Data Management Platform (DMP) - Definition, Importance & Example
What is Data Management Platform (DMP)?
A data management platform or DMP is a merging platform to collect, organize and distribute primary, secondary and third-party data from all possible sources such as mediums which are online, offline, mobile platforms, browsing data, etc. It provides a strong base to data driven marketing techniques and exposes businesses to gain valuable and unique insights into their customer base. A data management platform or DMP also collects all the data to support DSP and SSP requirements, and provides effective insights for decision making in terms of target advertising, content customization and personalization. It is very important for marketeers to have access to powerful audience data, for them to understand the needs and wants of customers, and to be able to use that understanding through advertisement technology for brand development and brand awareness.
Importance of Data Management Platform (DMP)
Data management platforms are of quintessential importance to marketeers to figure out how their product(s) figures its way into the market. Some of the points highlighting the importance of data management platform are certain consequences of the use of a DMP:
1. Audience targeting and targeted advertising: It is very important to figure out your target audience and how to reach out to them. Their interests, needs and wants determine the course of your products. This may be done through digital or visual content.
2. Specifications for content and product development: The data derived from a DMP is very useful in determining personalized experiences for customers on online platforms.
3. Monetizing DMP output: The data collected might not be all of use so certain data can be sold for revenue generation.
4. Learning consumer behaviour trends: To learn more about customers when they access a website tell us how to enhance and develop their experience.
5. Growing customer base: Effectively increasing brand loyalty by retaining existing customers and getting new customers.
6. Paid searches: DMP driven audiences influence paid searches
7. Recommended sections: Brands like Amazon and Flipkart offer recommended sections based of DMP data analysis.
DMP or data management platforms accumulates the following types of data:
1. Web analytics tools
2. Mobile web, apps
3. Behavioral and demographic data
4. CRM data
5. Point-of-sale data
6. Social networks
7. TV data
Difference between Data Management Platform (DMP) and Demand Side Platforms (DSP)
|
|
DMP |
DSP |
|
Data collection |
No limit on robust data collection. Data is collected from all possible sources online or offline all possible mediums. |
Only collect data on a campaign level. Data is collected from limited sources |
|
Data portability |
Data can be exported from and to any media sources. This enables audiences built on DMPs to be seamlessly transitioned to DSPs and SSPs. |
Data limited to few media sources and a secondary platform for data analysis. |
|
Customized data management |
Due to export functionality, primary, secondary and third party data all are available for accessing. |
They are demand side platforms used for secondary data analysis for buying data based on influences. |
|
Data protection |
Provides data analytic insights for better processing and audience targeting. |
Use your data for overall efficiency improvement and revenue enhancement across clients. |
Example of Data Management Platform (DMP)
Every top data management platform has its audience optimizer solution is one the best in target advertising techniques for data analysis and collection. Its real time data management platform enables its user to collect data from all possible sources – primary, secondary and third party sources. Data can be used to create audience segments to make target advertising a bit easier. Consumer behaviour can be studied by studying audience segments for specific traits.
Hence, this concludes the definition of Data Management Platform (DMP) along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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