Contributed by Melissa Hefner, Director, Account Strategy, North Central Region at Goodway Group
WHAT IS A DMP?
A Data Management Platform (DMP) is a technology that aggregates, houses, sorts, analyzes, and finds connections between massive amounts of online, offline, first-party, second-party, and third-party data fed to it.
WHY USE A DMP?
A DMP makes data accessible and actionable. It can create fuller customer profiles by centralizing data sets that otherwise would be siloed. Then by linking into a DSP, the knowledge from the connected data in the DMP can be activated. This can boost advertising ROI by more accurately targeting the right person with the right message.
HOW IS A DMP USED IN PROGRAMMATIC?
- Segments customer attributes for more accurate targeting
- Builds look-alike segments for prospecting new customers
- Expands campaign reach by linking first-party data to second- and third-party data
- Delivers hypertargeted messaging to each segment
- Unlocks purchase-behavior insights
HOW A DMP WORKS
Data Collection Data is imported from as many customer data streams as a company has available. Then the DMP organizes each piece of user data and puts it into categories to build individual user profiles. Data Management Once the data is imported and sorted, it can provide great insights about how to segment audiences and determine what targeted messages they should receive. Ad buyers can tell the DMP who they are trying to find by asking it to reach audiences with certain attributes based on the user profiles from step one above, the data-collection phase. Data Activation The DMP is synced up to a DSP. Then the DMP sends real-time instructions about what ads to buy. If ad space is bought, it will decide what message should be served, based on the user profile. Optimization After an ad is bought and served, the result is measured. Those results become more data the DMP will learn from and store. The instructions the DMP is feeding the DSP can be optimized. And the process starts again. An integral part of Goodway Group’s sales-enablement team, Melissa delivers thorough pre-sales research and clever strategy to make clients heroes every day. Drawing from her extensive experience working with full-service agencies in the media world, she truly enjoys helping clients navigate the ever-evolving landscape of digital media, search marketing, and performance analytics.