What is Data Management Platform (DMP)? How Does DMP Work?
Digital advertising is one of the fastest growing industry by integrating technologies like Data Management Platform (DSP), SSP, DSP, Ad Exchanges, RTB, etc. In this article we are going to discuss about Data Management Platform (DMP) on how the user data will be collected on a daily basis from the sell the audience data to the advertisers to target the desired audience in their advertising campaigns.
What is Data Management Platform (DMP)?
The Data Management Platform (DMP) is a unifying platform of collecting, organizing, and activating the first, second, and third party audience data from any source including online, offline, mobile and other platforms. It is a backbone of retargeting advertising where advertisers to can remarket the desired audience to promote their products and services.
Here’s video created by Lotame – one of the leading DMPs in the market explaining what is DMP in this short video.
DMP uses the big data and artificial intelligence to process the and analyze the large data sets of users from various sources to create it in a readable way.
A DMP will help the advertisers to organize the collected user data, provide the insight on audience and markets, and help to reduce the advertising cost by suggesting the interested user to target in the advertising campaigns.
What Does Data Management Platform Do?
DMP collects and organizes the data from various sources of first, second, and third party data sources. It segregates the huge data received and convert it in to readable formats to make it available for other platforms like DSP, SSP, and Ad Exchanges to utilize for various ad campaign purpose.
A DMP is also called as “pipes” of Ad Tech where it is connecting multiple advertising platforms by sharing the required audience data to the advertisers and publishers to reach the desired audience.
How Does a Data Management Platform Work?
Data Management Platform can collect the unstructured audience data from various sources including desktop, mobile web, mobile app, web analytics, CRM, point of sale (POS), social media platform, online videos, OTT platform, offline advertising and even from TVs as well.
DMP will collect the data from the surface level and going beyond of like URLs redirected and keywords targeted information. This information is crucial for at all the level of marketing activities to reach the desired audience to promote the products and services.
This first party data is user data that collected from various sources to analyze the consumer behavior such as clicks, downloads, video uploads, video watch time, category interest, and demographic information. The DMP can also capture socio-economic data, influencer data, purchase action data along with core demographic data.
As an example, advertiser can use the data collected from DMP to target the specific online ad to moms’ who are with the age group of 25-35 years from the desired location. This is just a simple application of DMP usage, however, it is providing the various options of targeting the audience that advertisers are looking for their campaigns.
The DMP can collect the audience data from the following online and offline sources and segregate it into various sources for further usage.
- Mobile Web
- Mobile Apps
- Behavioral and demographic data
- CRM data
- Point-of-Sale (POS) data
- Social media networks
- Online video platforms
- TV data
Top 10 Data Management Platforms available in Market
There are many Data Management Platforms available in the market by providing the various data to fulfill the advertiser needs. However, the advertisers need to choose the DMPs according to the audience data that they are looking for instead of looking at the brand.
- Oracle CX Marketing (formerly Oracle Marketing Cloud)
- TerminalOne OS
- The Trade Desk
- Salesforce Audience Studio (formerly Salesforce DMP)
- Adobe Audience Manager
- IgnitionOne Digital Marketing Suite
- Neustar IDMP
Conclusion: The DMPs are playing vital role in online advertising by providing the most crucial user data to target audience and reduce the advertising cost. Online advertising is publishing the relevant ads using the audience data and helping the advertisers to get higher conversions in short span of time.
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