Data Management Platform (DMP) is a base to run effective advertising and marketing campaigns. Resources are stating that 63% of marketers reported that their spending on data-driven marketing and advertising increased from last year. In other words, data-driven marketing can be achieved only through an effective audience management platform.
Let’s find out here!
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Today, marketers demand advanced features in order to meet their business needs and customer demands. Data can bring that opportunity for them if they have the right audience management platform that can convert data as a source of reaching marketing goals.
Certainly, most of the companies are generating an ample amount of data daily. Still, most of them have not yet deployed any data management platform or audience 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 know how to start with their current marketing stack.
- And some people are even so excited to know about the audience management platform 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 the Data Management Platform and beyond that to cover all the probable questions that come in your mind.
- What is DMP?
- What are the Ways can DMP Collect Data?
- DMP Functions
- Possible Challenges with DMP
- Best Practices for Audience Management
Let’s get a deep drive!
What is a DMP?
To explain, DMP (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, audience 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.
Certainly, 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 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 center for all of their cross-device behaviors and media interests.
Let’s look at-
What are the Ways DMP Can Collect Data?
Based on available 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 interests, preference, and behavior 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 the DMP, 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
Possible Challenges With DMP
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.
It is not possible with a simple DMP; it can better handle an audience management platform /suite that is capable of integrating with any website or app or any other platforms.
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 platforms is the use of cloud platforms. Otherwise, failing to handle a massive amount of data workload can create troubles.
For this, you need an advanced featured audience management platform to handle scalability with any amount of data with ease and retrieve the same whenever you need.
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.
Here also to handle massive amounts of data properly, you need an audience management platform with better capabilities.
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.
Audience management platforms hold such capabilities to determine which area needs automation without any hassle.
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.
Audience management platforms can provide solutions for it with options to select which actions to perform at a precise level.
Agreeing with Data Privacy and Security Measures
Above all 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.
In order 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?
In order to build transparency and trust in your customer. Audience management platforms hold such capabilities by default.
In addition to this, to reach your data-driven marketing goals, You need to look for other features of audience management platform or DMP.
Let’s discuss out here-
Best Practices for Audience Management
Once you have decided to implement the audience management platform, these are the best practices for maximum utilization of your audience data for data-driven marketing:
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 DMP.
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. To clarify, segmentation of the data may vary based on the type of business you have.
To explain, 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.
To put it in simple, 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.
Above all, when we talk about the best Data Management Platforms in digital media, we have a list of platforms in the market that hold data management platform capabilities.
But, going with the right and advanced featured data management platform that is an audience management suite 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?
To Sum Up:
In short, 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 DMP became the core of the advertising and marketing campaigns to run in the digital ecosystem.
Certainly, the data management platform has paved the way for it, that overcomes all challenges mentioned above in a more effective way.
But to meet an advanced level of data-driven marketing needs, you need to opt for the audience management suite.
Now the real challenge comes to selecting your audience management platform.
Audienceplay is the best DIY audience management platform that can help you perform every operation beyond your expectations with additional features.
Doesn’t it sound great? Try Audienceplay Now!