Access internal ad technology agreements
Consumer products giant Kimberly-Clark is gaining more control over media strategy and data ownership by bringing ad tech deals in-house. The move gives brands more control over their data instead of relying solely on agencies. Since starting this internal strategy in 2022, the company has achieved positive results and plans to continue this approach. As a result of this transformation, Kimberly-Clark has been able to use consumer insights and data more effectively to improve advertising campaigns. Additionally, this strategic shift improved creativity and innovation in advertising content, resulting in better engagement and overall performance for their brands.
A growing trend in advertising
In-house ad tech deals are gaining traction as a potential solution to transparency and media quality issues in the advertising industry. A National Association of Advertisers survey found that 52% of respondents have direct access to demand side platform (DSP) data through a contract. This growing trend highlights advertisers' desire to have more control and insight into their advertising campaigns. By entering into in-house advertising technology contracts, the company is able to closely monitor and optimize media investments, reducing potential issues related to advertising fraud and brand protection.
Positive results for Kimberly Clark
This internal strategy has allowed the company to allocate resources to high-quality media and identify areas where it is overpaying for inventory, says Mairi Vogel, global media technology product owner at Kimberly-Clark. This helped the company reduce its cost per thousand impressions (CPM) by 47%. This significant cost reduction not only improved Kimberly-Clark's advertising budget, but also simplified the media buying process. As a result, businesses can now invest more confidently in targeted marketing campaigns, maximize ROI and increase audience engagement.
Experts recommend a balanced approach
However, experts recommend that inbound ad tech deals be just one element of a brand's programmatic buying strategy. By incorporating a diverse, complementary mix of programmatic solutions, such as: Third-party ad tech platforms, such as agency partnerships and ad tech platforms, can maximize reach and performance. This multi-layered approach not only allows for flexibility and better targeting, but also drives innovation and increases value across the marketing ecosystem.
Agency contract problems
When contracts with ad technology providers are owned by agencies, brands may not have access to important audience data. It can be difficult to understand your target market and optimize advertising campaigns for maximum impact. Brands should advocate for greater transparency and collaboration with their organizations to ensure this valuable information is available to make informed decisions.
Access live information
In-house strategies allow brands direct access to and analysis of data, giving them greater influence over their media strategies. This direct access provides valuable insights into consumer behaviour, preferences and trends, ultimately enabling brands to make more informed decisions for their marketing campaigns. Therefore, this level of control allows companies to optimize their media strategies to achieve maximum impact and return on investment.
Find sources of substandard inventory
For Kimberly-Clark, previously unknown sources of substandard inventory have emerged. This discovery prompted the company to rethink its supply chain management strategy and implement more stringent quality control systems. As a result, Kimberly-Clark now has a more reliable and transparent inventory tracking system, ensuring that high-quality products are consistently delivered to consumers.
To avoid such poor media sources in the future, the company is now developing a supply chain optimization tool. This cutting-edge tool aims to significantly improve the efficiency and transparency of the digital advertising supply chain. By identifying and prioritizing high-quality media sources, advertisers can expect better ad placement and a higher return on investment.
First reported: adweek.com
Frequently asked questions
What is the main reason companies do ad tech deals?
The main reason companies are interested in ad tech is to gain more control over media strategy and ownership of data. This allows brands to optimize advertising campaigns more effectively using consumer insights and data, rather than relying on exclusive agencies.
How can in-house advertising technology contracts help reduce costs?
By bringing ad tech deals in-house, companies like Kimberly-Clark can allocate resources to high-quality media and identify areas where they are overpaying for their inventory. This resulted in a significant reduction in cost per thousand impressions (CPM) and an improved advertising budget for the company.
What are the challenges with agency contracts?
Through agency-specific contracts, brands may not have access to key audience data, which can make it difficult to understand target markets and optimize advertising campaigns for maximum impact. To confront this problem, brands must advocate for more transparency and collaboration with their organizations.
What are the benefits of direct access to data through an internal ad technology agreement?
Access to live data allows brands to gain valuable insights into consumer behaviour, preferences and trends. This allows them to make more informed decisions about their marketing campaigns, optimize their media strategies for maximum impact and achieve a higher return on investment.
How have internal ad tech deals impacted Kimberly-Clark's inventory sourcing?
Kimberly-Clark discovered previously unknown sources of substandard inventory after executing an internal ad technology contract. This led to the introduction of strict quality control systems, resulting in a more reliable and transparent inventory tracking system for the company.
What is the purpose of Kimberly-Clark's supply path optimization tool?
The Supply Pipeline Optimization Tool aims to improve the efficiency and transparency of the digital advertising supply chain. By identifying and prioritizing high-quality media sources, advertisers can expect better ad placement and a higher return on investment.
