Explainer: The DMP


What It Is: A data management platform (DMP) manages data flows between consumers and brands, brands and agencies to examine first-party data and compare it to data collected by third parties. This data might be drawn from a myriad of sources, ranging from social media to surveys. All of that data is posted for review on a single platform that allows decision-makers to build more efficient marketing strategy and optimize ad spend.

Why It Matters: First-party data, coupled with third-party data allows CMO’s to create audience segments based on the numbers, not digital agency fads. That data, when accessible and easy to employ in real-time for ad spends, allows campaigns and creative to collaborate effectively to maximize investments and produce dynamic consumer snapshots. That’s important for large businesses that need a complete data portrait, not just selected metrics from an ad exchange.
Who Uses It: Major brands, and even mid-range business, have to use some iteration of a DMP to have analytics data that’s actionable. While many demand-side platforms (DSPs) offer metrics and audience segmentation automation, true DMPs integrate data from multiple sources, providing a complete suite of tools necessary to manage campaigns, data analysis, short and long-range media buying plans. Well-known DMPs include BlueKai, Exelate’s DataLinx and Lotame.
Assessment: A DMP may not be the solution for smaller companies, but major brands need to utilize all available data to build strategy. Having that data at hand in a shareable format that allows reactions to first and third party performance metrics in real-time is essential. DMPs may sound a lot like DSPs, but a classic DMP provides all actionable data relevant to a brand in a format that can be interpreted, shared and employed with ease. DMPs give brands control over their analytics, allowing decision-makers to get down to the business of making money.

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