Data Management Platforms (DMP)

What is a DMP?

In simple terms, a data management platform is a data warehouse. It’s a piece of software that sucks up, sorts and houses information, and spits it out in a way that’s useful for marketers, publishers and other businesses.

What is a DMP used for?

A DMP houses important consumer and customer data. DMPs utilize for first and 3rd party data in order to provide agencies and advertisers a better picture of their target audience. Agencies can then use this data to see actionable insights and drive effective ad spend. An agency can have a relationship with a DMP which houses all of their data. The DMP would then plug into the DSP so that the collected audience data can be targeted and purchased via the DSP.

Publishers can also plug their DMPs into SSPs in order to gain important data about their website. They can discover insights about their sites such as what kind of users like to visit which pages, user dwell time on each page, and what percent of users go below the fold, etc.

What Criteria can I use to Evaluate DMPs?

• How in-depth is it able to track customer behaviors beyond just transaction records. In essence, how granular is the data?
• How well it tracks and records across different platforms such as mobile, PC, tablet, and payment devices such as Paypal, and direct check outs.
• How flexibly it can merge second-party and third-party data.
• How well can it run customer-level analysis to predict purchases?

How do I launch with a DMP

• Organization
  • Organize your 1st party data into the relevant categories and taxonomies
• Segmenting and Audience Building
  • Segment the data into targetable audiences. This will allow more effective ad targeting into users that are more likely to respond a certain ad stimulus.
• Insights and Audience Profile Reports
  • After the data has been gathered, utilize the DMP’s audience insights and reporting to determine the different purchase behaviors, inclinations, and other actionable insights of your target audience.
• Activation
  • Agencies can now connect their DMPs to the DSPs in which they want to conduct buys from. This can be done either through a direct API integration from DMP to DSP or a more manual onboarding process.
  • Publishers can utilize this data to determine which content to show depending on which segmented audience is viewing their sites.

Example DMPs

• Adobe Audience Manager
• BlueKai
• Krux
• Lotame
• Salesforce DMP
• MediaMath
• Google Audience Center
• Liveramp

Sources

• https://digiday.com/media/what-is-a-dmp-data-management-platform/
• https://www.forbes.com/sites/paultalbot/2018/05/15/data-management-platforms-selecting-the-best-dmp/#60372847cdc0
• https://www.lotame.com/what-is-a-data-management-platform/
• https://www.g2crowd.com/categories/data-management-platform-dmp

We’re entering a new world in which data may be more important than software.
— Tim O’Reilly