Get an overview of DMPs, what they do, and how they help the organization in this video.
- You're probably realizing that there are lots of different data sources here, and a lot of different activation channels to keep track of. You've got CRM data, Ad Server and Platform data, website and App analytics data, and that's just the start of it. And, you want to use all that data to help guide your digital advertising all over the different channels that we've looked at. So how can you effectively manage all of these? Well, that's exactly what a Data management platform, or a DMP, can help you do. A DMP is basically a centralized system designed to collect, manage, and integrate large data sets from all kinds of disparate sources.
Now this can include online and offline data and it can leverage both first party, or owned, and third party, or paid, data sets. From an advertiser's perspective, the biggest thing that a DMP does for you, is unify data from different sources that are all related to a single person. Because you're having so many different interactions with the same person over all kinds of different mediums, and through all kinds of different technology, you end up with a single visitor or customer or prospect having multiple cookies and identifiers associated with them.
Now this leads to there being lots of different, separate records across an advertiser's different marketing platforms. The challenge here is that this situation creates a really fragmented view of the individual. For example, a customer retention team might leverage CRM data as a primary tool, and they would deliver emails to a current customer about renewing an existing subscription. At the same time, a media buying team might be responsible for a display advertising campaign that's delivered to that same individual, only they might consider them a first time prospect because of the website visitation patterns that they have access to.
Because this data isn't joined, they end up delivering a promotion for a discounted plan that the customer's already in, or maybe not even eligible for. Now this lack of data integration can, at the very least, generate missed opportunities for seamless marketing across all these platforms. And at its worst, it can create a lot of frustration for a customer or a prospect. DMPs can help here, by centralizing and bringing together the data from these different platforms so that you see things at a more individual level, and not at a cookie level.
With all of this data unified, and in one place, you can begin to understand and build different kinds of audiences for different targeting. And the real beauty here is being able to activate these audiences across all kinds of communication touch points. There are once again lots of options here. Ranging from private companies like Krux, Lotame, Tealium's audience stream, Turn, and others, to Oracle's BlueKai and Datalogix. Acxiom's LiveRamp, Rocket Fuel's x+1 and many, many more. DMPs tend to require a certain size of organization to make sense, but if you've got the budget, the capacity to deploy, and the data, a DMP will allow you to do some really interesting things.
First, you can generate all kinds of insights about your audiences that would otherwise require more complicated analysis across multiple data sets. For example, you could start to analyze behaviors and attributes that can predict future value with inputs from all kinds of data streams. Maybe you find that people who visited a certain page on your website click on a certain percentage of your emails that you send them, they've purchased a big ticket item in the last 12 months, and they happen to have a great credit score with two or more children at home, they might be statistically your best customers.
Here, you've used web analytics data, email, or marketing automation data, CRM and transactional data, and even third party demographic data that you may have purchased. Building audiences around these attributes can help you target your existing lists better and it can also be the jumping off point for acquiring look alike audiences that can expand your reach. Of course, you can also segment into more functional audiences. For example, you could create groups of people who are coming up on the end of a warranty period. People who have an older version of your product or service that might need an upgrade, or groups that are in a certain stage of the purchase cycle, and anything else that you can measure or imagine.
Now once you've built your audiences, you can start to activate these ideas and insights to deploy a customized, relevant message based on those individual attributes across lots of different platforms. DMPs can integrate with email marketing and marketing automation platforms, display advertising and demand side platforms, social media platforms, website content management systems for personalization, direct mail channels and many, many more. Last, it's important to know that data has become a very valuable currency, and lots and lots of money is spent every second of every day by advertisers who will pay for this data.
Now if you're creating audiences that you don't mind sharing in an anonymous or aggregated format, and if your privacy policies allow it, many of these DMPs can help facilitate selling your audience data, so that others can use it to target their own prospects and customers. For example, if you're a blog dedicated to basket weaving and you're collecting lots of relevant data about cookies and people who are interested in basket weaving, you could make some or all of those audiences available to the open markets, where basket weaving equipment vendors, for example, might pay for the opportunity to target your audiences.
Of course, this is by no means a requirement. And, many organizations never set foot into this realm, but it's interesting to see just how connected all of this technology is. DMPs can be a key component of the digital marketing technology stack, organizing, matching up, and managing your data against the customized criteria that's most relevant to your business. And once you're up and running, their true value is in the ability to facilitate the activation of those audiences across the growing list of digital channels.
NOTE: While specific software and platforms aren't endorsed, you will see how tools like a customer relationship management system and web analytics work in a successful marketing mix.
- What is digital marketing?
- Understanding the marketing data being generated
- Reaching customers via digital channels like social, search, and display
- Working with digital experiences
- Selling online with ecommerce
- Going mobile
- Measuring and optimizing with testing and analytics
- Running and operating a business with technology
- Storing and extracting data
- Learning and predicting with data exploration and modeling