NESTLE CASE
Programmatic Transparency
Nestlé is a multinational food and beverage company headquartered in Switzerland. With a rich history spanning over a century, Nestlé is renowned for its diverse range of products that encompass everything from infant nutrition and coffee to confectionery and pet care. As one of the world's largest consumer goods companies, Nestlé is committed to enhancing people's lives by offering high-quality, nutritious, and delicious products that cater to a global audience.
CLIENT
Nestlé is a multinational food and beverage company headquartered in Switzerland. With a rich history spanning over a century, Nestlé is renowned for its diverse range of products that encompass everything from infant nutrition and coffee to confectionery and pet care. As one of the world's largest consumer goods companies, Nestlé is committed to enhancing people's lives by offering high-quality, nutritious, and delicious products that cater to a global audience.
PROBLEM
As the programmatic landscape has grown increasingly intricate and less transparent over time, the concept of Supply Path Optimization (SPO) has gained prominence for brands. Nestlé was in search of the most efficient method to access premium publisher inventory for its campaign. This objective was twofold: to enhance cost efficiency and to attain a more transparent understanding of the cost structure associated with its digital investments.
SOLUTION
In order to obtain a more transparent understanding of the cost arrangement, we collaborated with publishers to collect comprehensive data from their monetization partners. This allowed advertisers to gain a precise insight into the disparity between their current expenditures (net DSP spending) and the raw/net revenue generated by publishers. The implementation of the Direct Path provided advertisers with an effective "control group" to evaluate whether the existing discrepancies on impressions and revenues with each SSP were within the realm of what can be considered "normal," as it is exempt from any fees.
OUTCOME
We successfully reconciled 99 to 100% of volumes across the majority of major SSPs. Conversely, we identified a significant disparity between the declared DSP expenditures and the raw publisher-side revenues (prior to SSP deductions). On average, approximately 13% of the advertiser's expenditures seemed to vanish within the programmatic process. The most concerning aspect was that this "unknown delta" was observed even within what is considered the most direct path within the ecosystem, involving SSPs directly contracted by publishers. On the other hand, our disintermediated solution, the Direct Path, showcased exceptional outcomes, achieving 100% reconciliation for both volume (impressions) and revenue.
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