The new hot topic in advertising is Data Management Platforms (DMPs). DMPs promise to play a significant role in the future of marketing and, among a number of other topics, were discussed at the last spring’s Advertising Week Europe Masters of Monetisation seminar in London.
So, what is a DMP? In simple terms, it is a platform that gathers and manages all your data for marketing purposes, serving as a unifying platform to collect, organise, and activate customer data from any source, including online, offline, or mobile.
Prior to the existence of DMPs, advertisers were unable to run targeted display campaigns showcasing relevant offers to individuals. They could run a vertical campaign targeted at mums, for example, but they were unable to ensure that it was only viewed by mums and not other consumer groups. Now, with DMPs, advertisers can conduct audience targeting in display ads.
Essentially, a DMP is a cookie and online ID resource which allows advertisers to reach segmented audiences instantly and enables more relevant content when running display advertising campaigns. Using DMPs, advertisers are able to communicate on a one-on-one basis with their customers. And working together with third-party data brokers, brands can combine their own offline database and the third-party data in their campaigns for better results. In other words, it’s all about customer recognition using cutting-edge technology.
Most of the DMPs in the market will aggregate offline and navigational data at a cookie level. If an average individual has around 2 devices (home PC and work laptop for example) and 2 browsers across each device, they will potentially have 4 cookies from a given DMP and be considered as different individuals across those devices. A new generation of DMPs use customer recognition tools to allocate a persistent ID to each individual and consolidate cookies at that level.The assignment of persistent IDs and the immediate association of those IDs to cookies is critical to enable marketers to recognise a customer across multiple browsers and devices and consolidate the data generated across those at a Persistent ID level. This is much more powerful than working purely at a cookie level.
Furthermore, with DMPs marketers can extend campaigns from their target groups to ‘lookalikes’ using third-party data to validate propensities to act or buy products or services.
The DMP market is still in its infancy but there is no doubt it is a growing global solution that offers a more scientific approach to the problem of identifying individuals across many platforms. Not only are an increasing number of publishers and advertisers leveraging these technologies to add data at the heart of their display buying and selling efforts, a wider range of industries such as retail and financial services are also now taking up the baton. The use of DMPs in marketing campaigns is only likely to grow.
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