Most people wish to target their campaigns to boost response and conversion rates in a more timely and productive manner, they also want to control their cost of advertising while improving their overall ROI. But the solution to all these wishes such as targeting a niche audience but at a large scale is Data Management Platform.
Data management platform also known as DMP helps advertisers and agencies to have control of their first party and campaign data. Some companies claim to be a DMP, but a true data management platform provides marketers with centralized control of all their audience data. Also helping them to manage and analyze it to craft, target, and optimize campaigns that will only go to the right audience and drive improved ROI. The fundamental functionality of a DMP is using it to collect, organize and analyze your first-party data. These data are further used to target those customers across the web.
If you are an advertiser or agency thinking of adopting the data management platform, there are certain factors to consider. These factors contain both basic and advanced functionality. So, before starting, it is very important to have some internal dialogue about your company’s data strategy, and also picture what you plan or hope to achieve with it. After you figure out this part, next is to figure out the key feature of a DMP platform and how a DMP can help you achieve your campaign goals.
First-Party Data Collection and Organization
The major function of a first party data is to collect, organize and manage your first-party data. These are all managed in one centralized place. This is better than having your campaign, CRM, web social and mobile data living in different units. A DMP collects it all in one platform and then grant insight about them. Further, your data is organized into audiences which the DMP analyzes, and then provides insight about them. Insights such as; who are your valued customers? What are their habits? What else interests them?
Sometimes we end up not having much of the first party data or we need more insight on what our customers like, DMP helps companies to compare their first-party data to third-party audience data. When you understand how your first party data compares to the third party data, clients can, therefore, make smarter media buying and campaign planning decision to enable them to reach future KPI goals.
DMPs are crucial for connecting advertisers first and third party data, but there is still the second data.
A data management platform helps in sending the right messages to the right kind of people that want to see them. Marketers who are looking forward to having an increased engagement with consumers, or spend the lesser budget on advertising, and finally increase conversion rates, should employ the use of a DMP to achieve these goals and yielding a better marketing ROI.