisation, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.

As Retail Media continues to deliver remarkable results, the recent milestone of IAB Europe releasing the first European Retail Media Measurement Standards is a transformative step. This marks a future-changing development, emphasising the increasing acknowledgment of Retail Media's significance.”

Following the feedback process, IAB Europe will issue a first version of Retail Media Metrics and Measurement Standards for Europe. IAB Europe also intends to continue to work on developing standards for Digital Retail Media advertising with addressable areas including creative ad formats, brand metrics, and in-store measurement. 

IAB Europe will host a webinar on the 19th of March to provide a deep dive into the recommended standards and provide the opportunity for audience questions. Register to join the webinar here. 

To access any more information, industry education, and intelligence about Retail Media in Europe, please visit IAB Europe’s dedicated retail media hub on its website here. 

Nearly three-quarters (70%) of digital advertising businesses have started their journey towards CO₂e reduction  

Adopting solutions (90%) and developing tools (90%) to reduce GHG emissions, and creating consistent standards for GHG estimation (89%) are a priority to drive progress.

Brussels, Belgium, 15th February 2024 - IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, today announced the results of its latest annual ‘State of Readiness - Sustainability in Digital Advertising’ Report for 2024. The main findings highlighted that the vast majority of businesses in the digital advertising industry have started their journey towards CO₂e reduction at 70%. 24% of those have made significant progress and 27% have made some progress. The report also shows that the adoption of solutions (90%) and development of tools (90%) to reduce greenhouse gas (GHG) emissions in the digital advertising supply chain and the need for consistent standards for GHG estimation (89%) are crucial to driving progress within the industry. 

The report, now in its second year, received 186 responses from across 29 European markets and provides key insights into how much of a priority sustainability is for businesses in the ecosystem, and how much progress companies have made in reducing their carbon footprint and improving sustainable practices.

Key findings from the 2024 State of Readiness Report highlight:

• Sustainability Priority: Sustainability is still seen as a key challenge for the digital advertising industry in 2024 with it being cited as just as important as cookieless targeting and measurement to businesses.

• Priorities for Progress: Greenhouse gas (GHG) impact was identified as a primary concern (64%), with the adoption and development of solutions (90%) and tools (90%) that reduce GHG emissions in the digital advertising supply chain, and consistent standards for GHG estimation (89%) being cited as crucial for driving progress.

• External Verification: A majority (65%) of respondents agree on the necessity for external verification regarding CO₂e measurement and standards.

• Drivers for Sustainability: Corporate social responsibility, client expectations, and compliance with regulations emerge as the primary drivers for businesses' interest in sustainability.

• Progress Towards CO₂e Reduction: While nearly three-quarters (70%) of respondents have initiated efforts to reduce CO₂e emissions, only a quarter (24%) have made significant progress.

• Key Actions Taken: Sustainability initiatives such as environmental audits, participation in industry forums, and the creation of checklists are among the actions taken by companies on their sustainability journey.

• Room for Improvement: Despite ambition, only 24% of respondents have adopted a GHG estimation framework to measure the impact of digital advertising. Additionally, there is consensus on the need for further education, consistent standards, and transparency within the industry.

Commenting on the findings Steffen Johann Hubert, Lead Sustainability at Seven.One Media and Vice-Chair of IAB Europe’s Sustainability Standards Committee said “IAB Europe’s second State of Readiness Report clearly emphasises that we are focusing our work in the Sustainability Standards Committee on the right challenges: Education, standardisation, transparency as well as measurement and reduction of emissions. Although many of the European regulatory requirements like CSRD & ESRS, CSDDD, GCD, and so on have not yet been implemented in the market, it is also clear that the digital advertising industry is taking the focus on the topic seriously and has intensified it once again since the last survey.”

Audrey Danthony, Co-Founder - Chief Product Officer at IMPACT+ also commented “IAB Europe's Sustainability in Digital Advertising Report highlights some of the clear, tangible progress the industry has made in acknowledging the impact it has on the environment. It’s encouraging to see that the industry is getting serious about sustainability. 

However, while there are promising signs, the report also highlights we still have a lot more work to do to take this commitment to the next level. Only 1 in 10 companies are estimating the carbon footprint of all their digital campaigns – and this needs to change. It’s urgent that players within the industry adopt best practices and robust solutions at scale to systematically evaluate and drastically reduce emissions of all their campaigns. When it comes to the future of our planet, every single ad impression counts.” 

IAB Europe’s Sustainability Standards Committee, a multi-stakeholder group that aims to share insights and deliver outputs that help to reduce the amount of energy consumed and emissions produced by digital advertising will be using the survey findings to help drive its 2024 work plan forward.

