John Wanamaker (July 11, 1838 – December 12, 1922) a proponent of advertising and a pioneer in marketing. John Once realized that half of the money that is spend on advertising is wasted and the problem is we don’t know which half? Frankly speaking this is a data problem. Our ad is not reaching the right audience. We don’t know who our potential customer is and who is not. So, if we have adequate data regarding our potential customer and customer’s behavior we could have reach more potential customer with less amount of money being spend.
This problem brings us to Data Management Platform (DMP).In our digital advertising landscape, the main problem we face is that we have a lot of jargon, which creates a lot of problem for the beginner in this industry. So, let’s bring this DMP down.
What is Data Management Platform (DMP)?
As digital media grows more complex and more user data are created and collected on a daily basis thus they need to be stored somewhere. Not just that, they need to be organized, sorted, translated and shared with the appropriate parties. You can’t just take data, throw it into an empty box and hope something comes from it.
A DMP is the backbone of data-driven marketing and serves as a unifying platform to collect and organize data from any source, including online, offline or mobile. Essentially, it is the data warehouse where the data is not just collected, but facilitated.
This problem brings us to Data Management Platform (DMP).In our digital advertising landscape, the main problem we face is that we have a lot of jargon, which creates a lot of problem for the beginner in this industry. So, let’s bring this DMP down.
What is Data Management Platform (DMP)?
As digital media grows more complex and more user data are created and collected on a daily basis thus they need to be stored somewhere. Not just that, they need to be organized, sorted, translated and shared with the appropriate parties. You can’t just take data, throw it into an empty box and hope something comes from it.
A DMP is the backbone of data-driven marketing and serves as a unifying platform to collect and organize data from any source, including online, offline or mobile. Essentially, it is the data warehouse where the data is not just collected, but facilitated.
Let’s elaborate a bit on each of these three steps and hit pause in the middle for a beauty shot and discuss the main functions of DMP:
1. IMPORT DATA: This just means the DMP is in the business of taking structured information from a number of different systems and organizing it at the customer level (if it’s about your customers or prospects), or at the cookie level (if the person is unknown). Typically, you would upload just important information about customers, such as their customer ID or email address (to identify them), what they have bought or looked at, their loyalty status – anything that could influence the message you show to them. Also, you would import demographic and other characteristics to help you do the stuff you do in step.
2. FIND SEGMENTS: These are known as “audiences” in the DMP world, not segments or clusters, but the idea is the same. You can define your own audiences (e.g., males in Dhaka over 50 who use an iPad, or whatever), or ask the DMP to help you find them.
3. Pause: The Beauty Shot: So far, it’s hard to get excited about these things, but real magic happens at this point. The true vision quest of the DMP is not to manage your own customer data (which is just fine in a CRM system, isn’t it?), but to provide a way for you to use this data to find new customers online. It does this by giving you access to the sparkling world of data vendors, by synching up cookies from different places, and by doing some fancy math to help you select exactly the right group of anonymous cookies to buy ads against. Not surprisingly, these fancy groups are often based on the customer data you imported in step (1), and the audiences you discovered in step.
4. SEND INSTRUCTIONS: Instructions are basically a combination of (a) who to target, (b) with what message, and sometimes (c) where, i.e., in what channel or on what device.
5. ESTIMATE THE PRICE AND REACH: Each particular data vendor could get you, so you can manage your budget (“reach” is what media types call “number of people”)
6. GENERATE REPORTS that tell you how wonderfully (or not) your new DMP is working.
BTW, there is another class of marketing software that plugs in precisely here, right after step (4). This is called the Demand-Side Platform, or the DSP. In fact, DMPs and DSPs are neurotically codependent, and many of the best-known DSPs (such as Turn) also have a DMP. The DMP and DSP are separate organisms only in the technical sense.
Alright, so we have a drones’-eye view of the DMP. In the meantime, we can take it down one notch.
In a very practical sense, the DMP is the heart of the digital marketing hub.
And like a human heart, it keeps alive the hope for a prosperous Digital Ad operation.
Some Examples of DMP:
Some of the major DMP technology sellers are Adobe AudienceManager (Adobe acquired DMP Demdex in 2011), Oracle DMP (Oracle acquired BlueKai in 2014), eXelate (now owned by Nielsen), Krux and Lotame. Additionally, some DSPs now have their own DMP technology. Turn is an example of a DSP that also offers clients DMP technology.
1. IMPORT DATA: This just means the DMP is in the business of taking structured information from a number of different systems and organizing it at the customer level (if it’s about your customers or prospects), or at the cookie level (if the person is unknown). Typically, you would upload just important information about customers, such as their customer ID or email address (to identify them), what they have bought or looked at, their loyalty status – anything that could influence the message you show to them. Also, you would import demographic and other characteristics to help you do the stuff you do in step.
2. FIND SEGMENTS: These are known as “audiences” in the DMP world, not segments or clusters, but the idea is the same. You can define your own audiences (e.g., males in Dhaka over 50 who use an iPad, or whatever), or ask the DMP to help you find them.
3. Pause: The Beauty Shot: So far, it’s hard to get excited about these things, but real magic happens at this point. The true vision quest of the DMP is not to manage your own customer data (which is just fine in a CRM system, isn’t it?), but to provide a way for you to use this data to find new customers online. It does this by giving you access to the sparkling world of data vendors, by synching up cookies from different places, and by doing some fancy math to help you select exactly the right group of anonymous cookies to buy ads against. Not surprisingly, these fancy groups are often based on the customer data you imported in step (1), and the audiences you discovered in step.
4. SEND INSTRUCTIONS: Instructions are basically a combination of (a) who to target, (b) with what message, and sometimes (c) where, i.e., in what channel or on what device.
5. ESTIMATE THE PRICE AND REACH: Each particular data vendor could get you, so you can manage your budget (“reach” is what media types call “number of people”)
6. GENERATE REPORTS that tell you how wonderfully (or not) your new DMP is working.
BTW, there is another class of marketing software that plugs in precisely here, right after step (4). This is called the Demand-Side Platform, or the DSP. In fact, DMPs and DSPs are neurotically codependent, and many of the best-known DSPs (such as Turn) also have a DMP. The DMP and DSP are separate organisms only in the technical sense.
Alright, so we have a drones’-eye view of the DMP. In the meantime, we can take it down one notch.
In a very practical sense, the DMP is the heart of the digital marketing hub.
And like a human heart, it keeps alive the hope for a prosperous Digital Ad operation.
Some Examples of DMP:
Some of the major DMP technology sellers are Adobe AudienceManager (Adobe acquired DMP Demdex in 2011), Oracle DMP (Oracle acquired BlueKai in 2014), eXelate (now owned by Nielsen), Krux and Lotame. Additionally, some DSPs now have their own DMP technology. Turn is an example of a DSP that also offers clients DMP technology.
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