What is a DMP (data management platform)? Function, advantages and future
Posted: Thu Dec 05, 2024 5:41 am
Data is the big challenge for advertising today. We have more information than ever about users, but that same amount of information makes it difficult to process the raw data and obtain value from it.
One of the solutions to this problem is DMPs or data management platforms . What are they, how can they help us and what challenges do they face? We'll tell you!
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What is a DMP data management platform? Function, advantages and future
What is a DMP and how does it work?
A DMP or data management platform is a user data management tool whose objective is to generate segments to correctly identify advertising audiences .
The operation of DMPs is based on three steps:
Data collection . This may include first party data (obtained by the advertiser itself), third party data, data from cookies or other sources.
Data processing . All collected information is sorted to create consistent audience segments.
Transmission of data to ad servers . The audience segments created by the DMP are used to make programmatic purchasing decisions in a matter of tenths of a second.
Advantages of DMPs and example of use
DMPs can bring multiple benefits to advertisers, such as:
The ability to process large amounts of data quickly.
A better understanding of your target audience, through behavioral insights obtained from multiple sources.
Improved advertising effectiveness. By targeting exactly the right audience, ads achieve more conversions.
For example, let’s imagine that we are a home appliance brand. Using a DMP, we can set up an audience segment consisting of people who have just purchased homes and have searched for home appliances in the past few weeks. If our brand is high-end, we can refine it even further and target only users with a certain level of purchasing power.
What is the future of DMP?
The data management platform is a technology that offers many possibilities to advertisers and has helped to advance digital advertising. But it faces an uncertain future due to two major challenges: the GDPR and the ban on the use of cookies .
The GDPR has imposed strict limitations on what data can be used in advertising and how it can be obtained, limiting the sources of data collection that power DMPs.
On the other hand, Google has already announced its intention to ban cookies in its browser , Google Chrome, starting in 2022. This further limits the possibilities of obtaining information about users and may make DMPs permanently obsolete.
Given this situation, one of the great technological alternatives to DMPs is CDPs (Customer Data Platforms) . The big difference is that CDPs are based on the company's own data (first party), which allows it to continue obtaining information from users while respecting all privacy regulations.
One of the solutions to this problem is DMPs or data management platforms . What are they, how can they help us and what challenges do they face? We'll tell you!
Do you want to know the 128 digital marketing trends and predictions that will change the landscape of our sector in 2024 ? Click here and download the free ebook we have prepared for you myanmar email list all the information.
What is a DMP data management platform? Function, advantages and future
What is a DMP and how does it work?
A DMP or data management platform is a user data management tool whose objective is to generate segments to correctly identify advertising audiences .
The operation of DMPs is based on three steps:
Data collection . This may include first party data (obtained by the advertiser itself), third party data, data from cookies or other sources.
Data processing . All collected information is sorted to create consistent audience segments.
Transmission of data to ad servers . The audience segments created by the DMP are used to make programmatic purchasing decisions in a matter of tenths of a second.
Advantages of DMPs and example of use
DMPs can bring multiple benefits to advertisers, such as:
The ability to process large amounts of data quickly.
A better understanding of your target audience, through behavioral insights obtained from multiple sources.
Improved advertising effectiveness. By targeting exactly the right audience, ads achieve more conversions.
For example, let’s imagine that we are a home appliance brand. Using a DMP, we can set up an audience segment consisting of people who have just purchased homes and have searched for home appliances in the past few weeks. If our brand is high-end, we can refine it even further and target only users with a certain level of purchasing power.
What is the future of DMP?
The data management platform is a technology that offers many possibilities to advertisers and has helped to advance digital advertising. But it faces an uncertain future due to two major challenges: the GDPR and the ban on the use of cookies .
The GDPR has imposed strict limitations on what data can be used in advertising and how it can be obtained, limiting the sources of data collection that power DMPs.
On the other hand, Google has already announced its intention to ban cookies in its browser , Google Chrome, starting in 2022. This further limits the possibilities of obtaining information about users and may make DMPs permanently obsolete.
Given this situation, one of the great technological alternatives to DMPs is CDPs (Customer Data Platforms) . The big difference is that CDPs are based on the company's own data (first party), which allows it to continue obtaining information from users while respecting all privacy regulations.