Colin Grieves at Experian looks at the growing importance of Data Management Platforms and how to address some of the common myths.
When it comes to DMPs (Data Management Platforms), it’s safe to say they don’t come without their misconceptions. These incorrect perceptions are holding organisations back from embracing potentially game-changing capabilities. DMPs can do a lot for businesses, and it’s time for the industry to take note.
‘DMPs are just for display advertising’
Programmatic advertising has undoubtedly evolved in the world of digital advertising. And with the rise of programmatic technology, advertisers need to be all over the tools which makes it as effective and efficient as possible. DMPs are ideal for that. They give the insight from all the relevant sources for programmatic to be as accurate as it can be, taking it away from being a channel which enables a brand to make fast decisions, but not necessarily the right ones.
DMPs can complement advertising in terms of both audience creation and campaign planning, providing a sure fire way to get adverts in front of the right people. However, they’re also highly effective when applied to several other uses, including improving marketing accuracy, connecting device IDs and predictive analysis.
The DMP exists to use all the data you can feed it and create relevant actions based on the insights from that information. This can plug into any of your executing channels and those insights can power any of your strategies or campaigns, not only advertising and acquisition. DMPs can help advertisers and marketers intelligently communicate with specific prospects, present dynamic content, retargeting and much more.
DMPs should be viewed as more than an advertising remit. Seeing it as only that means risking missing out on a whole host of opportunities that will help boost marketing efforts.
‘A DMP is only a database’
While it’s true a DMP can be a form of database, it can do so much more. It draws data from a host of different sources (Email, CRM, cookies, mobile IDs etc.) and compiles all that information to create a complete view of those customers. It can then push decisions out through the same channels based on the insights it has garnered from the information it holds – more than a regular database.
‘DMPs are for first party data only’
A DMP does use first party, that’s for sure. And as your first party data is your most valuable and often that which most insights come from, it’s importance shouldn’t be overlooked. However, to get the most out of your first party data, you need to combine it with second party data to enhance it and then find lookalikes. A DMP is there to take in your first party data and supplement it with any second or third party information that is needed. Some companies offer specialised DMP services for this purpose, making it easy for advertisers and marketers to easily combine these sources.
‘DMPs put my data at risk’
Safety and security are crucial to marketers and advertisers, even more so where data is concerned. First party data is the most valuable information to an organisation and often takes a lot of time, resource and investment to pull together. Marketers need to overcome any anxieties over data in order to really make the most of it. But it’s not just a case of letting go – there are dangers you need to consider. The best, and safest, solution is to ensure that the DMP you are using or the managed service you have implementing your activity are trusted and reliable. Keep well away from the rogue traders and make sure you work with someone who has a history of safeguarding the security and privacy of your customer data.
‘Only data gurus can use DMPs’
There’s no denying that the world of marketing today is a complicated one. People are complex, so we have to match that to communicate with them effectively. While DMPs can sometimes require sophisticated processes, there is help and support available. So whilst it is true a DMP is a capability many could and should use, it is equally true that you need the right people to get the best out of them. In the world of DMPs you need to avoid providers who give you access to a DMP and then leave you to your own devices and focus on those who can give you the expertise you need.
‘There’s no difference between DMPs and DSPs’
In the data world there are numerous acronyms, so it’s no surprise that DMPs are often confused with DSPs (Demand Side Platforms).The line between the two is blurring, but the way to consider the difference is that DMPs gather, sort, analyse, and export data, while DSPs are used to buy media.
They’ve always existed side-by-side with data flowing from the DMP to the DSP. DSPs are not media agnostic, but DMPs are. While a DSP can perform some of the roles of a DMP it is not a standalone method of organising data and executing actions off the back of insights. A DMP allows your data to be considerably more portable and enables you to plug insights into a range of executions channels – not just a single one (such as media).
By Colin Grieves
Experian Digital Marketing & Media Services