The term Data Management Platform (DMP) is somewhat of a buzzword these days in marketing technology circles. And for good reason. DMPs are rapidly becoming the tools that trendsetting brands can’t live without, especially if they want to keep their data organised. And here’s why.
The Internet of Things
As we all know, during the past few decades society has become increasingly digitalised, resulting in the generation of huge amounts of data. For the most part, data is generated by and for individuals. For example, at home we might want to create and use data to keep track of our running stats. But businesses also create and use data, to interact with clients for example, predict trends and register and monitor successes. And if you think the amount of data we currently generate is huge, think again. With the advent of the Internet of Things (IoT) the amount of data we generate will continue to grow exponentially.
Believe it or not, consumers expect businesses to remember every interaction they’ve had with them, as well as their interests. Even my mother says that she doesn’t understand why she’s still presented with an ad for a product she’s already bought, while my dad despairs about ads that aren’t tailored to him. “Sorry guys, I’m not interested in this SUV, I only need a small car.”
Luckily, there are organisations that understand that this “big” data is the “new oil” and they are now organising and using it in efficient ways. It can result, for example, in a beer ad that’s tailored to my interests: “Cool, this beer brand likes the same music as me!” Or a bank’s app that doesn’t try to sell me a mortgage when I already have one through them. In our cluttered world, truly targeted and customised ads will help brands break through that clutter and help make the wood visible through the trees.
But to be able to do this, your data must be neatly organised on a platform that can slice and dice it in every possible way. This data is then complemented with information that you didn’t know about your customers and visitors to your shop. Finally, the data combination is made available via an external platform, with a DMP serving as the tool that can make it all happen!
How a DMP works
By now you’re probably wondering, what a DMP actually does. Well, these three things should help make things clearer.
1: Data collection
Without doubt, the collection and importation of data into a DMP is the first, and most important, step. This includes all kinds of data generated by a brand. For example, information about website visits, such as the pages that were visited. Or media data, such as engagement metrics from a display campaign. Alternatively, it can be CRM data, such as a list of high-profile customers. These types of data are generally considered “first-party data” and it is owned by the company collecting it.
In addition to owned data, a DMP can also add data that isn’t owned by you – also known as second-and third-party data. Second-party data is first-party data, but from another single source and that’s traded with you. Third-party data is data from consumers, collected by multiple sources and combined to create higher-value segments.
2: Data segmentation
When data flows into a DMP, a marketer can begin building segments by combining the available information in a smart way. A car manufacturer could, for example, create a segment of people who have visited a page about their new SUV, have a higher-than-average income and have recently visited a car-buying website.
3: Data activation
Creating segments and analysing their overlaps will give you great insights. But activating a newly created audience segment on an external platform also returns great results. DMPs connect to almost all major DSPs, SSPs and DCOs so that these segments can be used to build data-driven campaigns. In the case of the car manufacturer, for example, the higher-income prospects could be targeted with a video ad showing an SUV.
To summarise, a DMP is the backbone of data-driven marketing. It serves as a unifying platform to collect, organise and activate your first-, second- and third-party audience data from any source, including online, offline or mobile. Essentially, it’s a piece of software that sucks up, sorts and houses information, then spits it out in a way that’s useful for marketers, publishers and other businesses.
A DMP should be at the core of every marketing process and strategy. In a world in which businesses are generating and collecting increasing amounts of data, the DMP is an essential tool that simply must, and will, be integrated into the tech stack so that it can organise data in a manner that creates greater relevancy and insights. This will result in smarter business decisions, tailored experiences and more effective campaigning.
Or do you need help with your DMP? If you have any questions about implementing a DMP in your business, please don’t hesitate to ask! These questions can vary from: “How can I Implement a DMP into my marketing strategy?” to “How do I build an audience in a DMP?” Whatever, Emark is here to help! Just pop us an email and we’ll help you any way we can.