What is a Data Management Platform (DMP)

A Data Management Platform (DMP) is a system that allows organizations to collect, store, manage and activate large amounts of data from various sources. DMPs are commonly used to consolidate data from multiple sources, such as website analytics, CRM systems, and offline data sources, into a single platform for easy access and analysis. 

DMPs enable organizations to gain a holistic view of their customers, allowing them to create more targeted and personalized marketing campaigns. Additionally, DMPs enable organizations to improve their data quality and make better use of their data assets, by providing them with a centralized location to store, cleanse and enrich their data. This can also lead to cost savings, by reducing the need for multiple data silos.

These are some of the most popular DMP systems available in the market:

  1. Adobe Audience Manager
  2. Salesforce DMP
  3. Tealium AudienceStream
  4. Oracle Data Management Platform
  5. Segment
  6. Treasure Data
  7. BlueConic
  8. Lotame
  9. Redpoint Global
  10. Lytics.

 

Each of them have their own set of features, pricing, and target audience. It’s important to evaluate the specific needs of your organization and choose a DMP that aligns with those needs. In order to make the most out of a DMP, businesses may need to invest in additional technology such as a data warehousing solution, a data integration tool, and analytics software. 

A data warehousing solution allows businesses to store and manage large amounts of data, while a data integration tool helps to connect and combine data from different sources. Analytics software is used to analyze and make sense of the data stored in the DMP and can include tools such as business intelligence, data visualization, and machine learning. 

Additionally, many DMPs integrate with marketing automation, CRM and other systems to give a more comprehensive view of the customer. All of these technologies work together to make the DMP more effective and provide a more complete picture of the data.

Best practices for implementing and using a DMP

  1. Define your data strategy: Before implementing a DMP, it’s important to have a clear understanding of your organization’s data needs and how a DMP fits into your overall data strategy. This includes identifying which data sources you want to collect, how you want to use the data, and what kind of insights you hope to gain.
  2. Clean and organize your data: A DMP is only as good as the data you feed into it. Before implementing a DMP, it’s important to clean and organize your data to ensure it’s accurate and complete. This includes removing duplicates, filling in missing fields, and standardizing data formats.
  3. Integrate with other systems: A DMP is most effective when it’s integrated with other systems, such as a CRM, marketing automation platform, and web analytics. This allows you to gain a more complete view of your customer and make better use of your data.
  4. Use data segments: A DMP allows you to segment your data into different groups based on specific criteria, such as demographics, behavior, or interests. These segments can then be used to target specific audiences with tailored messaging and offers.
  5. Monitor performance: After implementing a DMP, it’s important to regularly monitor its performance to ensure it’s meeting your needs and providing valuable insights. This includes tracking key metrics, such as audience engagement and conversion rates, to measure the effectiveness of your campaigns.
  6. Continuously Optimize: Continuously monitor and optimize your data, segments, and campaigns to make sure you are reaching the right audience with the right message. This will help to improve the performance of your campaigns and the overall effectiveness of your DMP.

 

A well-set up Data Management Platform (DMP) can help a business in several ways. Some of the returns a business can expect from a DMP include:

  • Improved targeting and personalization: A DMP can help a business segment their audience and target them with personalized messages and offers, which can lead to higher conversion rates and customer loyalty.
  • Better cross-channel marketing: A DMP can help a business unify data from different channels and devices, allowing them to create more cohesive and effective cross-channel marketing campaigns.
  • Increased efficiency: A DMP can automate many data management tasks, such as data cleaning and deduplication, which can save a business time and resources.
  • Improved ROI: By using data to optimize targeting and messaging, a DMP can help a business improve the ROI of their marketing efforts.
  • Improved customer insights: A DMP can help a business gain a deeper understanding of their customers’ needs and preferences, which can inform product development, marketing, and customer service.
  • Better data governance: A DMP can help a business ensure that their data is accurate, up-to-date, and compliant with regulations, which can help avoid costly data breaches and penalties.
  • Better measurement and optimization: DMP can help a business understand the performance of their marketing campaigns, identify areas for improvement, and optimize their targeting and messaging for better results.

 

Whether or not investing in a DMP is worth it for a business depends on the specific needs and goals of the organization. Businesses that do not have a significant amount of data to manage, or do not have a need for advanced data segmentation and targeting, may not see a significant benefit from investing in a DMP. For example, a small business with a limited number of customers and a simple sales process may not need the advanced capabilities of a DMP. Additionally, businesses that do not have a strong online presence or do not rely heavily on digital advertising may not see a significant benefit from a DMP. 

Businesses that are currently seeing the highest upshots from using a Data Management Platform (DMP) are typically those that rely heavily on data-driven decision making and have a large amount of customer data to manage. These can include industries such as e-commerce, finance, healthcare, and telecommunications. 

These businesses often have a high volume of data from multiple sources, and a DMP allows them to centralize and organize this data, making it more actionable and useful for creating targeted marketing campaigns and improving the customer experience. Additionally, businesses that have a strong focus on customer data privacy and compliance may also see significant benefits from using a DMP as it helps them to manage and protect sensitive customer data.