What is a DMP?
What is a DMP?
First of all, “DMP” is the abbreviation for data management platform. In conclusion this means whenever you need to handle a lot of data you need a system to manage the respective information – the idea aka. concept of a DMP is born.
DMP´s are used within the digital marketing industry to build actionable target groups at scale for diverse purposes. Purposes can be the personalization to follow and support the customer journey, campaign optimization by ingesting back channel information or even audience extension to find valuable users outside your scope based on 3rd-party data.
- Keep in mind: A DMP is the brain of digital marketing.
What are the core functions of a DMP?
Every DMP whether it is The ADEX Data Management Platform or any other system in the market need to stick to the following functions:
- Define & Collect
- Enrich & Organize
- Segment & Extend
- Start again from the top.
Learn more about “The 6 core functions of a DMP” [insert link] in our infographic.
- Keep in mind: The number of core functions might differ depending on which data management platform you use but I will always be a cycle.
What are the players in the market and their capabilities?
As we want to give you an objective overview about all the players and competitors in the market, we refer to an independent table by Stan Braakman, Management Analyst at BearingPoint. His evaluation includes the following business capabilities:
- Data collection: A DMP needs to be able to unify and centralize 1st & 3rd party data from various on- and offline sources to give an overall overview.
- 3rd party data: A DMP needs to be able to implement 3rd party data since it is necessary for segment building and targeting purposes.
- Customer Segmentation: This is a core function of a data management platform, therefore needs to be available in every system.
- Personalization: This is an additional capability which allows the delivery of customized experiences e.g. on different online channels. Often this feature is handled by another player in the digital eco system.
- Real-time data: Nowadays this should be a common feature within every DMP. In times of programmatic advertising data needs to be on point.
- Analyzing possibilities: As we just learned, analyzation is a core function within data management and should be available in every system.
- Advertisement focused: This depends on the respective platform you choose.
- Look-a-like analysis: In times of GDPR it is more important than ever to expand your audience and extend your reach since the “amount of consents” is limited.
Based on the specific capabilities, we just explained, every relevant competitor has been evaluated by Braakman according to their compliance (see table as followed).
In 50 words
A data management platform (DMP) is the brain of digital marketing which offers a general set of features like data collection, data processing and data activation to analyze and optimize digital campaigns. There are several capabilities every player in the market need to provide. Additional functions can differ a lot.