What is Data Management Platform (DMP)?
A DMP or Data Management Platform is a technological tool that collects, aggregates and centralizes different types of data from different sources. DMPs facilitate the management of this data (psychographic, demographic, and behavioural) on a single platform, which allows us to create audience segments.
This type of software has become an indispensable tool in digital marketing, and especially necessary for carrying out online advertising campaigns.
Do you want to know why it’s so important and how it works? Let us tell you about it!
Why is it so important?
Every marketing campaign is based on data allowing advertisers and companies to continue generating a target audience.
Audiences and the data that shapes them are equally important in other areas such as planning sales or digital advertising strategies. As advertisers need as much information as possible from their audiences, they need to collect data from different sources.
The Data Management Platform (DMP) also helps advertisers to carry out programmatic buying of advertising space on different websites and publishers more efficiently and easily. This allows them to approach a number of specific audiences and users, and thus increase their chances of success.How can we then collect as much data as efficiently as possible? Given the sheer volume of information from big data, we need a data management platform.
How does a DMP work?
Because raw information is useless, these platforms take care of data management through the following three steps:
In this step, we proceed to sort the different data.
Finally, the data is sent to the ad servers at full speed.
What types of data does a DMP collect?
Ya hemos mencionado que una Data Management Platform o DMP recoge datos de diversas fuentes, pero, ¿a qué tipos de datos nos referimos exactamente?
1st party data
This is the data from the advertiser or the company that has been collected through its social networks, its website, its email marketing campaigns or its CRM (Customer Relationship Management), among other sources.
This is the most valuable data since it refers to users who have visited the brand’s digital channels or to their own customers.
Of course, you must ensure that this data has been obtained in compliance with the GDPR.
2nd party data:
This is the same data as the 1st party data, but obtained in this case by another company. For example, a ski advertiser might be interested in audience data from a snowwear store, since they are lookalike audiences. This type of data is also useful for business synergies.
3rd party data:
These are purchased data from different sources than those of the advertisers.
These data usually include information on gender, age, interests, geographic location, marital status, income level or socio-professional category.
In addition to being more expensive, as the way in which this data is obtained varies from company to company, third party data may not always be reliable.
Ultimately, millions and millions of data are managed by DMPs. If you want to further increase the effectiveness of this software in your campaigns, you can connect your DMP to a CRM.