A Data Management Platform (DMP) is the backbone of all online advertising operations for a digital economy that is becoming more digital each day. With DMPs, you can achieve extraordinary targeting and scale across all of your online advertising channels.
The marketing plans of customers in this era mostly depend on digital platforms. Fewer people go for physical shops and most of them use digital devices to do so. As a result, online advertising campaigns become the most effective strategy out of your marketing plan.
So, Customer data and Behavior pattern tracking is very important in online ecosystem for better optimization and improved campaign performance.
The next question is, how can you process customer data and their behavioural patterns to make revenues from those campaigns.
So, let’s take a scenario:
A user visits a particular site. He/she shows interest in certain goods and tries to know about it. And here’s how it goes.
An ad with this product chases him across all websites and devices after this and tempts him/her to go to the online store and buy it.
But how does this happen? What makes this possible?
Data Management Platform is the answer to this.
You would have heard a lot about the Data Management Platforms, but what exactly are they, why do you need one, how do they work and what are the results you can get by using them?
This article will answer all your questions. So, let’s move ahead to know the important points you need to know when starting with the DMPs.
1)What is a Data Management Platform?
A data management platform is a centralized platform that helps you to collect, organize and activate your data. This data is your first-party, second-party and third-party audience data from an offline/online or a mobile source.
With DMP platforms, you can combine your first-party, second-party and third-party audience data. As a result, this combination of data helps you to create an accurate target audience for you.
And you can accurately target your campaigns to these audiences across third-party ad networks and exchanges and find out which are the campaigns that perform the best for you across all segments and channels.
2) Who can benefit from DMP platforms?
If you are a marketer, advertiser or an agency, DMP platforms are exactly what you need to have. With cut-throat competition all around, your brand needs to find targeted ways to marketing.
DMPs are of great use to agencies, so you can make better media and buying decisions. If you don’t reach the right audience with the right message at the right time, you lose a chance to your competitor.
So to avoid this loss, you want to create ad campaigns that have a high-impact and fetch you greater ROI. And so comes the need to use DMP platforms.
Audience-targeted ads can increase exposure to your most relevant audiences at the most relevant times and reported to boost campaign ROI by at least 10%.
3)Why do you need a Data Management Platform?
If you think that, all a Data Management Platform can do is manage data, then considering these five critical points will tell you why DMP be your next move. So, there are so many more reasons why your business needs a DMP. To start with:
To improve your ad buying return:
No matter how lean budgets you have while creating ad campaigns, you always want more options to be available to reach your audience. So, you try to create campaigns and select targeted spots for ad purchases. As a result, you will get maximum response rates, higher conversions, more recognition to your brand and thus, higher ROI.
To simplify and plan your data:
You have data scattered all across your emails, social media, e-commerce platforms, and so on. Instead of keeping it all scattered, you can assemble all that data in one place. And this will provide a better understanding of your audience, outcomes and your market conditions.
With a DMP, you can add tags to emails, websites, apps, ads and make the new data into old data. You can, therefore, have more control over your data and organize it most effectively.
By doing so, you won’t miss any possibilities which could drive more revenue for you by effective Data Monetization. Also, you get better clarity of the marketing strategy that you should take ahead.
To effectively budget your marketing expenditure:
When you have a Data Management Platform you have access to several data vendors within your DMP. So, you have more knowledge about the data within your DMP. You will be able to figure out how much you spend on your marketing activities through various marketing channels.
Thus, a DMP helps you to work within the budget and also predict ideas on how much you might spend in future marketing activities.
To correctly manage multiple campaigns across devices:
Your digital marketing strategy becomes more complex when you add more campaigns and devices to your marketing process. Having a Data Management Platform can be your rescue.
A Data Management Platform gathers and circulates the necessary data you get from each campaign and tracks various messages and signals too. It delivers data by making it easy to understand and minimizes mistakes.
Having a Data Management Platform makes the process of campaigning easy and correct with minimized errors.
In identifying new potential audience segments:
With a Data Management Platform, you can look for new ways to segment your audience. As a result, it highlights different audience groups that you might not have known or not thought that they would exist.
DMP platforms do this segmentation tracking in such excellent ways that even human marketers couldn’t do for so many years. So, a Data Management Platform can identify new ways of looking at an audience to provide a picture of what they look like and how to create messages that resonate with them. This way DMP marketing can come up as an effective marketing tool for your enterprises.
4) How does a Data Management Platform work?
Your first-party data is exclusive and helpful. But it has a limited reach, so you can’t depend on it only or you’ll be missing out to some extent. You get your second-party data directly from the second party involved. Second-party data gives you some benefits, but it does not provide you with public data.
You can obtain the third-party data by buying it or affiliate agreements. Using the 1st, 2nd and 3rd party data, you can perform programmatic advertising to run campaigns or earn money.
Also, you can use a third-party data directly and perform programmatic advertising and run campaigns or earn money.
