General Definition of DMP (Data Management Platform):
A centralized system to collect proprietary data, integrate with third-party data and applying that data to an advertising strategy. An advanced data management platform allows users to create custom segments, predict segment volumes, synchronize the segments with other sources, to overlay advanced analytics and is often integrated into DSP platforms or a part thereof.
Simple Definition of DMP (Data Management Platform):
A platform where data’s are saved and managed which later on is used to predict purchase intent, make comparisons and majorly on advertising strategy. The platform allows a company to host a single point of all behavioral, business and advertising data in order to analyze issues based on business-as personalization of offers and customer satisfaction.
Technical Definition of DMP (Data Management Platform):
DMP (Data-Management Platform) data management platform, is the dispersion of the first and third-party data integration into a unified technology platform where then data standardization and segmentation is done so that users can put these results to the current subdivision.
Scenarios with or without DMP (Data Management Platform):
- Before DMP or when data’s were not saved:
- You can probably put ads served to a group of people
- May cause delays, but still costing
- Unable to track people willing to buy
- After- new data collection techniques were later applied:
- Through the record, you know the user’s exact preferences
- Precision lock single user investment and advertising
- You can track user purchase intention to continue lure them
DMP (Data Management Platform) Working:
DMP consist of three phases:
- Aggregate phase – In this phase data is collected from multiple sources like first party i.e. website, third party, offline data, transaction data, etc. To collect these data placing a tag on the site is the first step
- Integrate and Manage phase – After the data collection its integration and management is done. Basically this phase is divided into four stages
- Storage/warehousing: In this stage only the storage process is done
- Normalization: Data identification between own and third party is done, all the data refining process is done in this stage (all the data collected are not necessarily important and useful)
- Selection/Segmentation: The division or segmentation of data is done as per specific rule or common parameter in this stage
- Analysis and Decision: Complete analysis of the data is done thereafter the evaluation of data is done in this stage
- Deploy phase – In this phase deployment can be done using the data. Reaching to this phase means data is now transferred to information which can be used to form advertising strategy, or business strategy or in any decision making.
DMP’s core elements include:
- Data integration and standardization capability: The unified approach, the parties to absorb data integration.
- Data management capabilities breakdown: To create unique and meaningful customer segments, effective marketing campaigns.
- Functioning data labels: Data labels provide the flexibility, ease of use of marketing activities.
- Self-service user interface: Direct access to web-based data tools integrated web interface or other programs, functions, and several forms of reporting and analysis.
- Relevant channels connected environments: Integration with relevant sources, including websites end, display advertising, e-mail and search and video, allowing marketers to find, locate and deliver highly relevant sub-groups of marketing information.
What are the specific duties of DMP (Data Management Platform)?
DMP is a series of one-stop multi-media advertising platform, and its responsibilities include:
- RECORD DATA:
- Traffic Sources
- FB Id
- Operation Record
- SAVE DATA:
- All the data collected are segmented and saved for analysis
- ANALYZE DATA:
- Analysis, sorting out the visual information chart with statistics
- IDENTIFY TARGET:
- Mining goal
- Finishing population
- Management portfolio
- Provides objective
- Provide a target for DSP
After obtaining screening target analysis, it will continue the following processes:
Customized ad delivery – Due to advances in technology, and now you can lock a single user to vote customized ads, advertising better than natural.
CRM Customer Relationship Management – This is actually a concept of customer management, order conversion cycle to master and user habits, and then formulate advertising strategies.
The end result is: To enhance the accuracy of advertising!
Types of DMP (Data Management Platform):
- Open DMP – Open DMP consists of data related to website visitors, demographic data, interests, audience data, advertising related access data, etc. Advertisers (operating companies or agencies are given access to this DMP)
- Private DMP – In addition to the area of open DMP, aggregates the proprietary of marketing data such as purchase information, user profiles, various promotion results, etc.
DMP (Data Management Platform) Issues:
- Lot of data maintenance
- Security and privacy concerns
- Considerable amount of cost and time spent during implementation
DMP (Data Management Platform) Advantages:
DMP has main 6 major advantages over manual data management, let’s know them all –
- Data Integration is possible
- Scalability (Supports the processing of large amounts of information)
- Speed & Accuracy (It can be processed at high speed with the use of cloud)
- Flexibility (It can be designed to suit a particular purpose by the platform)
- Analysis & Discovery is easy to do
- Robustness (Provides secure platform)
DMP for Marketer vs DMP for Publisher:
When classified by the difference of the user of the DMP, it can be divided into two:
- DMP for Marketer – It is a case of using the DMP for the purpose of marketing their products and services
- DMP for Publisher – Here it is used with the purpose of raising advertising value by showing ads to relevant users or database of his site. E.g. to improve the efficiency of advertising by changing the message of the advertisement from the user’s profile i.e. different for male and female.