Introduction to Internal AdTech Contracts
Consumer products giant Kimberly-Clark is gaining more control over its media strategy and data ownership by bringing ad tech contracts in-house. This move allows brands to have more control over their data instead of relying solely on agencies. Since the start of this internal strategy in 2022, the company has achieved positive results and plans to continue this approach. As a result of this transition, Kimberly-Clark was able to optimize its advertising campaigns by more effectively using consumer insights and data. Additionally, this strategic shift has resulted in greater creativity and innovation in advertising content, leading to improved levels of engagement and overall brand performance.
A growing trend in the advertising sector
In-house ad tech contracts are gaining traction as a potential solution to media quality and transparency issues in the advertising industry. In a survey conducted by the Association of National Advertisers, 52% of participants had direct access to demand-side platform (DSP) data through contracts. This growing trend highlights advertisers' growing desire to gain greater control and insight into their advertising campaigns. By outsourcing ad tech in-house, companies can closely monitor and optimize their media investments, minimizing potential ad fraud and brand safety issues.
Positive results for Kimberly-Clark
Mairi Fogle, owner of global media technology company Kimberly-Clark, notes that this internal strategy allows the company to focus resources on higher quality media and identify areas where the company is paying too much for inventory. As a result, the company was able to reduce cost per thousand impressions (CPM) by 47%. This significant cost reduction not only optimized 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, ensuring maximum return on investment and increasing audience engagement.
Experts recommend a balanced approach
However, experts recommend that internal technology contracts be just one component of a brand's programmatic acquisition strategy. Combining a diverse and complementary mix of programmatic solutions, such as agency partnerships and third-party ad tech platforms, can maximize reach and effectiveness. This multifaceted approach not only provides flexibility and enhanced targeting capabilities, but also drives innovation and adds value to the entire marketing ecosystem.
Problems with agency agreements.
If the contract with the ad tech provider is owned by an agency, the brand may not have access to important audience data. This can make it difficult to understand your target market and optimize your advertising campaigns for maximum impact. Brands must advocate for greater transparency and collaboration with their agencies to ensure this valuable data is available to make informed decisions.
Benefit from direct access to data
The internal strategy allows brands to access and analyze data directly, giving them greater influence over their media strategy. This direct approach provides valuable insights into consumer behavior, preferences, and trends and ultimately allows brands to make more informed decisions about their marketing campaigns. As a result, this level of control allows companies to optimize their media strategy for maximum impact and return on investment.
Obtain low quality inventory
For Kimberly-Clark, it uncovered a previously unknown source of defective inventory. This discovery led the company to reconsider its supply chain management strategy, eventually leading to the introduction of stricter quality control measures. As a result, Kimberly-Clark now has a more reliable and transparent inventory tracking system to ensure consistently high-quality products for consumers.
The company is developing tools to optimize supply chains to avoid using low-quality media sources in the future. This powerful 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 a higher return on investment.
First: on adweek.com.
Frequently asked questions
What are the main reasons why companies enter into internal advertising contracts?
The main reason companies enter into ad tech contracts is to gain greater control over 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 advertising agencies.
How can proprietary ad tech contracts help reduce costs?
When negotiating their ad tech contracts, companies like Kimberly-Clark can focus their resources on higher quality media and identify areas where they are overpaying for inventory. As a result, the cost per thousand impressions (CPM) is significantly reduced and the company's advertising budget is optimized.
What are the difficulties of agency agreements?
Agency-owned contracts leave brands without access to critical audience data, making it difficult to understand their target market and optimize campaigns for maximum impact. To address this issue, brands must advocate for greater transparency and collaboration with their agencies.
What are the benefits of direct access to data through an internal technology contract?
With direct access to data, brands can gain valuable insights into consumer behavior, preferences, and trends. This allows them to make informed decisions about their marketing campaigns, optimize media strategies for maximum impact and achieve a higher return on investment.
How do proprietary ad technology contracts affect Kimberly-Clark's inventory sourcing?
Kimberly-Clark first discovered an unknown source of low-quality inventory after entering into an internal technology contract. This has led to stricter quality control measures and a more robust and transparent inventory tracking system across the company.
What is the purpose of the Kimberly-Clark Supply Chain Optimization Tool?
Supply chain optimization tools aim 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 a higher return on investment.
