Data management has gone digital and it may be time to try and keep up. DMP stands for Data Management Platform. We are going to explain what this means, what it is used for and why it is likely that you might need it in your business.
What Is It?
A DMP is a platform we use for collecting, storing, sharing, and managing data. It collects data from all of your data points that are connected to your customer. This can be done online, offline, or through a third party. After that, we create an audience. Then, we push our campaign onto the audience, which allows us to see how it reacts and we can make lookalike audiences that are the best image of your repeat customers. We use this image to follow how our marketing strategies work in real-time, which gives us a chance to come up with changes on the fly. At last, we have response data and see how we can improve on our campaigns and learn from past mistakes to achieve better results.
The term DMP is a pretty broad one, depending on whether you are a small company or one that deals with the global audience. Because of this, some platforms may use AI to come up with results and strategies and some may even be capable of processing the Big Data. This means that DMPs can help big corporations as well as the little guy.
What Does It Use to Collect the Data?
The data comes from many sources. Simply saying that there are online, offline, and third party sources of data does not sound very specific, does it? So, the way the DMP gathers data comes from mobile web and apps, social networks, and web analytics tools, among other things.
Sometimes, the direct approach is the best, which is why some systems prefer to incorporate findings from CRM, or customer relationship management, and surveys. However, there are times when customers are somewhat reluctant to give any feedback on products and services, which is why other sources of information are necessary.
What Data Is Collected?
The type of data that gets collected from your customers and clients is related to their age, interests, local region, opinions, and income. Sometimes, there is even browser history involved, but don’t worry, it’s nothing more serious than cookies most of the time.
This is because you would need to create a target audience for your product or service. Let’s say you sell sporting equipment. You would not use the same marketing campaign for young people in California as you would for the retirement communities in Florida. This data is collected to see what type of people are interested in what you have to offer and to plan your marketing strategy accordingly.
Why Use It?
There are several reasons. First of all, depending on the scope of your business, as well as whether you plan on going big, the way of gathering and processing data can be too irksome or even impossible to do on your own. Secondly, as we’ve said before, you can plan your marketing campaigns more effectively. Thirdly, even with the best laid out plans, something can go wrong. DMPs can help you avoid problems like data loss and data theft.
The good news is that you don’t have to radically change your strategy after implementing a DMP into your business practice, as it takes some time to collect the data and deduce something from it. However, the platform will help you understand better which marketing ideas work and which would not be well-received by your audience.