As a result, you can make your target audience more specific and focused. And this provides you with better targeting and brings in so many more excellent opportunities for running precise campaigns and maximizing your profitability.
5) What can a DMP help you achieve?
Data Management Platforms can give you several benefits in your business. With a DMP:
You can use the data that you already have and track your customer’s journey and interactions with this existing data. So you can understand better that which data assets are working for you and which are not.
With DMP marketing, you can tap into the existing useful data and make your messages more customized, appropriate and timely targeted to your audience. This way you can engage in an effective way with your audiences and optimize your marketing processes continuously.
A right DMP can turn your information into meaningful data. You can find out what your customers desire with the interactions involved within the DMP and so you can deliver relevant products and services to them.
With look-alike audiences, you can match the behaviour and journey of your best-existing customers and attract more business. DMP advertising is a great way to reach new people who are most likely to be interested in your business as they are similar to your best existing customers.
DMP is a time and budget saver…
There are many times that a big part of your advertising budget goes wasted. But a DMP advertising can reduce wastage of marketing budgets for you. You can use a DMP to evaluate your ad campaigns and ad placing and show your contents only where it is most necessary and effective.
Also, you can save time with DMPs by not bothering where your customers were present the last time you spoke to them. You can start interacting today with a fresh start, create leads and try converting them.
DMP platforms make it easy to combine the data from your offline and online sources in a single platform and get a clear single-view picture of the customer. So, this way you get regular updates of your customer’s profile and you can anticipate the future behavior too, thus bringing in more revenues.
6) Do You need a Data Management Platform?
By now, you know what a DMP is, why is it needed, what great benefits does a DMP bring, and more. So, another most crucial point that we should talk about when talking about DMPs is that whether you need it or not ?
Let’s know this here by answering a few questions. To start with:
- Are you managing online ad campaigns across different ad networks, exchanges, and publishers?
- Do you need to keep a check whether you have control over your data assets, maximize segmentation, prevent leakage and monitor partners’ usage?
- Have you classified your audience data for better campaigning and security of data?
- Do you run retargeting currently?
- Are you willing to increase your scalability, niche targeting and messaging capabilities?
- Do you wish to make better target campaigns to improve response rates, conversion, and brand recognition?
- Are you buying third-party audience data, media placements, or bid on ad exchanges regularly?
- Do you want to keep control of your advertising costs and improve your overall ROI?
If you voted YES to more than three of these seven questions, then YES, you need a DMP.
7) How to get yourself started with a Data Management Platform?
Once you are sure that you need a Data Management Platform, here’s how you need to put your initial steps up for implementing a DMP into your marketing plan. Follow these simple steps:
First, you need to connect your offline and online data and make a pipeline between all of your data sources and your Data Management Platform.
Now, based on your data, organize your users into these categories and classify them.
The interest, intent and initiation groups:
Interest: It is a group of users who are just interested in your product or service. This interest could be like reading an article or watching a video related to your product or service.
Intent: This group of user is intended to buy. They view your product page and conduct various searches.
Initiation: The initiation group is about to complete a purchase. They have added the product or service to their cart and began to fill out a checkout page.
By doing so, you get an idea of your users with a definite data classification and their behaviour patterns. Now you can move ahead with organizing this data outcome in the next step.
Take a step to organize your data for business and advertising. You can think about how you can structure your user data on the basis of products, loyalty, price, engagement level etc. This helps to make better decisions regarding sending your advertising messages to your users.
So, data Classification is an essential step to your DMP implementation. Data Management Platforms help in classifying your raw data from various touchpoints and making it ready for more revenues and data security.
Have a look at these 5 helpful DMP platforms:
1) Lotame is a great platform that goes well with marketers, advertisers, and helps to combine data and increases engagement of users.
2) Salesforce is an effective DMP platform that uses Artificial Intelligence (AI) to find new prospect customers, engages with existing customers and manages multi channel campaigns.
3) Oracle helps in building user profiles and combines first party and third party data from sources such as social, media, mail, ads etc. Also it is great for analyzing cookie-based customer data.
4) Adobe Audience Manager is a data management platform that helps to build unique audience profiles so that you can identify your most valuable audience segments and in a better way.
5) Audience Play is one great platform to monetize your audience data and provides DMP features as well. You can target your audience from anywhere and thus create great opportunities for you.
Conclusion: Are DMPs the right move for you?
The bottom line is that Data Management Platforms are essential to organize and manage your valuable data assets. With these platforms, you can know and understand your customer better and provide them with more personalized services as they help you to create a single customer view.
It enables you to deliver to the relevant and compelling marketing messages via any marketing touchpoint – including display, search, email, TV, radio, and mobile.
DMP Marketing and DMP advertising help you to achieve world-class audience targeting and campaigning. You can thus derive successful and effective marketing results and optimized marketing by having a DMP. So, go ahead and make DMPs your next move.
Have you started boosting your campaigns using a DMP yet?
Tell me in the comments.