what is a DMP in marketing?

what is a DMP in marketing?

While Big Data is a subject that concerns more and more companies for the processing and saving of their data, many solutions are being put in place, whether technical such as data warehouses or legal order such as GDPR. And while data collection is sometimes criticized, it is still useful for marketing. Better consumer knowledge and optimization of online advertising is what a Data Management Platform is capable of.

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The main functionalities of a Data Management Platform

Using a Data Management Platform allows all the data collected via different digital tools. The company then obtains several benefits, the main one of which is to improve its CRM (“Customer Relationship Management”).

Without the use of a Data Management Platform, this task could be tedious, because:

  • As digital campaigns operate independently, their data is not always interconnected;
  • The different tools used by the company operating independently do not exchange between them;
  • The customer journey can be very complicated (if not impossible) to follow due to cross-device data relating to user device changes.
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In addition to centralizing data, a Data Management Platform is also proving to be a powerful monitoring and management tool. Moreover, many digital and advertising agencies use a DMP to improve their marketing actions. Below, the main features of this tool that allow so much efficiency.

Aggregation, standardization and organization of data

A Data Management Platform has the ability to import a number of different digital data:

  • Data relating to cookies;
  • Data to behavior;
  • Data relating to audiences;
  • Off line data.

Offline data refers to all data that is generated outside of digital media. They relate, among other things, to supplier data and data from physical points of sale.

This ability to import all this data from the various horizons mentioned is the aggregation function of a DMP. But once aggregated the data must also be normalized.

Data normalization is about establishing relationships between data. It is this notion of relationship that makes it possible to give meaning to all the information collected.

Once aggregation and normalization is done, the data is organized by keyword. The keywords relate to the activity of the company. If it has an e-commerce activity, the keywords may relate to the product categories. The aim here is to be able to personalize the processing of data in relation to the needs of the company using the DMP.

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Data analysis to understand behaviors

The classification of data explained above allows a DMP to become a very relevant analysis tool.

In fact, the processing of the information collected makes it possible to trace the behavior of users and to better understand their behavior, but also their intentions. This is necessary for the smooth running of digital actions: the most promising acquisition channels are more easily identifiable and campaigns can be optimized to have a better return on investment.

Creating audiences and segments

In addition to analysis, a DMP is also able to manipulate data to segment them according to different criteria and create audiences. This function is extremely when the business reaches different audiences. Thus, it can analyze in detail each type of customer and better understand the behaviors and expectations of each.

But a DMP is also capable of going further. Thanks to its ability to understand different audiences, it can predict larger audiences. This is called the “Look Alike” function. Thus, the DMP can assimilate a stranger to an audience simply by analyzing their cookie. This is a powerful feature to impact people unknown to the business.

Facilitation of data transfer

Another feature of a DMP is the facilitation of data transfer to DSPs and other ad networks. No intermediary tool is therefore necessary, from collecting the information to transferring the analyzed data to the platforms for purchasing advertising space.

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Not to mention that a DMP has no limit in the amount of data it can collect, manage and transfer.

Performance measurement and monitoring

Finally, a DMP centralizes the information that makes it possible to measure and monitor the performance of digital campaigns. In this way, channels, content and audience segments are correlated to highlight what has worked best. This feature gives the opportunity to set various KPIs to refine campaigns over time.

It seems obvious that Data Management Platforms are very useful tools for companies for data processing in their advertising use. However, the application of the GDPR pushes DMP editors to modify their operation since these platforms process the personal data of Internet users. Data collection must therefore be carried out in accordance with the law and the Internet user.

Any company that has recourse to a DMP must therefore meet the requirements of the GDPR, that is to say: establish a procedure to guarantee the security of data, keep an activity register, obtain the consent of Internet users for the use of their data and be able to provide proof of consent to the CNIL.

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