KimberlyClark Adopts InHouse AdTech Contracts
Introduction to In-House Advertising Technology Contracts
Consumer products giant Kimberly-Clark is gaining greater control over its media strategy and data ownership by striking ad tech deals in-house. The move gives brands more control over their data rather than relying solely on agencies. Since launching this internal strategy in 2022, the company has achieved positive results and plans to continue this approach. Thanks to this transformation, Kimberly-Clark was able to more effectively use consumer information and data to improve its advertising campaigns. Additionally, this strategic shift has increased creativity and innovation in advertising content, leading to improved engagement rates and overall brand performance.
A growing trend in the advertising industry
First-party ad technology deals are gaining traction as a potential solution to the ad industry's transparency and media quality issues. A survey by the Association of National Advertisers found that 52% of respondents have direct access to contract demand platform (DSP) data. This growing trend highlights advertisers' desire for greater control and transparency over their advertising campaigns. By contracting in-house for ad technology, companies can closely monitor and optimize their media investments, reducing potential issues related to ad fraud and brand protection.
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This internal strategy has allowed the company to allocate resources to higher-quality media and identify areas where it is paying too much for its stock, says Mairi Vogel, global owner of media technology products at Kimberly-Clark. As a result, the company achieved a 47% reduction in cost per thousand impressions (CPM). This significant cost reduction not only improved Kimberly-Clark's advertising budget, but also simplified the advertising buying process. As a result, companies can now confidently invest in targeted marketing campaigns, ensuring maximum return on investment and increased audience engagement.
Experts recommend a balanced approach
However, experts recommend that ad tech deals should only be part of a brand's programmatic buying strategy. Incorporating a diverse, complementary mix of programmatic solutions, such as agency partnerships and third-party advertising technology platforms, can maximize reach and effectiveness. This multifaceted approach not only provides flexibility and better targeting capabilities, but also drives innovation and creates value across the entire marketing ecosystem.
Problems related to contracts concluded with the agency
When contracts with ad tech providers are held by agencies, brands may not have access to important audience data. It can be difficult to understand your target market and optimize your advertising campaigns for maximum impact. Brands must advocate for increased transparency and collaboration with their organizations to ensure this valuable data is available to make informed decisions.
Easy direct access to data
In-house strategies give brands direct access to and analysis of data, giving them greater influence over their media strategies. This direct approach provides valuable insight into consumer behaviour, preferences and trends, allowing brands to make more informed decisions about their marketing campaigns. As a result, this level of control allows companies to optimize their media strategies for maximum impact and ROI.
Detecting sources of low-quality inventory
For Kimberly-Clark, this revealed previously unknown sources of low-quality inventory. This discovery forced the company to rethink its supply chain management strategy, which ultimately led to the implementation of more stringent quality control systems. As a result, Kimberly-Clark now has a more reliable and transparent inventory tracking system, providing consumers with consistently high-quality products.
The company is currently developing a supply chain optimization tool to avoid using low-quality media sources in the future. This advanced tool is designed 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 placements and higher ROI.
First report: adweek.com
FAQ
What is the main reason why companies enter into ad tech deals?
The main reason companies enter into ad tech deals is to gain more control over their media strategy and data ownership. This allows brands to more effectively optimize their advertising campaigns using consumer insights and data, rather than relying solely on agencies.
How can in-house ad tech contracts help reduce costs?
By contracting ad tech in-house, companies like Kimberly-Clark can allocate resources to higher-quality media and identify areas where they pay more for inventory. This resulted in a significant reduction in cost per thousand impressions (CPM) and an improvement in the company's advertising budget.
What problems are associated with agency agreements?
Under agency-owned contracts, brands may not have access to critical audience data, which can make it difficult to understand target markets and optimize advertising campaigns for maximum impact. To address this issue, brands must advocate for greater transparency and collaboration with their organizations.
What are the benefits of direct data access through an internal ad tech contract?
Direct access to 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 higher ROI.
How have internal ad tech deals impacted Kimberly-Clark's inventory?
Kimberly-Clark discovered previously unknown sources of low-quality inventory after winning an internal ad technology contract. This led to the implementation 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 chain optimization tool?
The supply chain 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 placements and higher ROI.