For more information on IAB Europe and the work being done to drive sustainability in digital advertising forward, visit the IAB Europe Sustainability Hub or contact communication@iabeurope.eu.

The full report with accompanying graphs can be downloaded from IAB Europe’s website HERE.

Brussels, Belgium, 8th February, 2024 - In a continuous effort to enhance transparency and accountability in the digital advertising ecosystem, IAB Europe is pleased to announce the release of the updated 'Guide to Quality' for 2024. This comprehensive guide written by members of IAB Europe’s Brand Advertising Committee is a valuable resource for all stakeholders in the supply chain, offering insights, best practices, and practical examples to elevate the quality of digital advertising campaigns.

Building upon the success of the initial release in September 2021, the 2024 edition of the guide encompasses additional quality elements, with a particular focus on sustainability best practices. As with the last edition, the guide addresses crucial aspects such as viewability, brand safety and suitability, ad fraud, campaign creativity, user experience, and privacy. 

To mark the launch of the updated guide, IAB Europe will be hosting a webinar on 7th March at 12:00 CET. The webinar will feature key contributors to the guide, including experts from the Brand Advertising committee, who will discuss the guide's significance and delve deeper into what constitutes quality in digital advertising and how this can be achieved. Participants can expect insights into why quality is paramount and gain valuable perspectives on implementing best practices.

"We believe that quality is a shared responsibility among all stakeholders in the digital advertising ecosystem," said Helen Mussard. CMO at IAB Europe. "This updated guide not only reflects the latest industry best practices and standards but also emphasises the importance of sustainability in digital advertising. We invite industry professionals to join our webinar and engage in a meaningful dialogue about the future of quality in our industry."

For more information and to access the 'Guide to Quality,' please visit here.

For media inquiries, please contact:

Helen Mussard, CMO at IAB Europe (mussard (at) iabeurope.eu)

Ever wanted to find a certain resource on a specific industry topic but haven’t known where to start? Look no further. We are pleased to share that our Knowledge Hub has expanded to reveal three new specialist Resource Hubs, allowing you to access all the expertise and insights that you need to know on some of the industry’s key topics. 

Dive into our new Hubs and equip yourself with the latest information, insights, and key resources on the following topics:

Retail Media Hub

Our Retail Media Hub showcases the rapidly growing Retail Media ecosystem. The Hub features the latest insights, definitions, and resources created in collaboration with our members.

Sustainability Hub   

Our Sustainability Hub features the work of IAB Europe, created in collaboration with National Federations and our members, to showcase what we are doing and the steps we are taking to support and achieve sustainability in digital advertising.

Post Third-Party Cookie Hub 

A dedicated hub strategically tailored to address the imminent depletion of third-party cookies.  The curated resources provided within this hub are geared towards sharing practical, solution-oriented guidance to prepare for a post third-party cookie era.

From educational tools to definitions, research, and the latest news and stats, we will continue to share and update these Hubs to provide you with all the quick-access information you need to stay educated, informed, and ahead of the game. 

What’s more, you can still access our central Knowledge Hub for all of the latest research, reports, and market insights from us and our members. So whatever you need to know more about, we have the resources at hand to help.

Keep your eyes peeled for more Resource Hubs coming soon.

Brussels, Belgium, 24th January, 2024 - IAB Europe has welcomed its first Chair and Vice-Chair of the Retail Media Committee, to help lead and drive integral work and pan-European standardisation and education in this rapidly growing digital advertising space. 

Jason Wescott, Global Head of Commerce Solutions at GroupM Nexus was elected as Chair of IAB Europe’s Retail Media Committee, alongside Patricia Grundmann, Chairwoman of Retail Media Circle, Bundesverband Digitale Wirtschaft (BVDW) e.V. and Vice President Media & Retail Media, Managing Director OBI First Media Group, who was elected as the Vice-Chair, on the 18th January during the first Committee meeting of 2024. 

Standing as the first Chairs of the Committee, Jason and Patricia were elected to lead the committee’s work to help increase understanding of the Digital Retail Media advertising ecosystem, enable cross-stakeholder initiatives, and develop standards to enable Retail Media to scale and thrive across Europe. 

Jason has been an active member of IAB Europe’s Retail Media work track since the multi-stakeholder working group was first launched in October 2022. Commenting on his newly appointed role, and sharing his expertise and vision for the committee, Jason said, “Retail Media has had a stellar year, claiming the accolade of fastest growing major ad revenue channel within digital for Europe and Central Asia in 2023. The digital ad landscape will continue to evolve at an exhilarating pace, driven by developments in data capabilities, technology, commercial opportunity, and digital consumer trends. 

