The key question for the future of out of home? How to balance profit and planet

Emphasizing the imperative for out of home leaders to prioritize sustainability over profit, Mike Smith (CEO, Open Media) suggests ways to drive industry-wide change towards environmental accountability and innovation.

Profit or planet? That’s the question we should be asking ourselves as leaders in the out of home space. Conscious advertising is shaping the narrative for brands and the environment alike. Right now, we're standing at a crossroads, where we need to look beyond the numbers on our balance sheets and consider the wider impact we're making on the world around us. So, where do we start?

Leading the charge for sustainability

In 2022, Open Media became the first B Corp Outdoor Media Owner in the UK & Europe. Our B Corp journey has taught us that we’re not going to be able to embrace more sustainable practices on our own. While we are committed to challenging industry norms and minimizing our environmental footprint, the question for us now is, ‘how do we help others do the same?’

Digital out of home (DOOH) does offer real solutions in this space. Pioneering the carbon calculator, powering down screens and more.

Groups like Ad Net Zero (ANZ) and Front Foot are helping support and accelerate the process. ANZ provides practical steps for companies to take and tools to adopt. 

As well as rallying professionals behind a universal vision, ANZ also offer a training qualification for best practice in sustainability.

Brands, media owners, and agencies are not just seeking ways to minimize their carbon footprint; they are also striving to align with industry and company environmental, social, and corporate governance (ESG), climate, or Net Zero commitments. Regulatory reporting requirements from the c-suite add another layer of urgency.

So we should advocate for OOH (out of home) as the most eco-friendly choice among advertising methods and encourage brands to make eco-conscious choices in their advertising strategies.

When it comes to ESG research, industry advocate Outsmart reveals that OOH ranks number one in environment and community versus other medias.

A recent collaborative report from Outsmart and KPMG - 'Low Carbon, Low Power: An analysis of OOH energy consumption and CO2 emissions' - found that OOH makes up less than 3.5% of the total carbon footprint of the UK’s advertising activities.

The sector's sustainability goals are clearly on track, however, there's still a lot of work to be done.

Empowering sustainability: UniLED's energy reporting platform trial

The real challenge going forward lies in the way we measure and report our energy usage. It's about getting the facts right, understanding our impact, and figuring out how to significantly reduce our energy emissions.

In Q1 of 2023, Open Media proudly launched our new carbon calculator service in partnership with UniLED , Starling Bank and Electric Glue. This is the first time that “in-use” DOOH screen energy use has been recorded live in-situ for a brand and media agency.

Independently verified by UniLED and powered by a unique methodology created by 2030hub, the calculator provides a more granular view of emissions used in DOOH advertising.

All emissions generated by the campaign were offset via Ecologi’s offsetting programmes, funding tree-planting, forest protection in Eastern Colombia, and solar electricity generation in Indonesia.

It's been an industry first to offer a comprehensive campaign-level analysis of environmental impact, a critical move towards accountable and sustainable advertising practices.

Our objective was clear: establish a universally agreed methodology to capture precise data on DOOH campaign energy usage.

Beyond B Corp: Shifting norms for a sustainable future

Over the past two years, Open Media's B Corp journey has seen us putting our planet first and foremost in a number of ways. It's not just about tweaking our operations; it's about fundamentally reshaping how we deliver our campaigns.

Powering down screens during non-peak hours, for example, has had a positive response from local communities because it demonstrates a commitment to minimising disruptions to local communities and wildlife patterns. This strikes a balance between delivering effective campaigns for clients and maintaining positive community relationships, crucial for sustainable practices.

Companies looking for solutions can also prioritize end-of-life considerations, focusing on recycling and reusing components. At Open Media we are currently conducting life cycle assessments to inform how we build and operate digital screens. We’re also rolling out VistaTrack software across our Connect network to have even more granular visibility over ourselves and our clients’ emissions, as well as aiming for the full-time team to be carbon literate by the end of Q1. 

Discover more about certifications here.

It's inspiring to see other companies putting sustainability at the heart of what they do too.  Energy company OVO has utilized real-time data from the National Grid ESO to power its latest DOOH campaign. This campaign was strategically scheduled to coincide with greener grid times, advocating for a shift in perspective towards energy consumption.

It features a minimalist green design with white text proclaiming, "If you’re reading this, it’s a greener time to use energy," prompting viewers to reconsider their energy usage habits.

Utilizing programmatic buying technology developed by Goodstuff and Assembly, the campaign automatically bids for ad placement during periods when the grid is greener. This ensures that the message is only displayed during environmentally favorable times.

It underscores the potential of innovative collaboration between creative minds and technology to drive positive change in energy consumption behaviors.

We have seen Clear Channel investing in technologies that help reduce energy consumption - upgrading to LED tubes in classic advertising panels nationwide at scale.

Meanwhile, Ocean plans to reduce carbon emissions by 42% by 2030 and reach net zero by 2050 as part of the Paris Agreement. This will see them looking at everything from more sustainable screens to lighting and rewilding.

Positive choices like these show a clear shift away from traditional profit-centric models. A chance for companies to show their commitment to both profitability and ethical conduct.

Taking action for a greener future

We have to pave the way for a conscious and thriving OOH advertising industry that prioritizes both profitability and planetary health.

It's not just about minimizing environmental impact; it's about fundamentally altering how the industry operates.

To shape the future of OOH advertising successfully, we need to lead the way in responsible practices, from procurement to production to distribution, prioritising sustainability at every step of the process.

We need to continuously innovate and invest in technologies and practices that reduce our environmental footprint. Whether it's developing energy-efficient screens or implementing sustainable materials in our campaigns, innovation is key to driving positive change.

We need to take accountability for reporting standards across the industry by establishing clear metrics and benchmarks for sustainability. It might be looking at carbon accounting software and actively using the results to offset our carbon footprint via companies like Ecologi and urging more media owners and vendors to do the same.

This is our opportunity to bring fresh ideas to the table and challenge the norms that have guided our industry for too long. Coming together to share knowledge and progress towards aligning our reporting standards is key.

Education, amplification and impact

By fostering partnerships with like-minded companies and organizations through organizations like ANZ, we can amplify our impact.

If we educate our clients about the importance of sustainability in advertising, we create awareness and inspire action, creating a ripple effect that drives widespread adoption of sustainable practices. By working together, we can share resources, expertise, and best practices to accelerate progress towards sustainability goals. This approach will not only attract environmentally conscious partners, but resonate with an audience increasingly prioritizing brands that align with their values.

By listening, learning, and collaborating, we can drive collective action and create lasting change. 

But we aren’t going to get there on our own.