Home Online Advertising Nestlé Launches Internal Programmatic Unit To Scour Digital Media Deals

Nestlé Launches Internal Programmatic Unit To Scour Digital Media Deals

SHARE:

Nestlé has launched a team of media and tech experts to improve its programmatic supply and analytics.

The new hybrid unit, called the Global Digital Media Center of Competencies (DCoC), consists of internal media talent and executives from Nestlé’s holding company vendors, WPP, Publicis, IPG and Dentsu.

The team focuses on six core competencies: supply and trading, audience operations, retail media, dynamic creative optimization, ad operations and media transparency, said Sebastien Szczepaniak, global head of sales and ebusiness, which includes ecommerce and digital marketing.

The move allows Nestlé’s country-based media groups to tap the DCoC for near real-time support when negotiating contracts with tech companies or publishers or facing thorny reconciliation and analytics questions, Szczepaniak said.

The only tech or data vendor Szczepaniak cited as part of the DCoC so far is Amino Payments, a blockchain tech company for digital supply chain payments, processing and analytics, which is part of the media transparency competency’s toolkit.

Media transparency tests in the past year have already helped Nestlé trim its SSP roster from about 65 vendors to less than 10, each with direct supply relationships.

Google and Amazon are two of the SSPs working with the DCoC, but Szczepaniak said walled garden budgets will decrease under the new program if the platforms don’t meet supply transparency standards.

That may “trigger some friction” with big technology companies, but “that’s an important part of what’s happening right now,” he said.

Szczepaniak declined to provide specifics on the standards that digital media suppliers will need to meet, but he said the DCoC has developed Nestlé’s Negotiated Terms, which are contractual guarantees for inventory quality, scale and analytics that programmatic partners must commit to.

The DCoC also manages Nestlé’s centralized first-party data asset, a key investment moving forward as the brand cuts its third-party data use and cookies diminish, he said. Nestlé is cultivating its own data and partnering with second-party data companies, such as retailers with online ad platforms where consumer data sets can be commingled.

Those second-party data deals are managed by the DCoC’s retail media competency. Large retailers like Walmart and Target, for instance, have ad platforms where the brand’s and store’s first-party data sets can be matched for online targeting.

Szczepaniak said the first-party and second-party data activations are critical for the DCoC to achieve an ambitious goal: doubling the rate of personalized messages from 20% of Nestlé’s digital media impressions this year to 40% by the end of 2020.

Must Read

Comic: Gamechanger (Google lost the DOJ's search antitrust case)

Judge Mehta’s Remedies For Google’s Search Monopoly Won’t Cure What Ails Publishers

Remedies in the federal search antitrust case against Google landed with a thud earlier this week. Most publishers and ad industry pundits were sorely disappointed.

Conversion APIs Are Becoming Table Stakes – But Not All Brands Have Bought In

CAPI integrations have moved from a nice-to-have to a necessity for anyone operating within walled garden environments. Now they’re laying the groundwork for an outcomes-driven ad ecosystem.

Peppa Pig

The Media And Retail Deals Behind The Peppa Pig Franchise Expansion

Peppa Pig is everywhere. Whether or not you have children, you likely know the little girl pig from the kid’s cartoon show. But the Peppa media franchise is just getting started.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How A For-Profit College Is Using CTV Ads To Win Over New Students

The American College of Education partnered with performance TV company MNTN to better reach its audience of adults seeking higher education.

Critics Say The Trade Desk Is Forcing Kokai Adoption, But Apparently It’s Up To Agencies

Is TTD forcing agencies to adopt the new Kokai interface despite claims they can still use the interface of their choice? Here’s what we were able to find out.

Why Big Brand Price Increases Will Flatten Ad Budgets

Product prices and marketing budgets are flip sides of the same coin. But the phase-in effects of tariffs, combined with vicissitudes of global weather and commodity production, challenge that truism.