Data management platforms or DMPs are not a recent addition to the digital marketing world. The most up-to-date marketers and agencies have made use of DMPs for years to create customer profiles using online activity and behavior, conduct segmentation analytics, and develop segments for online targeted marketing.
DMP services have made it easier for marketers to focus on all-inclusive user data assets to facilitate individualized marketing. Here is how DMPs work to make that possible.
A data management platform ingests data and in return offers segmentation functionality. The DMP data warehouse holds online activity behavior, purchase data, marketing campaign data, first party transactional data, third party enrichment data, and so on. It matches data obtained from several separate sources to build customer profiles and bridge the gap between e-commerce, marketing automation, and marketing technology ecosystem (CRM) and the advertising technology system.
Media buying and optimization (Traditional use cases)
Most businesses use DMPs to address specific use cases in media buying. Marketers and agencies can reach targeted audiences more precisely and with a greater ROAS (return on ad spend). Other users of DMP tools leverage their tracking capabilities to get even better returns on ad spend. Cross channel performance marketing and attribution modeling have significantly helped marketers who have a tendency to overspend save a fortune.
There are several known advantages of using DMPs to buy and optimize online media. You will hardly hear of a marketer who wants to migrate from DMP to something else in search of better media buying solutions. If your enterprise has been buying digital marketing on a significant scale, then DMP is probably being used already, albeit an external emergency or even your media team is keeping it a secret. Perhaps this is the time your customer experience strategy finally makes use of this powerful tool.
Traditional use cases
The DMP is playing a much wider range of roles beyond just its conventional media activation functions. Here’s how:
CIOs, CMOs, and CDOs know the importance of accuracy in understanding customer behavior and activity in marketing, customer service, product development, and research. The DMP’s unparalleled ability to collect a wide spectrum of data and match identities from interactions and devices helps accelerate initiatives meant to develop internal customer and potential customer data assets.
In a nutshell, DMPs bring the following benefits to digital marketing strategies:
Improve your knowledge of the people you are serving – DMPs provide audience insights which are arguably the best way to learn about your audience and the exact drive behind their interest in your product.
Boost conversion rates – DMPs may improve click-through-rates by generating consumer journey insights, further attracting more users and increasing conversions.
Facilitate content personalization – DMPs create segments which are useful in the personalization of your site’s users’ experience by indicating content they are most interested in.
Single-customer view – They provide a consistent representation of buyer data obtained from different touchpoints.
Increase the reach – With the help of a DMP tool, marketers are able to analyze pre-defined customers and use the information to identify new potentials with the same activity as the seed audience.