What exactly is a data management platform?
- Simply put, a data management platform is a hub that captures the interactions among the databases and stores this insight in one user-friendly, system.
- Once housed, the data is then presented in a manner that most befits the marketers, publishers and the overall business.
Sounds quite like a data warehouse. How is it different?
- Theoretically, data management platforms can be used to organize and manage any type and form of information.
- But for marketers, they’re usually used to generate audience segments, which are subsequently used to target specific users.
- DMPs can help link the marketing activities, resulting campaigns and audience data together in one, centralized location and use it to help optimize future buys.
How does a DMP work?
- A DMP collects data from each and every touch point that the business has with customers. This can be any online touchpoint – website, mobile app, marketing campaigns, social media etc. or offline information – historical information, call center inquiries, etc. It also gathers third party data. It then creates audiences and uses data to push the audiences into buying/execution points.
- Next, it optimizes the results using lookalike audiences. A lookalike audience is a term used to reflect on the audience that is like best performing audience.
- Finally, the DMP collects response data and repeats the process using the new data gathered. This process is a constant loop that continues to grow and optimize in order to fine tune your campaigns in real time and find new audiences for you.
Is Data Management Platform for you?
- This can be best decided by first identifying the business goals and targets.
- Once the goals are in place, they will become an asset in getting ultimate value out of the DMP, and will evolve as the program matures, with new benchmarks based on ongoing results.
The Take Away:
- As delivery channels continue to grow and expand – the various avenues through which your customers are communicating with the business — would provide information and clues about their needs and expectations.
- A Data Management Platform can help to pinpoint customer interactions across the multi-channel ecosystem and provide valuable information.
- The real question here shouldn’t be why use a Data Management Platform, rather how to get started?