A Data Management Platform (or DMP) is a basic user data management platform for Internet advertising transactions. Due to advances that made DMP technology possible, advertisers can target users in their advertising campaigns better. Brands can also improve their customer user experience. DMP platforms are able to group, manage and integrate large amounts of data for later use.
The data can be extracted through both internal and external sources. Here are some benefits of it:
- 1st Party data: Brands extract a series of data in various ways. Existing information on the website, mailing, interaction in R.R.S.S., mobile information and accessing data that has been provided by the user themselves.
- External data (3rd Party data): Consists of the basic information of the user. This data can include their age, sex, profession, location and tastes.
DMPs that utilize all of this data can be extremely effective for digital advertising.
How do DMPs work?
In order to treat and process data effectively, the DMP carries out a series of automated actions with digital transformation services. The time it takes to handle these queries can be measured in thousandths of a second.
The first step is to collect data from relevant web pages thatthe customer has interacted with. This is done through cookies, which allow the storage of information respective to the user. These pages have used machine learning to get a better understanding of the behavior of the visitor by observing their interactions with the website.
The second step consists of processing the data to select the target audience. It is essential to establish a strong relationship between the data obtained and the audience.The last step is to transfer this data to the corresponding agents and provide necessary instructions to process their inquiry.
Why is it important for digital marketing?
DMP platforms are important in digital advertising for a number of reasons.
1. Data organization. The DMP separates this data and organizes it in such a way that the individuals overseeing the purchasing inquiries can get a better overview of the process.
2. Interpretation of data. It allows both advertisers and media to get a better understanding of the data andadopt their strategies accordingly.
3. Market segmentation. The data offers the advertising managers the opportunity to adapt their campaigns to a more specific demographic to improve the ROI.
4. Data integration. DMP platforms are capable of combining data extracted from the advertiser’s own sources with external data sources. This gives them more insights into the target demographic, provided you have accounted for data integrity and data redundancy.
5. Audience Retargeting. In collaboration with DMP platforms, digital marketers can know the efficiency and effectiveness of their campaigns in order to exploit those they consider.
Advantages of DMP platforms with Digital Advertising
The use of DMP platforms provides a number of advantages both to advertisers and to the media offered by the publishers.They allow a more efficient management of several digital advertising campaigns carried out through different media. Some of the biggest benefits include:
- Ensuring effective control of user data
- Facilitating the segmentation of these data
- Increasing ROI
- Providing more control of advertising expenditures
- Increasing the effectiveness of display advertising
You should invest in a DMP if you are concerned about getting the most of your advertising budget.
Image Credits: Advertising Campaigns from boonchoke /Shutterstock