After successfully selling his ad platform, AppNexus, to AT&T for an impressive $1.6 billion, Brian O’Kelley found himself in a reflective moment during the COVID pandemic. While attending a yearlong course on supply chain management at MIT, he was struck by a powerful revelation. A lecture slide detailing the carbon footprint of a banana opened his eyes to the real-world impacts of various industries, including the metal commodities trading platform he had founded, which aimed to reduce carbon emissions in trading and transportation. “I wanted to have a real-world impact,” O’Kelley explained, realizing that while his previous work in advertising felt fleeting, the potential for lasting change in other sectors was immense.
As O’Kelley delved deeper into the MIT curriculum, he discovered that a significant portion of the carbon footprint associated with metals like copper and aluminum stems from the mining and smelting processes. This realization ignited a light bulb moment for him: “In the digital world, it’s the opposite.” With newfound clarity, he envisioned a platform for tracking carbon emissions in digital advertising, shifting his focus back to the advertising realm but with a crucial emphasis on sustainability.
In 2021, O’Kelley spun off his commodities business and launched Scope3, a startup aimed at tackling the inefficiencies plaguing digital advertising. Research from the Association of National Advertisers indicated that nearly 25% of funds spent on programmatic ads were wasted, with money frequently lost to intermediaries, fraud, or ads that never reach consumers. “As a relatively new industry, it’s very easy for money to get lost,” O’Kelley noted.
Scope3 seeks to rectify this by ensuring that more advertising dollars are directed toward actual viewership, ultimately reducing carbon footprints as fewer ads mean less energy consumption. The company gathers data and builds models to identify inefficiencies, helping businesses optimize their ad spend while being environmentally conscious.
Earlier this year, O’Kelley faced an unexpected health challenge, undergoing heart surgery that provided him with unexpected downtime. During his recovery, he immersed himself in the world of artificial intelligence. “I finally had time to understand AI,” he remarked, recognizing the technology's growing influence in digital advertising. “I realized that media and AI are intersecting,” he added, noting that AI is increasingly used for ad generation, web page design, and search results.
Eager to explore this intersection further, O’Kelley reached out to GV, one of Scope3’s existing investors, initially seeking competitive insights. To his surprise, he discovered a gap in the market: few founders were pitching ideas that combined AI with climate technology. This revelation led to a significant funding opportunity, with GV leading a $25 million investment round for Scope3, alongside contributions from Aperiam Ventures, Craft Ventures, Room40 Ventures, Venrock, and Virgo Strategic Investments.
While Scope3 continues to gather data and develop AI models, O’Kelley anticipates that the company’s pitch to customers will mirror its existing focus on digital advertising. “We expect there to be a lot of alignment between economic cost and environmental cost,” he concluded.
By blending advertising technology with a commitment to sustainability, O’Kelley and Scope3 are poised to redefine the landscape of digital marketing, making it not only more efficient but also more environmentally responsible. This innovative approach could pave the way for a new era in advertising, where profit and planet go hand in hand.
