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DMP (Data management platform)

What is a DMP (Data management platform)?

The term DMP, an acronym for data management platform, is a data management platform that collects, stores and organizes information from various sources in order to support the activities of a company, but mainly used to optimize digital advertising.

1. How a DMP works

The operation of a DMP is broadly simple, it collects data from a variety of sources, stores it in an orderly fashion and finally sends that data to advertising platforms according to various criteria. In other ords:

– Data collection. Data will be obtained from various sources, which may include first party data (obtained by the advertiser itself), third parties, 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.

Data sources of a DMP

The DMP obtains data from different channels, which in turn can be fed from other sources. There are three types of source from which data is obtained:

– 1st party data. Data obtained from our own channels, such channels are: websites, social networks, email marketing campaigns, landing pages, apps, etc.

– 2nd party data. This is the same type of data obtained in the 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. The data will usually be purchased from specialized companies and will be from external sources (like 2nd party data). This kind of information is very expensive, but it is vital for reaching a larger audience in a short time.

Advantages of DMPs

DMPs bring several benefits to all companies that make use of them, some of the most relevant advantages are:

  • They ensure effective control over the data and its segmentation.
  • They help to have a better understanding of the target audience.
  • Ability to process huge amounts of information quickly.
  • They enrich existing data and add value to it.
  • They favor the effectiveness of cross-channel marketing.
  • They make advertising more effective and contribute to improve ROI.
  • Handling of data from multiple sources.
  • Optimization of the user experience.
  • They allow you to manage multiple campaigns in different advertising networks.
  • Personalization easily applicable for email marketing, web and social media campaigns.