KimberlyClark Adopts InHouse AdTech Contracts
Introduction to internal advertising technology contracts.
Consumer packaged goods giant Kimberly-Clark has brought its ad tech deal in-house, gaining more control over its media strategy and data ownership. This measure will allow brands to have more control over their data instead of relying solely on agencies. After implementing this internal strategy in 2022, the company has seen positive results and plans to continue this approach. Thanks to this change, Kimberly-Clark was able to effectively use consumer insights and data to optimize its advertising campaigns. Additionally, this strategic shift enabled greater innovation and creativity in advertising content, resulting in better engagement and overall performance metrics for their brands.
A growing trend in the advertising industry
In-house ad tech contracts are gaining popularity as an alternative solution to transparency and media quality issues in the advertising industry. A survey conducted by the Association of National Advertisers found that 52% of participants had direct access to demand-side platform (DSP) data through contracts. This growing trend highlights advertisers' desire for more control and visibility over their advertising campaigns. By adopting internal ad tech contracts, companies can closely monitor their media investments and optimize them, reducing issues related to ad fraud and brand protection.
Positive results for Kimberly-Clark
Mary Fogel, global owner of media technology products at Kimberly-Clark, says this internal strategy allows the company to allocate high-quality media and identify areas that pay the most for sharing. As a result, the company achieved a 47% reduction in cost per thousand impressions (CPM). This significant cost reduction not only simplified Kimberly-Clark's advertising budget, but also simplified the media buying process. As a result, businesses can now have more confidence in targeted marketing campaigns, which will maximize return on investment and increase audience engagement.
Experts recommend a balanced approach
However, experts recommend that in-house ad tech offerings be part of a brand's programmatic buying strategy. Integrating diverse and complementary programmatic solutions, such as partnerships with third-party ad tech platforms and agencies, can maximize reach and performance. This multifaceted approach not only allows for flexibility and better targeting, but also drives innovation and creates value across the entire marketing ecosystem.
Challenges related to contractual agency control
When contracts with ad tech providers are handled by agencies, brands are unable to access important audience data. This creates difficulties in understanding the target market and optimizing advertising campaigns for maximum impact. Brands should work with their organizations to achieve greater transparency and ensure decisions are made to make this valuable information available.
Live Data Access Facility
Internal strategies allow brands to access and analyze data directly, giving them greater influence over their media strategy. This shortcut provides valuable insights into consumer behavior, preferences, and trends, allowing brands to make more informed decisions for their marketing campaigns. Therefore, this level of control allows companies to optimize their media strategies for maximum impact and return on investment.
Identification of sources of substandard supplies
For Kimberly-Clark, this revealed detailed sources of previously unknown quality materials. This discovery led the company to reevaluate its supply chain management strategy, which ultimately led to the implementation of stricter quality control systems. As a result, Kimberly-Clark now has a more reliable and transparent asset tracking system, ensuring consistently high quality products for customers.
The company is currently developing a path-to-purchase optimization tool to avoid low-quality media sources in the future. This advanced 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 higher return on investment.
First reported by adweek.com.
Frequent questions
What is the number one reason companies hire in-house ad tech offerings?
The main reason companies enter into internal ad tech agreements is to gain more control over their media strategy and data ownership. This allows brands to effectively optimize their advertising campaigns using customer insights and data rather than relying solely on agencies.
How can in-house ad tech contracts help reduce costs?
By outsourcing ad tech contracts in-house, companies like Kimberly-Clark can allocate high-quality media and identify areas where they overpaid for inventory. This has led to significant reductions in cost per thousand impressions (CPM) and optimization of advertising budgets for companies.
What are the challenges associated with agency contracts?
With agency-owned contracts, brands can lack valuable audience data, making it difficult to understand their target market and optimize advertising campaigns for better results. To solve this problem, brands must advocate for greater transparency and collaboration with their organizations.
What are the benefits of direct access to internal ad tech contracts?
Direct access to data allows brands to gain valuable insights into consumer behavior, preferences and trends. This allows them to make more informed decisions for their marketing campaigns, optimize their media strategies for maximum impact, and achieve a higher return on investment.
How has the use of internal ad technology contracts affected Kimberly-Clark's inventory?
Kimberly-Clark discovered previously unknown sources of low-quality products after implementing an internal ad tech contract. This has resulted in a more reliable and transparent inventory tracking system for the company by implementing a strict quality control system.
What is the purpose of the supply chain optimization tool developed by Kimberly-Clark?
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 placement and higher return on investment.