Data Management Platform

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A data management platform ( DMP ) is a technology platform used to collect and manage data, primarily for digital marketing purposes. It enables the generation of target group segments that are used to target specific users in online advertising campaigns. It can use big data and artificial intelligence algorithms to process large amounts of data about users from various sources. A DMP is used to organize and monetize data in the real-time bidding system by licensing it to global sales platforms ( DSPs ).

Processing of data on a DMP

DMPs are used in the following areas:

1. Collecting data - the platforms are used to collect data from many different sources. The data about users and their activities come from:

  • Offline sources (e.g. CRM systems, surveys)
  • Online sources - mobile and desktop devices (e.g. mobile apps, online campaigns, landing pages, websites)

2. Integration - DMPs integrate data from various sources and create a 360-degree customer view. With the help of machine learning algorithms, the DMP collects data about users and integrates all data types: 1st, 2nd and 3rd data.

3. Manage data - on DMPs, companies organize data that they own or collect from certain sources. The platforms allow custom customer segments and segment customers to be created, e.g. B. by markets, online activities, favorite brands or purchased products.

4. Activation - data collected by DMP is activated on the marketplace, including ad servers or DSPs. The data stored and organized on DMPs is used to target selected audiences in online campaigns, through channels such as:

  • digital screen
  • Video
  • social media
  • search engines

Functionalities of DMPs

DMPs are used for profiling, analyzing and targeting online customers in digital marketing. The platforms are used in the following areas:

Ad targeting

Create audience segments and target specific users with personalized ad campaigns. For example, an automotive company using a DMP may create a custom segment of customers interested in buying a new SUV. The company can then license its own segment for the DSP and run a campaign with a new SUV aimed at users interested in buying the new car model.

User profiling

the DMP platform is used for customer profiling. A user profile is a group of data that represents a real person through user-related information, e.g. B. Needs, interests or behaviors. Profiles are created manually or with the help of machine learning algorithms that automatically analyze and profile even billions of Internet users. To create a user profile, the machine uses e.g. B. content-based techniques to analyze what kind of websites users visit and on this basis set relevant interests of the users, such as technology, news, sports, art & entertainment.

“Look-alike modeling” is a method to find new customers who are very similar to the current customers. DMP profile users who have purchased a specific product and allow them to find a new group of customers with similar profiles (look-alike) in external databases in order to display targeted ads.

Business Insights

DMPs provide information about customers or services. The platforms are also used to enrich internal CRM systems with external data. The CRM enrichment process integrates user data to create a 360 degree customer view. New user data contains attributes such as interests, purchase intentions, websites visited or online behavior. The DMPs provide other services such as Google Analytics to display the purchase process, i.e. H. the number of times the ad was clicked before the customer bought the product.

Audience Analytics

DMPs are used to analyze the behavior and profiles of online customers (i.e. general interests, purchase intentions, behavior) in order to find the best converting target group and to address them in online campaigns.

Ownership of data collected through DMPs

The most common types of data are:

  • 1st party data - data collected by the company itself, data owned, i. H. Website data, mobile application data and CRM data.
  • 2nd party data - data collected as a result of the collaboration. It contains online campaign data and customer journey data.
  • 3rd party data - data supplied by data providers and available in the market at a certain price.

The data collected via a DMP is divided into types:

  • Observed data - a digital footprint of Internet users, i.e. H. websites visited or type of web browser used.
  • Inferred (predicted) data - conclusions based on the behavior of internet users. For example, by analyzing statistics from the advertising campaign, computers find users who buy most often and target advertisements to them.
  • Declared data - the data that internet users have declared themselves, i. H. in online forms or apps (indicated age or gender).

Key technologies for DMP

DMPs use machine learning algorithms and big data analytics to profile customers and integrate data from various sources.

  • Big Data Analytics - Big Data technology is used for advanced analysis of online traffic and user behavior. It makes it possible to find growing trends, create look-alike models or analyze profiles of specific target groups.
  • Artificial intelligence and machine learning algorithms - for integrating data from many data sets and for segmenting online customers. The machine learning algorithms define e.g. B. the interests and purchase intentions of internet users based on websites visited and online behavior.

Global data and program market

Online customer data is used in programmatic advertising. According to OnAudience.com, the market data market for global data material is growing rapidly in the US and EU markets. U.S. marketers in 2018 will spend more than $ 39 billion on programmatic advertising. [obsolete] In Europe, marketers invested 8.1 billion euros in programmatic ads in 2016. The global data market is growing at double digits. Its value will reach $ 18.2 billion in 2018, which is almost 35% growth. [outdated]

Privacy Issues - DMP and GDPR

DMPs help companies comply with European data protection regulations - GDPR . According to the new rules, consumers must be given access to and control over the storage and use of their data. DMPs give companies control over all of the data they collect, which can be easily tracked, changed, or deleted. To comply with the GDPR - regulations that, among other things, expand the catalog of information that could be used to identify a person - companies at DMPs implement an automatic anonymization process for all data processed. It makes all data collected and stored on the DMP anonymous, so no personal data is processed.

Individual evidence

  1. ↑ What is a Data Management Platform? - What is a DMP? . Retrieved June 5, 2018.
  2. ↑ WTF is a data management platform? .
  3. ↑ MarTech Landscape: What is a data management platform (DMP)? .
  4. ^ User Profiling-A Short Review .
  5. ↑ eMarketer Releases New US Programmatic Ad Spending Figures .
  6. ↑ European Programmatic Market Sizing 2016 .
  7. ↑ Global Data Market Size 2016-2018 .
  8. ↑ a b This is why the GDPR is the best reason to implement a DMP .