What is a Data Management Platform (DMP) and why should we care?
A DMP is a platform that helps to concentrate and manage, any kind of information which is obtained by combining different types of sources at once. Nowadays and with the progress made by digital advertising in the last years, the advertisers and agencies are the ones that use them frequently, in order to create based on this data, target audiences and then address them.
Usually we tend to confuse it with what we call DSP (Digital Signal Processor) that although originally serves to buy the online publicity space, based on the previous data obtained by a DMP; also it is beginning to offer the collection information service.
Some companies argue that is better integrate all the work on one platform instead of two; however there are other who prefer to continue managing and analyzing in depth the information from a DMP to build the audience, and then cross it with a DSP.
The first one, will give a meaning and a real value to the ‘Big Data’, using the data obtained and will make them profitable to the advertiser (which ends up being the best-selling, billing, customer contact, etc). Consequently the second one, will be a complement that allows centralized purchasing format display prints from various sources such as Ad Exchanges or SSPs.
How does a DMP feed?
In some cases data are provided by the client and are concentrated on the advertiser’s tool Customer Relationship Manager (CMR). It also can be obtained from the advertiser’s web page, with the clicks and number of visits; online marketing campaigns, social media and display actions. And of course, through the cookies on mobile devices.
In other cases, the information can be acquired from external sources such as; age, geographical location, profession, interests, gender, etc.
So, why do we need a centralized data management platform?
When we talk about a Data Management Platform, we are not only meaning a storage tool. Reality shows that nowadays, it has gained much more importance concerning the cooperation between marketing and advertising technology. Sellers take the advantage to offer a better customer experience, increasing the efficiency on their business.
An example is the Sniper DMP, the Harrenmedia’s own platform that has access to more than 950 million unique users globally, allowing to combine their data with third party data and generating a vast universe of audiences. By crossing sources, provides metrics and helps to understand the public, giving in response what is the precise target for the next campaign.
As we mentioned previously, with all the data obtained from different sources, the DMP allows to create demographic segments as well as analyze the users behaviours and consequently, delivers them to the advertising platform to then focalize the publicity through a DSP. This ends up with what once were suppositions or conjectures and brings actual facts, from actual clients, on their real environment, while they interact with on-line goods and services.
The benefits multiply because the DMP is not only able to accumulate a large amount of heterogeneous data but also; understand and analyze them to give them a specific meaning. Equally they can be molded and worked out to have a better use and performance.
With all this information processing, companies will have the possibility to target their online advertising campaigns in a better way; with a better expenses control, transmitting a unique and different experience to the user selected. Coming back to where we started, digital marketing and online publicity cross with each other and also make a complement to generate new spaces and audiences.