When it comes to DMPs (data management platforms), there’s certainly no shortage of misconceptions. These false 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 pay attention.
‘DMPs are for display advertising’
There’s no denying that programmatic advertising evolved in the world of digital advertising. And with the growth of programmatic technology, advertisers need to be on top of the tools which make it as effective and efficient as it can be. DMPs are perfect for that. They provide the insight from all the relevant sources for programmatic to be as accurate as possible, moving it away from being a channel which enables a brand to make decisions quicker, but not necessarily the right response.
DMPs can support advertising when it comes to audience creation and campaign planning. They provide a sure fire way to get adverts in front of the right people. But they’re also highly effective when applied to several other uses, including improving marketing accuracy, connecting device IDs and predictive analysis.
The DMP is there to use all the data you can feed it and produce relevant actions based on the insights gleaned from that information. This can plug into any of your executing channels and those insights can power any of your strategies or campaigns, not just advertising and acquisition. DMPs can help advertisers and marketers intelligently communicate with specific prospect groups, present dynamic content, abandoned baskets, retargeting and more.
DMPs need to be considered as more than only an advertising remit – taking that view puts you at risk of missing out on a huge range of opportunities to boost your marketing efforts.
‘A DMP is just a database’
While a DMP is potentially a form of database, it is capable of so much more. It ingests data from multiple 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 solely for first party data’
A DMP uses first party data, true. And as your first party data is your most valuable and often that which most insights are based on, it’s incredibly important. However, to get the most out of your first party data you need to combine it with second party data to at first enhance it and then find lookalikes. A DMP is there to ingest your first party data and any second or third party data you require. In fact some companies offer specialised DMP services allowing advertisers and marketers to easily combine these sources.
‘My data is at risk by using a DMP’
Safety and security are always paramount to marketers and advertisers, and that’s never more true than when talking data.
First-party data is the most valuable information to an organisation and in many cases has taken a lot of time and investment to gather. However, in order to get the most out of it you need to share it to combine and enhance it with other data sources. Getting over this data anxiety is critical for marketers wanting to make the most out of their first-party data. But it’s not as simple as just letting go – there are dangers you need to consider. The best solution is to ensure that the DMP you are using or the managed service you have implementing your activity are trusted and reliable. Stay away from the cowboys and make sure you work with someone who has a history of safeguarding the security and privacy of your customer data.
‘Only data geniuses and experts can use DMPs’
There’s no hiding the fact that the world of marketing today is a complicated one. People are complex, so we have to match that in order 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 people to get the best out of them. In the world of DMPs you need to stay clear of 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.
‘DMPs and DSPs are the same thing’
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 beginning to merge but the way to consider the difference is that DMPs gather, sort, analyse, and export data, while DSPs are used to purchase media.
They’ve always existed side-by-side with data flowing from the DMP to the DSP to inform the DSP of what audiences to purchase media against. DSPs are not media agnostic, DMPs are. While a DSP can perform some of the roles of a DMP, it is not a standalone method of sorting 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.