KimberlyClark Adopts InHouse AdTech Contracts

Introduction to internal ad tech contracts

Consumer products giant Kimberly-Clark is gaining greater control over its media strategy and data ownership by acquiring national ad technology contracts. This measure will allow brands to have greater control over their data instead of relying solely on agencies. Since launching 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 information and data. Additionally, this strategic shift has enabled greater creativity and innovation in advertising content, resulting in higher levels of engagement and overall brand performance.

A growing trend in advertising

In-house ad tech contracts are gaining traction as a potential solution to media quality and transparency issues in the advertising industry. A survey conducted by the Association of National Advertisers found that 52% of respondents had direct access to demand platform (DSP) data through contracts. This growing trend highlights advertisers' growing desire for greater control and insight into their advertising campaigns. By bringing advertising technology 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, says this internal strategy has allowed the company to focus resources on higher quality media and identify areas where it is paying too much for inventory. As a result, the company achieved a 47% reduction in cost per thousand impressions (CPM). This significant cost reduction not only optimized Kimberly-Clark's advertising budget, but also simplified the advertising purchasing process. As a result, the company can now invest with greater confidence in targeted marketing campaigns, ensuring maximum return on investment and greater audience engagement.

Experts recommend a balanced approach

However, experts recommend that internal ad tech contracts be just one component of a brand's programmatic buying strategy. Incorporating a diverse and complementary mix of programmatic solutions, such as partnerships with third-party advertising platforms and agencies, can maximize reach and effectiveness. This multifaceted approach not only provides flexibility and better guidance, but also drives innovation and adds value to the entire marketing ecosystem.

Problems with agency ownership contracts

When agencies hire ad tech providers, brands may not have access to critical audience data. This can lead to difficulties understanding the target market and optimizing 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.

Benefits of direct data access

Internal strategies allow brands to access and analyze data directly, giving them greater influence over their media strategies. This shortcut provides valuable insights into consumer behavior, preferences, and trends, ultimately 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.

Identify poor quality stock sources

For Kimberly-Clark, this opened up previously unknown sources of low-quality inventory. This discovery forced the company to rethink its supply chain management strategy, which ultimately led to the introduction of stricter quality control measures. As a result, Kimberly-Clark now has a more reliable and transparent inventory tracking system that assures consumers of consistently high-quality products.

The company is currently developing a supply chain optimization tool to prevent the use of 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 a higher return on investment.
First published on adweek.com

FREQUENTLY ASKED QUESTIONS:

What is the main reason companies invest in ad tech contracts?

The main reason companies outsource ad tech in-house is to gain greater 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 entering into ad tech contracts, companies like Kimberly-Clark can focus their resources on higher quality media and identify areas where they are overpaying for inventory. This led to a significant reduction in cost per thousand impressions (CPM) and optimization of the company's advertising budget.

What are the problems with agency-owned contracts?

Brands with agency-owned contracts may not have access to critical audience data that allows them to understand the target market and optimize advertising campaigns for maximum impact. To solve this problem, brands must advocate for greater transparency and collaboration with their agencies.

What are the benefits of direct access to data through internal ad tech contracts?

Instant 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 Printing Ad Tech Impacted Kimberly-Clark Stock?

Kimberly-Clark identified previously unknown sources of poor quality inventory after winning internal ad tech contracts. This led to the implementation of stricter quality control measures, resulting in a more reliable and transparent system for tracking inventory within the company.

What is the purpose of the Kimberly-Clark 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 a higher return on investment.

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