The biggest new trend in digital marketing for 2016 in the Data Management Platform (DMP). It’s not new, but it has finally become an object of consideration as advertisers hope to reverse the trend toward blocking unwanted ads. One of the remedies for this would be to make the ads more “wanted,” or better tolerated, and better data is seen as the way to accomplish this.
The DMP aggregates information from across all the marketers’ channels and helps to make more granularly targeted online advertising more possible. The hope for this new tool is that it will lead to fewer and better ads with higher ROI.
From a sell-side perspective a data management platform might be very valuable to collect and monetize data from web properties. A publisher could decide to sell this data (to end clients or to data providers) or think about a more sophisticated approach where the data is used to enrich available inventory and sell a package to clients that consists of both media and data. This is of growing importance as more and more publishers get their traffic from Facebook and other referral traffic that isn’t Google. The aggregated audience data from the publishers should then match up better with the cross-channel customer data from the brand’s own DMP.
From the ad buyer’s perspective, consolidating data from multiple sources (e.g. a DSP, data provider or custom data source) allows an agency to make better media buys. For example, in an advertising campaign for a retail advertiser, an agency or brand manager can collect relevant on-site data by adding segment and conversion pixels to the advertiser’s website and store this information in a data management platform. Then data from a data provider that provides demographic or contextual data can help build more detailed audiences. Based on the campaign results, you create an audience with website visitors that actually made a purchase. You can then use this new audience for another ad campaign. That’s very valuable, but still pretty basic for most of the DMPs.
At the next, more sophisticated level, media buyers can use the data to model similar audiences based on user characteristics in the original audience and find other users in their DMPs who will match these characteristics. Ultimately these actions should lead to an increase in advertising effectiveness and the DMP can be a vital element to realize this.