DMP (Data management platform)
What is a DMP (Data management platform)?
The term DMP, an acronym for data management platform, refers to a platform that collects, stores and organizes information from various sources in order to support a company’s activities, but is mainly used to optimize digital advertising.
1. How a DMP works
In broad terms, a DMP works simply: it collects data from a variety of sources, stores it in an organized way and finally sends that data to advertising platforms according to various criteria. In more detail:
– Data collection. Data is obtained from various sources, which can include first-party data (obtained by the advertiser itself), third-party data, cookies or other sources.
– Data processing. All information, once collected, is sorted to create audience segments ready to be used when needed.
– Transmission of the data to the ad servers. Once the audience segments have been created, they are used as value criteria to make programmatic advertising buying decisions.
2. Data sources of a DMP
The DMP obtains data from different channels, which in turn can be fed from other sources. Data comes from three types of sources:
– 1st party data. Data obtained from our own channels. These own channels are: websites, social media, email marketing campaigns, landing pages, apps, etc.
– 2nd party data. This is the same type of data as 1st party data, but in this case it doesn’t come from our channels but from other channels. This is the case of data from related companies, whose data may be relevant to complement our own and increase its value.
– 3rd party data. This is data that is generally purchased from specialized companies and comes from external sources (like 2nd party data). Acquiring it is very expensive, and it is vital for reaching a larger audience in a short time.
3. Advantages of DMPs
DMPs bring several benefits to all companies that use them. Some of the most relevant advantages are:
- They ensure effective control over the data and its segmentation.
- They help you better understand the target audience.
- Ability to process huge amounts of information quickly.
- They enrich existing data and add value to it.
- They boost the effectiveness of cross-channel marketing.
- They make advertising more effective and help improve ROI.
- Handling of data from multiple sources.
- Optimization of the user experience.
- They allow you to manage multiple campaigns across different advertising networks.
- Personalization that is easy to apply to email marketing campaigns, web and social media.