Although a marketing data management platform has been deployed by over half of marketing organizations, confusion maintains about what these solutions do and what they don’t.
Most of consumers have looked through a website to see a product, and then noticed ads for that product on every digital channel they brought out the next few days. These ads help brands keep top of mind and hopefully drive people back to make a purchase. One technology brands use to drive those follow-up ads and make sure they attract to a customer is a marketing data management platform (DMP). DMPs includes pulling data from in-house systems and third parties, and employing that data to create detailed customer profiles that drive targeted advertising and personalization initiatives. However, DMPs don’t independently control customer data and execute ad campaigns. They are “nexus” technologies that stay between data sources and content distribution and interact with both. This location “in the middle” leads to confusion for marketers. According to Eric Schmitt, Senior Director Analyst, Garner “Marketers turn to DMPs mainly to get a multidimensional view of their customers and prospects. They also establish rules to trigger ads and messages and make measurement more accurate.”
It is given that four out of five marketing organizations include a DMP or are suppling one, according to Gartner’s 2018 Marketing Technology Survey, it’s crucial to understand what they do, how they support and what they don’t do.
Here DMP appears to the rescue. DMP (Data Management Platform) becomes one of the main stacks of a software platform that houses, organizes, saves and analyzes data from any source. Hence, it acts as a tool for determining the target audience. Simply put, DMP isnot only a huge database that holds processed data about your customers, but also a set of services that run with this database. The processed data don’t just release of thin air. They are kept by analyzing raw data and storing it in a database. For instance, those might be structured events and users. Although data will be saved in different, related database tables.
Raw data comes in constantly. It can be data about the website visits and user’s actions, for instance, downloading the promotional material and subscribing for a mailing list, filling out the registration form or purchasing a product.
Data is not limited to web pages only. Just as simply, you can get information from mobile devices, such as smartphones or smartwatches, each time a user accesses with any applications. That data might also extract from the CRM systems or social networks. Even from your TV set, which videos were watched, in whole or in part, your likes and comments. This raw data vary from the prepared ones. You can get any input information and in any quantity.
What do DMPs do?
DMPs collect data, organize it and save it with other marketing technology systems. DMPs collect data from a host of sources. For internal data, DMPs can pull from CRM software or from company-owned channels such as websites or email. For external data, DMPs might access to third-party data brokers or corporate partners.
When they’ve collected the data, DMPs arrange it to create a profile of each personal customer (the data in DMPs is frequently anonymized). Marketers explains rules for when that user visits a website or calls in to a call center. Marketers also access “look-alike” profiles that share attributes, like all men in Florida over 50 who use an iPad into an audience so that all members receive the similar marketing messages.
Then, DMPs share data on audiences with digital ad platforms and in-house marketing channels so those platforms know who to serve which ads or content. DMPs in turn gather information on ad performance to analyze and enhance future ad purchases.
How do DMPs help marketing?
By collecting, organizing and sharing data, DMPs collects marketers to build targeted ad campaigns, widen their reach beyond known customers to look-alike prospects and drive more personalized interactions across channels. The advantages accrue in the form of more customer purchases and more successful ad programs. To exemplify how this could operate in practice, consider Luxe Trux, a fictitious auto business that wants to engage men over 40 who live in urban places and like driving performance ATVs and trucks. When loyal Luxe Trux customer Terry comes in the company’s website, the DMP understands him from an ID placed in his browser, accesses his info to the company’s CRM system and presents a display ad for a new-model white SUV.
Then, when Terry visits ESPN to go over the game scores, the ad exchange operating on that site accesses his profile to the information shared by the DMP and presents another ad for the same SUV. A day later, when Terry introduces a mobile app, he finds a new ad with a rebate provide. He goes into the dealer to take a test drive , and maybe to purchase. At the same once, all across the web, truck lovers in their 40s like Terry ,his “look-alikes”, are viewing ads for white SUVs. In this mock scenario, the brand changes Terry from an exploratory visit to a test drive and possibly a sale. It also delivers a new prospect to its website, all with the support of a DMP.
What don’t DMPs do?
DMPs present some of the similar features as other marketing technologies, such as data analytics platforms, demand-side platforms or customer data platforms. Nevertheless, there are significant differences.
DMPs don’t show the familiar breadth and depth of analysis as stand-alone data analytics platforms since the technology only collects certain categories of data and only analyzes ad performance from digital channels. DMPs can’t work ad campaigns on their own, either. They link with demand-side, supply-side or media platforms, which cater the ads. In reality, DMPs are often embedded in solutions such as marketing cloud platforms, adtech platforms or media ecosystems as one part of these larger platforms. Provided their strengths and limitations, DMPs can be an important tool to allow more targeted and personalized ad campaigns. Lots of marketers already have them in their technology mix- though some may not know it.