Published on October 16th, 2018 | by Sunit Nandi0
How Does a Data Management Platform Work?
Gone are the days when data was hard to obtain. These days, information is available at our fingertips with only a few keystrokes. However, the difficulty involved in this is segregating the useful bits and using them to your advantage. A Data Management Platform will help you in this endeavor. Do not be intimidated if you do not know what this is. Let this article serve as your guide to the intricacies of this useful innovation that can change the way you run your business.
What is it?
Before we dive into the benefits of Data Management Platform, let us first discuss what exactly it is. More commonly known as DMP, it is the digital backbone of data-driven marketing that collects, actives, and organizes audience data. It is difficult to use raw information on its own and DMP basically converts it into a usable resource.
What does it do?
A DMP organizes and collects data from various data sources before making it available to other platforms. Marketers can use the results for customization, personalization, and targeted marketing. It can be considered as the pipework of advertising technology. It connects platforms in a neutral manner for business owners and marketers to use as they wish.
Overall, it has three basic functions:
1. Collect data
The DMP imports structured information from various internal and external systems. It also organizes the collated data at the individual level to make it more usable.
2. Find groups
The DMP then targets groups or ‘segments’ that share certain attributes as per the user’s instructions. It can typically access synch up cookies, data vendors, and other IDS. This will help you determine and target the proper audience.
3. Send instructions
Lastly, the DMP alerts websites, ad networks, and other platforms regarding the target. It also instructs these places the message to send to these users on whatever device or channel you want.
How can it be used to build an audience?
After you are finished collecting and organizing data, it is time to utilize this information. Every marketing campaign needs to specify a target audience from the very beginning. Of course, it is also possible to launch one without it, though this paves the way for failure. With DMPs, marketers can build an audience based on reliable data about user behavior on the Internet.
Here are some data points we recommend in order to build your client base:
- Browsing history
- Social networks
- Household income
- Family size
In all likelihood, you already have access to a goldmine of data. However, collecting and storing data will be useless if you do not use it. A DMP will basically serve to bridge the gap between a marketer and the customers. It allows businesses to reach the right targets at the right time on the right device. If you know how to use it to your benefit, it will ensure the success of your marketing efforts without a doubt.