With great change comes great responsibility. Recognising the growing impact, influence, and sheer scale of Digital Retail Media, it’s no surprise that IAB Europe has made it a larger focus; with one resource being a Retail Media Committee. This multi-stakeholder group helps increase understanding of the region’s Digital Retail Media ecosystem through industry definitions, guidelines, standards, market intelligence, and thought leadership. I’m tremendously proud to be a member of this collective, which brought together many of the region’s most influential (Retail Media) leaders - who’ve collaborated to produce valuable insights that provide enormous benefits. It’s an incredible honour to receive the vote of confidence from this group, and I look forward to supporting more in my role as IAB Europe Retail Media Committee Chair, for the next two years.”

Commenting on her role as Vice-Chair of the committee and her vision for supporting and leading the work alongside Jason, Patricia said “Only a shared understanding of the market enables an efficient, cross-party planning and implementation of retail media campaigns. I am looking forward to significantly increasing the market importance of retail media on a European level and establishing uniform European market standards and metrics to create more transparency for all parties.“

The Committee brings together retailers, including Ahold Delhaize, Bol, Douglas, MediaMarkt Saturn, Schwarz Media and Ocado alongside leading Retail Media businesses in Europe to advance and shape the future of this exciting digital advertising space and has already produced valuable resources including pan-European definitions, the first-ever industry association-led Retailer Digital Advertising Capability Map a Retail Media Glossary. You can find all of these resources and more on IAB Europe’s Retail Media Hub here. To find out more about the committee’s work and how you can get involved please contact IAB Europe’s Marketing & Insights Director, Marie-Clare Puffett here. 

Retail Media is transforming the digital advertising ecosystem. At the same time, it is transforming many retail businesses and how consumers shop with them. Whilst some retailers have developed sophisticated media networks, some are new on their journey. To understand what it takes to develop a Retail Media value proposition, we sat down with experts from our Retail Media Committee to gain their insight and recommendations. 

A big thank you to the following contributors for sharing their thoughts:

• Diana Abebrese, Global Retail Media Lead, EPAM Systems
• Martin Svarc, IAB Slovakia Representative and CCO, Crxuo
• Larisa Dumitru Head of eCommerce EMEA, GroupM Nexus
• Babs Kehinde, Senior Director, Commerce Media EMEA, PubMatic 

Q1. What are the top two considerations for retailers thinking about building a Retail Media proposition?

Diana:

Start by understanding your customer journey and building a unique proposition to deliver relevant touch points across the journey. Often this will differ by product category, channels, audience segment, store formats, and seasonality. The proposition should improve not detract from the overall customer journey with customer experience always front of mind. Pricing strategy should reflect the role in the customer journey but also consider market rates; demand v supply; category and product profitability and cost of sale.

Secondly, make it easy for your internal teams and advertisers to plan, buy, and measure an end-to-end Retail Media campaign across each touchpoint - this is likely to be a different solution for each retailer, and their target markets (brand advertiser v agency v long-tail supplier v a JBP (Joint Business Plan) supplier with a media commitment aligned to their trading activity). The key is to create a streamlined user journey and enable a single view of the campaign activity through APIs and custom integrations where necessary.

Martin: 

When retailers build a Retail Media proposition, they should prioritise two key considerations. First, they need to assess their audience and data assets, leveraging valuable first-party data and understanding the size, demographics, and interests of their audience. Second, retailers must develop a solid monetisation strategy, exploring different pricing models and ensuring a seamless integration that enhances the customer experience. Additionally, they should consider factors like technology infrastructure, partnerships with brands and agencies, competition analysis, and compliance with privacy regulations. A comprehensive approach to these considerations will help retailers build a successful and profitable Retail Media proposition.

Larisa:

First, have clarity on the go-to-market model: are you building your own Retail Media proposition in-house? Are you working with a third-party? Are you selling through a retailer media network such as Criteo? Will it all be self-service? Will you also offer managed service? We see many retailers working with a plethora of partners, which creates a lot of confusion for brands and agencies. I’m all for testing and learning, but I do believe retailers need to be very clear on the partner ecosystem.

Secondly, make it easy for advertisers to buy into your Retail Media offering – be clear on the unique selling points, on the pricing, on the ways of working.

Babs:

When retailers consider building their own Retail Media proposition, they should firstly initiate internal alignment to clearly define the value they offer to advertisers. This involves fostering collaboration across teams and business units to efficiently develop a viable solution. Additionally, retailers should prioritise effective use of customer data by investing in data technology solutions for storage, management, analysis, and activation of audience segments. Without a robust data infrastructure, competing in the realm of data-driven advertising becomes challenging. 

