What is a DMP (Data Management Platform) and why use it? – WAU
The DMP or Data Management Platform is a data management platform that allows you to interpret, collect and organize information from different sources to optimize digital advertising. In this article you will learn more about this tool, its operation and benefits!
Each day, technology takes a step forward and collaborates with several areas. Two of the big beneficiaries are Digital Marketing and advertising.
With this great ally, it is possible to optimize advertising campaigns, allowing to reach exactly the audience that interests us without much effort. To better understand how it can help increase advertising power, we’ll talk about DMP or Data Management Platform.
In this post, you will discover what they are, how they work, what are their sources and all the benefits they can bring and the main DMPs of today. Check out what will be covered:
What is DMP or Data Management Platform?
Data Management Platform or DMP is a data management tool that interprets, collects and organizes digital information from different channels.
In this way, it is possible to obtain data on the public of our interest, generating a broader audience, to which we can offer our products or services.
DMP allows optimization of digital ad campaigns, since the more data we have from our potential customers, the greater the likelihood of conversion.
What data sources does a DMP manage?
When defining the Data Management Platform, we said that the tool obtains data from different channels – and that is exactly what makes it so useful – because in addition to the data obtained in these media, it is possible to collect information from other sources.
DMP can collect data from three different sources. Follow!
1st party data
It is all the data obtained in the channels themselves. Because they are data acquired from the customers themselves, they are generally more valuable.
These data include the information that the buyer spontaneously provides to us, as well as data that reflects their behavior in the online space.
Own channels are:
2nd party data
They are the same type of data obtained on the 1st party data, but not collected on your channels, but in others.
In other words, you get the data when you contact a company in the same segment as yours or a related segment that complements your business.
For example, if you sell tennis balls, you can use data from a company that manufactures rackets for that sport.
3rd party data
These are generally purchased data from external sources. It is usually the most expensive type of information, but despite that, it is not as valuable. However, they are essential when looking to expand the audience.
Usually the data obtained are:
- marital status;
- number of children;
- Profissional area;
- income level;
- geographic location.
Once the data is obtained, regardless of its origin, it is integrated and worked on the same platform.
How does a DMP work?
DMP basically performs three steps that we will see below.
1. Collect the data
As you have already seen, the data is collected in different channels and can be obtained through cookies or forms that the user himself fills.
2. Process information
After the platform collects the data, it’s time to process it. The tool will list all the information to identify the various audience segments.
3. Use the data for programmatic advertising
Advertising or programmatic purchase, in short, is the automated purchase of spaces for online advertising. The data obtained by DMP is used to segment and create audiences, depending on the user’s behavior and interests.
With these data, it is possible to identify who to impact, in what way and through which channels.
What are the benefits of using a DMP?
A DMP can help a lot, to determine audiences with a focus on conversion, however, its advantages do not end there. In the following, we will show you 5 benefits that you can obtain using a DMP.
Enables targeted advertising
Advertising targeted at specific segments is much more effective and a DMP allows users to micro-segment. This way, you can customize your advertising campaigns to the fullest and, consequently, optimize conversions.
Optimizes the user experience
By customizing user interaction with advertising, your experience improves considerably, as only ads that interest you will be displayed.
Improves ROI for campaigns
When you get a higher conversion rate, your ROI automatically decreases, allowing you to optimize your budget.
Allows you to implement efficient strategies
The value data obtained allows the creation of new strategies in different channels. Independent strategies can be created for each audience segment.
Allows you to manage multiple online campaigns
It is possible to manage more than one digital advertising campaign through different advertising networks.
What are the main DMP tools?
Next, we’ll look at the 4 main DMP tools today.
This powerful Big Data platform is based on the cloud and has a complete database, as it has millions of anonymous customer profiles.
Oracle BlueKai is a trusted platform based on authorized sources.
Audience Studio is the Salesforce DMP. Uses Artificial Intelligence to analyze millions of data quickly. This DMP allows you to generate new audiences with great precision.
Adobe Audience Manager
Adobe’s data management platform allows data to be obtained quickly, activating segments in real time. Your customers can create unique audience profiles, optimizing the results.
Mediamath’s DMP works with data in real time in an omnichannel environment. It has data mining tools capable of processing large volumes of information.
This data management platform was recognized as the best DMP at the Digiday Awards 2019.
The Data Management Platform came about to give advertising another direction, integrating it in a personalized way to the environment that is inserted to reach the audience most likely to convert, thereby improving the user experience and business results.
Like DMP, marketing automation also allows us to customize our campaigns, something that would be impossible without the help of technology.
Find out now everything you need to know about the importance of automation by downloading our free ebook on the topic!