You’ve heard the likes of the Drum, Adexchanger, savvy digital agencies and CMOs talking about Data Management Platforms (DMPs). Here, we explain what this technology is, what a DMP for marketing does, the basics of how it works and how it varies from other marketing technologies.
A Data Management Platform is a piece of marketing technology, which is fed by scattered people data from different (siloed) databases, platforms and channels. Rather than just storing data, the goal of the platform is to create, sort and refine profiles into a single customer view – and create a series of actions from it. In an ideal world, a DMP can even do this in real-time.
The Relay42 Intelligent Orchestration Platform (IOP) is a next-generation DMP, which means our platform can do everything a DMP does, and more.
A DMP collects and organizes your data to optimize your marketing efforts. In the best-case scenario, this means that your organization’s prospects and customers are served the right product or message, exactly when they want or need it. It means you can acquire new customers, and keep the existing ones for longer.
That means consistent messages – delivered to each person, in real-time, and at scale – resulting in meaningful customer experience. Behind the screen? A comprehensive single customer profile, which marketers can use to push out actions based on behavior and interactions.
In short, DSPs sell ad inventory to media buyers (brands), and DMPs connect DSPs to the rest of the advertising and marketing ecosystem. A DMP isn’t a part of buying and selling ads or their impressions – but it will help a DSP to do its job better by broadening its context for bidding decisions, optimizing them by connecting a brand’s first party data (CRM or data warehouse) with touchpoints or channels such as Facebook, Website and beyond.
Of course, it’s more effective to optimize ad spend for an individual customer, considering every channel they interact with, than it is to do so within one environment and across large audiences.
DMPs can be used by advertisers (brands) or publishers. For brands, which we’re primarily talking about in this article, the technology and what it achieves can vary based on the size of your organization, the type of data it uses, how much data is stored or used and where the data is kept.
Those who use or have a direct interest in the DMP are a varied bunch: an organization adopting DMP technology properly requires various levels of collaboration between different departments – from marketers and channel specialists to IT, and buy-in from different organizational levels – from operational, to strategy managers and C-level board members.
Why? Think about how the teams within your organization are divided, and consequently, how fragmented the data is across departments. To bring the data together and make best use of it, organizations need to follow suit; cross-pollinating people as well as data.