Big Data has opened up new avenues for publishers, adnetworkers and advertisers to unlock and utilize the large amount of valuable audience data to create a powerful real time bidding strategy.The DMP uses the data that may be generated on your websites, social networks, mobile applications etc. This data is highly relevant yet unused and the DMPs utilize this to target the exact segment of audience. This data includes a range of information ranging from personal information to demography and there may also be information generated from interactions online on various websites.
So, the question arises how do you shape this valuable data into gainful insights and then trigger it to initiate outcomes? This is the power of Data Management Platform (DMP).
What actually is a DMP? Well it is pretty simple, it manages data. But is that all? Basically DMP is a software which serves as a warehouse to data. It collects, sorts, translates, classifies and stores information about the users like their interests, preferences, browsing pattern etc. and eventually gives out this information in a form which is useful for marketing strategy.
This data is specifically oriented into three Vs: Volume, Variety and Velocity. Whatever the size of data, big or small, it can either be all structured or all unstructured. All the data whether structured or unstructured, of all varieties and also the speeds at which this data is processed, is retrieved from emails, social networks etc.
Segment Your Data with DMP
Let’s understand this with an example – Imagine that you are marketing a medical shop that delivers prescribed medicines at home and you want high quality leads. You have advertised about your shop at all nearby places but unfortunately that has not turned out well.
But, what if you come to know that there is segment of audience that is old and is on continuous medication. And you also come to know that those couples want medicines to be easily available to them at the nearest place. So, using the data collected from a DMP, an adtech can create an ad targeting the exact segment of audience which can be more effective and can turn into leads.
A DMP is an integrated platform that combines the first and the third party audience data collected from the cross channel marketing. Technically the DMP lets you combine the data from varied sources. Your data, which may technically be called First party data can be mixed up with the data that is collected from a different source called the Third Party. This gives out a lot of information at the end.The first party basically is the data that is being primarily collected from you and this may include all the personal details, geographic and demographic details, browsing details etc. while the third party essentially relates to the varied data that finds interaction with the other websites.
How to achieve the best ROI
When we talk of DMP we are actually talking of digital advertising. In order to achieve the best Return on Investment (ROI) you need to target it right.After penetrating to a segment of audience you need data to assess which target group suits better. This can be done by taking into consideration various factors like age, demography, interests, browsing patterns, etc. Sometimes you can even track the target audience based upon the type of devices they use. . The DMPs may seem to be targeting mainly the online ads but there are varied utilities to it other than being a flare to marketing. Publishers do so to gain control on the data and also to set up their inventories and get the specific prices out of it.
What it can do?
- Extract data:Gather information about the customers from all possible sources. Furnishthe collected data to the target audience in a manner that best suits their needs. It alsoprovides a viable platform for the marketers, publishers, ad networks and other businesses to create ads on the news feeds of the target audience which helps them toreach their targets and eventually generate an enhanced ROI.
- Management and Organization of Data – The imported data is then organized at the customer level if it is meant for them or at the cookie level for an unknown user. Data integrating after a proper organization helps marketers in driving great outcomes.
- Interpretation of Data – DMP helps to fragment the data and break it down to help marketers and other businesses come up with an actionable strategy. It enables to decode the crucial information to implement certain complex solutions that were impossible earlier. Generally marketers have data like CRM data, social data which they don’t use to profile and segment their customers. DMP is one way where you can utilize any form of data which may be structured or unstructured and still you can use it for better understanding of customers.
- Find your segments: In DMP the segments actually refers to the ‘audience’. Look for the segments or audience after sorting and interpreting the collected data. The marketers usually do this by setting up certain parameters and defining your audience accordingly. For instance you may set a parameter like youth in India, above 25 who use an android phone. The DMPs help the marketers to frame ads in an effective manner by targeting audiences across various platforms.
- Integrate your data – DMP enables you to integrate your segmented data by combining the 1st and the 3rd party data. This data is then directed towards the specific users marketers are targeting.
Send instructions: DMP finally puts all the information to meaningful purpose. This is where you target the right customer at the right time. Instructions basically are a combination of who are your target, what you are going to target them with and also across what devices.
What it cannot do?
However, every coin has two sides. DMP definitely has revolutionized the digital advertising yet there are some wrong notions about it. There are thing that people believe the DMPs can do but the fact is that the DMPs are not designed to do certain things and also many firms are skeptical about the use of DMPs which thus makes it less suitable for many organizations. There are varied expectations among the audience like publishers, marketers etc. however there seems to be a sort of gap between the expectation and the delivery of the services that DMP can provide.
- There are very less number of marketers who have exposure to DMPs. The exposure is still not far reaching.
- Also there is an issue of changing the legacy systems which is quite a challenge for marketers. The brands usually do not change their technologies often. There is an apprehension among various marketers that their staff lacks the knowledge regarding the DMPs and hence they have no plans of incorporating the same.
- They also fear that the implementation of DMP is quite a difficult and challenging task.
- Some experts believe DMPs are labor-intensive andare not user friendly.
Though Data Management Platforms forms an innovative backbone for data driven campaigns, they are still in an evolving phase which cannot be overlooked. But, try using DMP to bolster your marketing campaign.