‘Data Management Platform (DMP) is a base to run effective advertising and marketing campaigns.’
Will you agree to this statement?
Yes, you have to!
To prove, 63% of marketers reported that their spending on data-driven marketing and advertising increased from last year. And data-driven marketing can be achieved only through an effective data management platform.
No doubt, most of the companies are generating an ample amount of data daily. Still, most of them have not yet deployed a data management platform in their marketing ecosystem.
Do you know what could be the possible reason for it?
It’s due to-
- Lack of knowledge of or doesn’t have knowledge on how to start with their current marketing stack.
- And some people are even so excited to know about it and how it can help them in reaching their end goals.
To explain in one line, Data Management Platform can help you in both storing and activating data.
But, this is not enough, so here we are taking you to the complete picture of Data Management Platform that can cover all the probable questions that come in your mind.
Let’s get a deep drive!
What is a Data Management Platform?
To explain, Data Management Platform is software that centralized and segmented your audience to run a precise level of targeting for advertising or marketing campaigns.
In short, data management platforms’ primary function is to collect, organize, segment, and activate data across multiple channels. The audience data could be obtained from first, second, and third-party data.
The data is very much useful to run campaigns to acquire or retain customers either via-
- Programmatic advertising
- Or various marketing channels.
The widespread use case is to target audience on a customized base at large scale to use in programmatic advertising campaigns, owing to the ability of data management platform’s to integrate smoothly with other elements of the ad network ecosystem, such as-
- Demand-side platforms (DSPs),
- Supply-Side-Platforms (SSPs),
- And data exchanges.
As customers are more engaging across multiple devices, your Data Management Platform will become more useful in serving as a centre for all of their cross-device behaviours and media interests.
Let’s look at-
What are the Various Ways to Collect Data?
Based on business models, you have lots of ways to collect data from both online and offline sources of your audience.
Here is an example of some of those-
- Behavioural and demographic data
- Web analytics tools
- Social networks
- Mobile web
- Mobile apps
- CRM data
- Point-of-sale data
- Online video
- TV data
- and many more!
Let’s get a deep insight into-
Once the first-party data is gathered, it’s organized into a series of segments based on organization hierarchy.
Dependent on the type of business model, segments can be divided into different buckets. From the gathered data, a unified view of the customer is acquired.
That will help the marketers and advertisers to get better and precise insights into the audience.
That can clear brands with information like-
- Who’s a loyal customer?
- Who’s the prospective customer?
- What are the interest, preference, and behaviour of the customer?
- What is the best way to reach them effectively?
The last step is to activate data across various platforms that rely on the Data Management Platform, having integrations and open APIs with other platforms.
These are the essential functions of data management platform, Let’s list them out in terse here:
- Gathered data from first, second, and third-party data and online and offline sources.
- Create audience segments and Audience building
- Get insights and audience profile reports
- Activation across multiple platforms
Get a Move on Why DMP’s So Important?
Here we are sharing with you a few stats that can help you to understand the criticality of implementing Data Management Platform in your businesses.
- Data-driven marketing became the utmost priority for digital marketing leaders – 40 % of organizations are going to increase their marketing budget, and 64 % of marketing leaders believe that Data-driven strategies are vital in today’s economy. (Source: invespcro.com). The top practices were-
- Customer journey mapping/analysis
- A/B testing
- Website personalization.
- Data-driven marketing improves ROI, with a campaign that practices data-driven personalization reporting 5-8 x ROI for their campaign spend.
- In a recent study conducted by Infogroup, 62% of marketers determined that they already have a planned budget on marketing solutions, besides 26% planning to spend within the next two years.
Other reasons include-
Most of the marketers are getting aware of the fact that the data-driven marketing strategy drives real-time engagement and, in turn, a better customer experience.
Still, a significant portion of marketers is struggling to implement it in their business. Due to the lack of effectiveness of their technology when it comes to a unified view of the customer.
Indeed, the data management platform is a fulfilled fantasy for data-driven marketers.
That overcomes the major challenge of the marketers to gather entire data from various sources into a single view of the customer.
Important to realize that adding dots is quite complicated for marketers to achieve for a long time.
Certainly, Data Management Platform holds all such capabilities that you’re in search of to start with data-driven marketing.
It enables you to break the silos and bring together complete data in one place.
Data Management Platform can analyze the audience data insights coming from various data sources dependent on that analysis; campaigns can be optimized to reach your target audience.
Who Can Benefit From Using Data Management Platform?
Every entrepreneur, irrespective of their business size and type of business, can leverage from data management platform.
Data Management Platform users can benefit from innumerable benefits that can take them to reach their end goals.
Mostly Data Management Platform users we can see are- Marketers, Publishers, Agencies, and Advertisers.
For Publishers, Data Management Platform can help them to collect complete data from various sources, such as-
- From websites data
- And the data-driven marketing campaigns run throughout the world.
It also enables the publishers to enrich their audience data with additional information of the users that makes the publisher improve CPMs for both-
- Programmatic inventories
- And direct-deals it to the second or third party data exchange.
