As the digitally developed businesses evolve around more complex data-intensive applications and more user data is created and gathered on a daily basis — publishers, marketers, and companies should focus on possible methods to buy, sell and manage audience data beyond the standard suite of analytics tools.
What is Data Management Platform?
A Data Management Platform (DMP) accumulates, organizes and activates first-party, second-party, and third-party audience data from multiple data sources such as online, offline, and mobile sources. The DMP then utilizes these collected data to create detailed profiles of customers that drive targeted advertising and personalization initiatives.
It then makes these unidentified customer profiles available to other tools like demand-side platforms (DSPs), ad exchanges, and supply-side platforms (SSPs). It improves targeting, personalization, and content customization. A DMP is the backbone of digital marketing, enabling organizations to get a clear picture of their customer needs in a better way.
Data Management Platform: Working
A DMP collects all your data from any point of contact with your client. The contact mode might be digital– your website, mobile app, marketing campaigns, social media, etc., and sometimes offline– store information, call center inquires, etc.. It collects third-party data as well. Then, the DMP builds audiences and uses data to push the audiences into buying /execution points.
The DMP then optimizes your results using replica audiences as a next step. A replica audience term determines the same characteristics as your best-performing customer groups. With the gathered data under one roof, the DMP analyzes and tracks your best-performing clients and develops replica audiences that are very similar to it. In addition, this method is a great way to turn the replica audiences into profitable customers for your organization.
The DMP gathers response data and follows the same process again with the new data collected as a final step. Moreover, this process is a loop that continues to develop and optimize to fine-tune your campaigns in real-time and discover new audiences. Using replica audiences, a DMP can support you to find new audiences that are likely to buy and automatically match your marketing messages with the right audiences.
How to choose the right Data Management Platform
Choosing the right Data Management Platform means organizing your demands as a marketer with your technology stack. Most of the businesses out today indicate that selecting a DMP is people- and device-based that leverages required compliant third-party data and traverses between known and unknown customer information.
Significant functions of DMP
Merging a DMP into your marketing stack will allow you to transform into a brighter, more efficient, and data-driven marketer.
The below listed are some of the significant functions that a DMP offers for you to take into consideration:
- Robust data collection: The ability to collect various offline and online sources.
- Data classification & structure: The ability to structure your data based around user attributes for future segmentation, engagement, flexible event definition, and value assignment.
- Integration with media buying platforms (networks, exchanges, DSP)
- Integration with 2nd and 3rd party data providers
- Centralized audience analytics & reporting: providing on a campaign and audience level
Business Benefits of Data Management Platform
- Gather all the data you collect in one place
The data management platform enables you to quickly gather data from your sources and business partners. For this, you have to implement pixels. Rest will be done automatically by a powerful DMP engine. Through events and attributes, you can collect data about users’ activity.
- Use 3rd party data to find new markets
One of the substantial benefits of a data management platform is receiving access to our third-party data- information about internet users from worldwide markets. It is an excellent opportunity to identify new needs for your product by using high-quality user profiles that include general interest, purchase intentions, and demographic data.
- Analytics on DMP – gain audience insights
If you do not have enough data about your audience, you can’t design an adequate customer journey. The DMP brings to light information about audience composition. It reveals knowledge about your visitors – their interests, purchase intentions, and demography.
- Create a complete view of your customers
DMP can assist you in enriching your CRM system using data about internet users from all around the world to get a complete view of the customer. With Big Data analytics and Machine Learning algorithms, your customer’s data are connected to the external database that includes information about users from all around the world.
Machines match the user profiles and fill the gaps in your customers’ profiles, such as interests, purchase intentions, age, or income. They create a 360-degree customer, which helps you deliver more relevant messages to your customers and run more effective campaigns.
- Target your audience by creating custom segments
Data Management Platform allows you to store and manage all the data you collect. It enables you to target your specific audience group, i.e., people who visited your product site and are interested in modern design.
Mix Events & Attributes through AND, OR, NOT logical operators, define several occurrences and data validity. Mixed all together makes a powerful tool for you, and all the data is held in the DMP heart.
