Introduction to in-house ad-tech contracts
Consumer packaged goods giant Kimberly-Clark has been gaining greater control over its media strategy and ownership of data by bringing its ad-tech contracts in-house. This move enables brands to exert more control over their data rather than relying exclusively on agencies. Since initiating this in-house strategy in 2022, the company has experienced positive outcomes and plans to continue this approach. As a result of this transition, Kimberly-Clark has been able to optimize its advertising campaigns by leveraging consumer insights and data more effectively. Furthermore, this strategic shift has allowed for enhanced creativity and innovation in ad content, resulting in better engagement and overall performance metrics for their brands.
Growing trend in the advertising sector
In-house ad-tech contracts are gaining traction as a potential solution for addressing transparency and media quality concerns in the advertising sector. A survey by the Association of National Advertisers found that 52% of participants possessed direct demand-side platform (DSP) data access through contracts. This growing trend highlights the increasing desire among advertisers to have greater control and insight into their ad campaigns. By adopting in-house ad-tech contracts, companies are able to closely monitor and optimize their media investments while minimizing potential issues related to ad fraud and brand safety.
Positive outcomes for Kimberly-Clark
Mairi Fogle, global media tech product owner at Kimberly-Clark, stated that this in-house strategy has enabled the company to allocate resources toward better-quality media and identify areas where they were overpaying for inventory. Consequently, the company has achieved a 47% reduction in cost per thousand impressions (CPMs). This significant cost reduction has not only optimized Kimberly-Clark’s advertising budget but also streamlined their media purchasing process. As a result, the company can now invest more confidently in targeted marketing campaigns, ensuring maximum return on investment and enhanced audience engagement.
Experts recommend a balanced approach
However, experts recommend that in-house ad-tech contracts should only be one component of a brand’s programmatic buying strategy. Incorporating a diverse and complementary mix of programmatic solutions, such as agency partnerships and third-party ad-tech platforms, can maximize reach and performance. This multipronged approach not only offers flexibility and better targeting capabilities, but also fosters innovation and drives value across the entire marketing ecosystem.
Challenges with agency-owned contracts
When contracts with ad-tech providers are owned by agencies, brands may lack access to crucial audience data. This can lead to difficulties in understanding the target market and optimizing advertising campaigns for maximum impact. Brands must advocate for increased transparency and collaboration with their agencies to ensure the availability of this valuable data for making informed decisions.
Benefits of direct data access
In-house strategies allow brands to directly access and analyze data, granting them greater influence over their media strategies. This direct access offers valuable insights into consumer behavior, preferences, and trends, ultimately enabling brands to make more informed decisions for their marketing campaigns. Consequently, this level of control allows companies to optimize their media strategies for maximum impact and return on investment.
Discovering low-quality inventory sources
For Kimberly-Clark, this uncovered previously unknown low-quality inventory sources. This discovery led the company to reevaluate its supply chain management strategy, ultimately resulting in the implementation of stricter quality control measures. As a result, Kimberly-Clark now boasts a more reliable and transparent inventory tracking system, ensuring a consistently high-quality product for consumers.
Developing a supply path optimization tool
The company is now developing a supply path optimization tool to prevent such 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 placements and higher return on investment.
First Reported on: adweek.com
FAQs
What is the primary reason for companies to bring ad-tech contracts in-house?
The primary reason for companies to bring ad-tech contracts in-house is to gain greater control over their media strategy and ownership of data. This allows brands to optimize their advertising campaigns more effectively by leveraging consumer insights and data, rather than relying exclusively on agencies.
How can in-house ad-tech contracts contribute to cost reduction?
By bringing ad-tech contracts in-house, companies like Kimberly-Clark can allocate resources toward better-quality media and identify areas where they were overpaying for inventory. This has resulted in a significant reduction in cost per thousand impressions (CPMs) and an optimized advertising budget for the company.
What are the challenges with agency-owned contracts?
With agency-owned contracts, brands may lack access to crucial audience data, leading to difficulties in understanding the target market and optimizing advertising campaigns for maximum impact. To address this issue, brands should advocate for increased transparency and collaboration with their agencies.
What benefits come from having direct data access through in-house ad-tech contracts?
Direct data access allows brands to gain valuable insights into consumer behavior, preferences, and trends. This enables 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 did bringing ad-tech contracts in-house affect Kimberly-Clark’s inventory sources?
Kimberly-Clark discovered previously unknown low-quality inventory sources after implementing in-house ad-tech contracts. This led to the implementation of stricter quality control measures, resulting in a more reliable and transparent inventory tracking system for the company.
What is the purpose of the supply path optimization tool being developed by Kimberly-Clark?
The supply path 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 return on investment.
