Hierarchy of Data Management Platform and Types of DMP Segments

Data Management Platform is a crucial part of programmatic advertising to reach the desired audience through Ad Exchanges. The DMP will capture a huge data from various sources and it is one of the tedious jobs to segregate the data collected and create a relevant segment to utilize in various of part of advertising. We have learned What is Data Management Platform (DMP) and how does it work in the online advertising in this article. We are going to discuss what happens once the data is collected within DMP to understand the hierarchy of data.

Here’s an article to understand what is Data Management Platform and how it will work within online advertising domain by reaching out the desired audience.

Hierarchy of Data Management Platform

The DMP will collect the first party data from various sources and will organize into various segments called hierarchy and can be changed based on the end users’ requirement. The advertisers will decide the hierarchy of the segments according to their ad campaign targeting and the website they are going to target to utilize the segments effectively.

The large publishers may decide the type of gathering the audience data and categorize into different buckets from their own websites. Similarly, agencies will have separate account from each website to track the user data. The collected data will be categorized according to the requirement in each level.

The collected data will be categorized in different segments to understand the user behavior. It will also help creating an effective RFP, improve the campaign performance by understanding the user behavior data collected from the websites.

There are 4 steps to understand the DMP data:

Organization: The DMP will categorize the gathered first data from the websites in multiple categories and taxonomies according to the platforms they are using. The DMP will analyze the data received from the websites, define the segments based on the requirements, and deploy the categorized data into DMP platforms.

Segmenting and Audience Building: Once the collected data is organized into segments, advertisers can use the information to build audience for a specific ad campaign. For example, the advertiser wanted to target a specific ad campaign to females with the age group of 18-34 and another campaign targeted to men who are frequently buying shoes online. Regardless of who the advertisers and publishers wanted to reach, they use the relevant audience segments run the ad campaigns efficiently with right audience targeted at the right time.

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Insights and Audience Profile Reports: The data insight will be available once the data has been organized and classified in the DMP. The advertisers or publishers can take a chunk of data and analyze it to differentiate the user patterns, trends and intent of the user.

Audience Profile Reports provides and in-depth information of each user characteristics and interests that has been built in the DMP. This information can also use to retarget the users for future campaigns based on their interests.

Activation: The final step is to activate the data by targeting to the ad campaigns. The activation step relies with the DMP on integrating with APIs with other platforms. The APIs will help the advertisers and publishers to import into the DSP, SSP and other platforms where they are building the ad campaigns. The DMPs will be used by the advertisers through DSPs to target their desired audience based on the interests. Also, DMPs will be connected to content management platforms (CMS) to create the content based on the specific audience group to increase the traffic.

Types of DMP Audience available in the market:

As you all are aware that DMP provides the audience demographic and targets to explore the relevant audience for the ad campaigns, but it is not limited to these data sets. Here are a few major data sets that advertisers will frequently use to build the segments.

  • Age
  • Gender
  • Location or region
  • Interests
  • Browsing history
  • Household income
  • Family size
  • Opinions — Ex: all customers who like/do not like
  • Social networks — Ex: Facebook vs Twitter

The advertisers can build these segments using their first party data using DMP, however, the DMP will also enable the advertisers to use the second and third party data to build the effective segments for their ad campaigns.

Conclusion: The DMP provides a platform for both the advertisers and publishers to enhance their ad campaigns by targeting the relevant audience. However, this is one of the paid service that advertiser or publisher needs to enroll to utilize the platform. Considering the platform usage cost, DMPs are suitable for medium and top advertisers and publishers to connect with DSP, SSP, Ad Exchanges and ad servers.

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