When it comes to marketers, advertisers, and agencies, Data Management Platforms can be used to recognize and segment customer data at a very precise level and get better insights into their audiences, irrespective of the data source.
All these help the advertisers to better target their audience at the right time with a compelling message to their audience.
That, in turn, helps the advertisers to run an effective campaign and save the extra cost and time spent on advertising campaigns.
To List it in Terse, Top Benefits of Data Management Platform Include-
Build a Single View of the Customer
It brings together all data coming from various sources in one place and breaks down silos giving you a single view of the customer.
Enhance Customer Satisfaction and Retention
DMP data helps you target the audience on a precise level to reach the audience at the need of the hour. That improves customer experience.
Helps to Convert Prospects into a Customer
DMP data helps you to get better insights from audience data on a real-time basis. From that, advertisers can understand who’s their prospects’ customers and run campaigns accordingly.
Provides Continuous Results
It provides long-term solutions to the advertisers by way of real-time and continuous reporting. To make better decisions in the long-run.
A data management platform enables you to get better insights across all devices that can help the advertiser to target an audience on their more engaging channels.
A better understanding of customer preferences and media inclinations permit for hyper-targeted, appropriate ad delivery.
Customized Target Audiences
With a unified view of the customer in one place, you can easily build a more precise level of audience profiles.
Due to the segmentation ability of the Data Management Platform, an advertiser can run campaigns with granular level precision. Reduce the cost of media spend and gain customer trust with more relevant ads.
What are Major DMPs?
When we talk about the best Data Management Platforms in the digital media, we have a list of platforms in the market that hold data management platform capabilities.
But, going with the right data management platform will only help you to reach your intended goals.
Moreover, the budget plays a primary role while selecting your data management platforms along with the features and capabilities it has.
To suggest you, Audienceplay is the free DIY audience management suite that can help you achieve most of your use cases such as-
- And Activation.
Why don’t you give it a spin?
5 DMP Data Management Platform Deployment Best Practices
Once you have decided to implement the Data Management Platform, these are the best practices for better outcomes:
To illustrate, Data onboarding is a procedure of connecting offline data with offline ids of the customers for identity resolution and further leading to an omnichannel marketing experience. Here you need to upload your offline data or your CRM data to Data Management Platform.
To put it another way, Data onboarding is an on-going process keeping up the right technical team to ensure your data structures are organized for maximum and persistent data flows.
Audience segmentation is the process of segmenting the target audience into smaller segments depending on their common character traits. Segmentation of the data may vary based on the type of business you have.
Audience extension is the process where it takes the publisher’s audience and transfers it into a ready-made segment and extends it across multiple channels or devices.
Data activation is the process of making the data stored in the Data Management Platform into action. Here data management platform data acts as a fuel to start the engine of your programmatic advertising.
The segmented data can be used to run precise levels of advertising or marketing campaigns using programmatic advertising. You can also exchange data with your partners or sell it to third parties in an anonymized form and earn income from data.
It’s the first step before you start with the Data Management Platform. Here you need to make the steady transmission of data from multiple sources without getting trapped into any mess.
To be active, ensure that all the sources meet system needs and are compatible with others.
Scalability is one of the significant features of the Data Management Platform to get success with it. DMP must be capable enough to collect every single bit of information from various sources.
One of the most effective scalability features of data management platform is the use of cloud platforms. Otherwise, failing to handle a massive amount of data workload can create troubles.
Certainly, the major challenge is to collect the data from various sources into a single platform and retrieve it when there is a need. By using your hardware network system, you can do that, but it needs extra cost for maintenance.
Data Management Platform handles data in a cloud platform, and here you need to pay the amount only for space you’re using along with the back-up storage.
As data comes from millions of events in seconds and the human can’t handle it manually. All it needs an automation system with a setting in place to handle such information appropriately.
Here you lag to determine the areas where the automation is required and where it’s ineffective or excess.
Troubles of Data Analysis
Before you begin with data analysis, the first thing you must clear with is-
- What type of data you need
- And what it means for your business.
Otherwise, you end with wasting money, time, and seriously devastating to your business.
Agreeing with Data Privacy and Security Measures
Ultimately adopting data privacy and security measures is a groundbreaking moment for an Ad-Tech industry. It’s helpful even in the long run to businesses.
To adhere with it, you must ask yourself with these questions like-
- What type of data you’re collecting, and from which sources?
- Who will have access to the collected data?
- Where you’re storing the collected information, and for how long?
- Compliance Are second and third-parties involved in the operation privacy-compliant?
- Where are you making use of that data?
To build transparency and trust in your customer.
To Sum Up: Obviously, DMP‘s the Need of the Hour for the Digital Industry.
The urgency of maintaining data coming from various sources in businesses increases the demand to make use of it effectively.
Data Management Platform provided a list of benefits to the Ad tech industry. And it became the core of the advertising and marketing campaigns to run in the digital ecosystem.
Data management platform has paved the way for it, that overcomes all challenges mentioned above in a more effective way. Now the real challenge comes to selecting your DMP platform.
Audienceplay DMP is the best DIY platform that can help you perform every operation beyond your expectations with additional features.
Doesn’t it sound great? Try Audienceplay Now!