Have you ever wondered how marketers find the right places to advertise given that there are billions of websites live on the web? Here’s a little secret – they don’t scour the web for weeks in search of a suitable place to publish. They use DMPs, which can help you maximize the ROI on your marketing campaigns using sophisticated data gathering, analyzing and sharing tools. If you want to find out how a DMP can help you expand your reach and grow your customer base, give us a call.
What is a DMP?
A data management platform (DMP) is a technology platform used by a broad range of industries to manage, collect and store data, often for digital or online marketing and advertising purposes. DMPs can receive data from a variety of sources, including mobile, offline, and online resources.
You can use a DMP to store, manage and analyze behavioral, demographic, geographical, and contextual data about website visitors, marketing campaigns, and customers. A primary benefit of DMPs for publishers is that this data can be used to target specific users while you are developing and optimizing digital and display advertising campaigns.
Using a combination of first-, second-, and third-party data, marketers, agencies, and publishers can use DMPs to create audience profiles. By analyzing this data, such as website user trends, you can use a DMP to enhance your advertising campaigns’ ability to appeal to these specific audiences. Usually, marketers use DMPs to target potential customers across third-party advertising networks, allowing them to increase their reach and maximize their return on investment (ROI).
How Do Agencies and Publishers Use DMPs?
Organizations use DMP data for varying reasons. In general:
- Agencies utilize DMPs to gather and analyze data regarding their client marketing campaigns
- Publishers use data stored in their DMP to gain a more in-depth understanding of their digital readers
The primary benefit of DMPs is that you can use just one platform to achieve all the purposes detailed above. With access to a vast selection of data stored and analyzed in one place, marketers, publishers, and agencies can optimize their marketing strategies and embrace multichannel advertising. They can also gain valuable insights regarding their campaigns and audience profiles to see which marketing tactics perform the best to develop more effective future strategies.
What Is First, Second, and Third-Party Data?
First-party data usually comes straight from customers or website users and is considered the most valuable of all data types because advertisers with first-party data have direct relationships with their users. For example, a user may have previously engaged or interacted with the advertiser, leading to documented data about that user.
First-party data may include:
- Information from a marketer’s web analytics platforms
- Customer relationship management (CRM) records
- Data gathered from signups and subscriptions
- Transactional systems
This type of information is less common than both first- and third-party data sources. Essentially, one advertiser will pass on their first-party data to a different agency based on a partnership agreement. When the second agency receives this data, it is considered second-party data.
An example of when this process may happen is two companies within the same industry that don’t directly compete sharing data to benefit each other. For example, a business that sells sports clothing might partner with a company that promotes events. Because each party has customers with similar interests, sharing data can be beneficial to both parties. The company that sells sports clothing may be able to advertise their products on the website that organizes events, and vice versa. This also applies to purchased data, such as email lists.
Third-party data is sometimes considered less valuable than first and second-party data; however, advertisers can still use it to target specific audiences. Third-party data comes from a variety of sources, often through integrations with a range of software and technology platforms. Many agencies specialize in collecting third-party data to sell to publishers and advertisers for audience targeting.
Who Uses DMPs?
Any company that creates its own marketing strategies might use a DMP. However, DMPs are primarily utilized by:
- Marketers, and
- Advertising agencies
Usually, marketers use DMPs in conjunction with a DSP (demand-side platform), which is a technology that advertisers use to buy advertising based on the data stored on and analyzed by their DMP.
What Does a DMP Do?
Businesses use DMPs to automate a variety of tasks, such as:
1. Data Collection
DMPs let marketers, publishers, and agencies collect first-party data and import data from third-party providers, allowing them to store all the information on one platform.
Examples of data that your DMP can collect include information about customers, such as purchasing trends, and information about a user’s online activity, including landing pages visited, websites visited, interaction with mobile and tablet apps, online campaigns, and more.
2. Data Classification
DMPs allow agencies and marketers to segment and organize data to develop distinct audience profiles. By assembling data into relevant categories, you can access it and put it to use more efficiently.
3. Data Analysis
By analyzing data such as a customer’s past purchases, website clicks, and response to adverts or offers that they’ve seen, you can use a DMP to gain a better understanding of their intentions. With this insight into your customers’ activity, you can tailor your adverts to make them more appealing. You can also retarget customers and promote content that they may find interesting.
4. Data Transfer
Once a marketing agency or publisher has gathered and analyzed their data using a DMP, they can provide it to other trading desks, advertising networks, and exchanges which may benefit from it. Partner agencies might be able to use such data to target new users and expand the reach of their campaigns. They’ll be able to find out which products a particular audience segment might find appealing.
DMPs can potentially scale millions of data points. By analyzing such information, they can provide insights to help marketers optimize their campaigns and make them more appropriately targeted for specific audience profiles.
DMPs ought to be transparent regarding where all their data comes from so that the information can be provided to other technology platforms, such as DSPs, ad exchanges, and sale-side platforms. This integration helps marketers create native content, personalized ads, and highly targeted advertising campaigns.
Why Use a DMP?
Using a DMP can be advantageous for numerous reasons, especially regarding advertising. With the capacity to manage and analyze first-, second-, and third-party data using a DMP, advertisers can:
1. Retarget Customers
You might find opportunities to retarget customers who visited your website but didn’t make a purchase. You can target these customers on other websites by advertising products that they may still wish to buy.
DMPs provide valuable insights to help marketers identify new users and prospective customers.
3. Site Optimization
By studying how people use your website(s), such as which pages they viewed and which links they clicked on, you may be able to optimize your site for your target market. You may find ways to revamp content and enhance the functionality, usability, and layout of your site to bolster the user experience, improving your ability to encourage users to revisit your website in the future.
4. Audience Intelligence/Profiling
Find out which types of people are visiting your site to build audience profiles. For example, you may be able to identify values your customers have in common to segment your audience profiles and charge a higher rate for such data.
5. Buy Media
Owners of first-party data can either purchase data from other sources or sell their data to third parties. Through such partnerships and the sharing of information, advertisers can increase a company’s reach and maximize the ROI on their marketing campaigns.