Furthermore, Retail Media thrives on collaboration. Retailers should engage in strong partnerships with brands and agencies, ensuring their proposition is attractive and accessible. Retailers need to understand their new partners' needs and goals and provide the best tools and solutions to align with strategic objectives. Lastly, retailers should be open to working with third-party technology providers to aid them in their Retail Media endeavours. The development of these retailer-technology partnerships is vital to the growth as well, as it makes it easier for smaller, vertical-specific retailers to enter the market and compete on a level playing field with the larger players.

Q2. What challenges should they be aware of?

Diana:

There are many! 

• It’s very easy to jump on the next shiny product bandwagon, but how do you ensure it is future-proofed?  Can it adapt to the potential needs of tomorrow - standardisation, growing market demands,  new buy types/ KPIs, new DSPs? Due diligence around this is something that often gets overlooked, rendering a part of the proposition redundant very quickly.
• More inventory/new products does not always mean more revenue. It can sometimes mean better (more profitable/ higher performing) revenue, replacing existing investment into other products. Manage expectations internally when building business cases and invest time in training and GTM around media planning and optimisation automation.
• When building a proposition, retailers will generally have to integrate with some 3rd party platforms. Be aware of buying into solutions, where you are told that it's a simple integration - “we just need to add a simple tag on the site.” It is rarely that simple - and you will have to jump through multiple hoops internally - business case, testing, securing dev time - before this can even be considered.

Martin: 

Retailers can build the case internally for a Retail Media proposition by highlighting the benefits of collaborating with trusted partners who have experience in this domain. They can emphasise that partnering with established experts avoids reinventing the wheel and accelerates the process of launching a successful media proposition. By showcasing the potential revenue streams, enhanced customer experiences, and the opportunity to strengthen brand partnerships, retailers can make a compelling case for internal stakeholders, demonstrating that leveraging trusted partners is a strategic and efficient approach to building a thriving Retail Media proposition.

Larisa:

In Europe, the Retail Media market is expected to be valued at 25 billion EUR by 2027 – that number in itself is a good starting point when trying to convince internal stakeholders to launch a Retail Media proposition. For retailers, I believe it’s less a case of why and more a matter of how and when. Bringing everyone to the table and ensuring that all interests are equally represented (trade & shopper, marketing, content, sales, etc) will be key in ensuring a holistic Retail Media proposition and it’ll make it easier for agencies and brands to buy into it.

Babs:

When persuading their internal teams, Retailers must remember they’re not just selling an idea but are telling a compelling story that aligns with the team’s goals and values and the significant growth opportunity for their organisations. A few things to bear in mind are: 

• Speak the language of value: Link the proposition to the company goals, focusing on incremental revenue and customer engagement outcomes. 
• Show don’t just tell: Use real data to illustrate the benefits of Retail Media for the business. 
• Address scepticism head-on: Answer any doubts and concerns with clear evidence. Be transparent and honest. 
• Map out the road ahead: Explain the steps, resources, and timeline needed to make the proposition a reality. 
• Get champions on board: Get support from key stakeholders who can influence and overcome resistance. 

Q3. Can you share two top best practices for retailers?

Diana:

1. Conduct a proposition audit every six months to assess how it is delivering against your business strategy. Build a framework that highlights gaps in the current portfolio, reviews competitor propositions, reviews the performance of each placement - STR, pricing, ease of implementation, ROAS, impact on site yield, and considers qualitative feedback - internal and customer. 
2. Stay connected with the industry as it is so fast-moving. Keep talking to vendors and partners. Score and group innovation ideas into buckets such as - Do Now; Never; Yes but Not Yet; and Needs more Consideration. Continue to review quarterly.

Martin: 

1. Adopt a step-by-step approach: Rather than spending extensive time on forming a comprehensive strategy, retailers should take an iterative approach. Consider utilising an existing technology or platform to build a first proof of concept. Deliver tangible results, evaluate performance, and learn from the outcomes. This incremental approach allows for adjustments and optimisations along the way, leading to a more effective and efficient Retail Media proposition.
2. Simplify and expand the offering: Leverage existing platforms that simplify the complex process of vendor marketing. Streamline the management of vendors and extend the offering to both endemic and non-endemic vendors. By combining trade marketing and branding budgets, retailers can create an attractive proposition for brands and their agencies. Retail Media uniquely captures the complex customer journey from first impression to repeated conversion, providing a comprehensive channel for brands to engage with their customers.

Larisa:

1. There is so much noise at the moment in the industry and so much fragmentation, so make it easy for your external stakeholders to understand your Retail Media proposition – everything from the pricing model to the placements and creative opportunities. 
2. Showcase the incremental value that your Retail Media offering is bringing to the table – offering a ROAS metric based on last-click attribution doesn’t cut through the noise anymore. Brands need to know that the money invested in Retail Media will bring in incremental sales and new to brand audiences and they want to be able to properly track and measure those results.

Babs:

1. Prioritise the customer journey - Use Retail Media to enhance the customer experience at every stage, from raising awareness to establishing loyalty. By leveraging customer data, retailers can deliver relevant and personalised ads that match the customer’s needs. Measuring the impact of your Retail Media campaigns on customer metrics, such as satisfaction and lifetime value can help gauge their effectiveness 
2. Innovate and differentiate - Use your unique assets, such as your own products, services, content, and channels, to create distinctive and compelling Retail Media solutions. Experiment with new formats, on-site and off-site technologies, and partnerships, to offer more value and variety to your advertisers. Create a Retail Media proposition that reflects your brand identity and values, and that resonates with your customers and advertisers.

At IAB Europe, we love research and with our extensive experience of undertaking industry attitude and benchmarking studies on a range of digital advertising and marketing topics, it’s easy to see why. 

As such, as our festive gift to you, we’re excited to share and round up the year with not one but three unique and exciting surveys that we invite you to provide your expertise in. 

From the state of readiness of our industry when it comes to sustainability in digital advertising, to the current state and advancements in Artificial Intelligence (AI) and understanding how prepared we are for the post third-party cookie era. Whether you’re on the buy or sell side we want to hear from you.

Each of our surveys is designed with time in mind and should take no more than 10 minutes to complete. Plus all answers will be kept strictly confidential. 

Check out the details below and participate today.

Thank you in advance for your time and insights, they really do help us to drive the future of our industry forward. 

Help us understand how much progress our industry has made towards sustainable digital advertising practices.

Achieving sustainability is critical for the digital advertising industry. But how much of a priority is it for businesses in the ecosystem today, and how much progress have companies made in reducing their own carbon footprint and improving sustainable practices? We need your help to find out.

Now in its second year, our State of Readiness survey aims to provide a comprehensive, pan-European understanding of our industry’s advancement towards sustainable digital advertising.

Your insights are valuable in helping us understand our industry's progress and what more needs to be done. We will be comparing this year’s results against last year's, so we can measure how attitudes and progress have developed. 

The deadline to complete the survey is Friday 19th January 2023. 

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Artificial Intelligence (AI) is rapidly transforming the digital advertising landscape. It’s a hot topic and one that is changing the way brands advertise, providing new ways of reaching consumers and automating complex tasks to help make more informed, data-driven decisions. 

But to fully harness its potential and to understand and navigate its challenges, we need your help and expertise.

In collaboration with Microsoft Advertising, we’re looking to gain valuable insights into the current state of Artificial Intelligence (AI) within the digital advertising industry through our new survey. 

The survey is now open, and you have until Friday 2nd February, to take part. 

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How ready is the digital advertising industry for a post-third-party cookie world?

With less than a year to go before third-party cookies are deprecated in Chrome, we are keen to understand how the digital advertising industry is gearing up for this new era. We invite stakeholders from across the industry to take part in this short survey to help us understand the level of readiness, which solutions are being tested, and where our industry needs more support. 

The survey is open for your participation until Friday 12th January 2023. 

December may be in full swing with the end of the year in sight, but we still have a few more virtual events for you to join, to keep you merry, and full of insight! 

From understanding streaming behaviour with Samsung ads and our Latest State of the Nation with our Chief Economist Daniel Knapp to a dedicated DSA Town Hall on the latest Tech Lab Specifications, we have a whole host of industry information sessions ready for you to dive into. 

All our events are free and can be joined virtually, so why not check them out below and register to secure your place today?

11th December | 17:00 CET

Join us for our latest Digital Services Act (DSA) Town Hall as we discuss the recent release of the technical specifications for the DSA Ads Transparency Solution Approach by IAB Tech Lab, in collaboration with IAB Europe. This session is a must-attend for anyone in the industry who would like to know more about the recently released technical specifications and how they can be applied.

Digital advertising in Europe is both exposed to cyclical forces of economic uncertainty and structural forces of industry change. 

As the season of 2024 predictions inevitably begins, this webinar takes an empirical, evidence-driven look at the future by analysing 10 forces shaping the future of digital advertising.