Why Is Everyone Talking About Data Management Platform Today?

The digital transformation has already arrived and is undoubtedly going to expand. In fact, it is only a matter of time until most of the systems and processes will go completely digital. Hence, now the question arises that who can do it for them? Who else than a customer data management platform! A data management platform is a technology that is vital in the digital marketing strategy.

Data management platform

As a marketer, you quite often face difficulties in utilizing the data.

Just gathering information is not enough now, the data needs to be quantified and integrated into your existing plans.

A DMP has an answer to everything, due to its ability to collect and segment data into pools to make incisive strategic decisions.

Being a marketer you should start looking at consumers through the digital lens.

Understand their needs and behaviour to improve consumer perceptions of advertising and incentivize consumer investment in a brand relationship.

Thus, whether you are ready for the transformation or not, you must revamp your strategies and accept the change.

Investing in a data management platform that supports digital maturity is something you cannot afford to miss, whatever be your enterprise.

So, first things first, I will explain why DMPs have become so popular, how they help organizations, and also their significant benefits.

But, let us first understand the background of a data management platform.

What is the Data Management Platform and how does it function?

A Data Management Platform (DMP) is a marketing software that collects and manages large chunks of all different types of data.

It is a type of centralized tech platform whose process starts with collecting data and segmenting it into categories.

These segments comprise demographic data, age, gender, past browsing behavior, location, device, and more.

Further, insights and audience profile reports are generated to arrive at a conclusion and achieve specific objectives of a marketing campaign.

The information DMP uses is gathered from the users’ online and offline data.

The examples of data sources used are:

a. Desktop and mobile user data.

b. CRM systems.

c. Point of Sale.

d. Social platforms usage or trends.

e. Web analytics.

It also uses third-party data sources to ensure that the information is the most accurate and useful for the user.

The primary idea behind a data management platform is that businesses can take advantage of these diverse forms of information that is coming from a variety of sources.

Data management companies can collect that information in one central place to attain the business intelligence that genuinely benefits the enterprise.

There are mainly two types of DMPs:-

1. Open DMPs – if you opt for open DMP, the access to the data is more open for third-party agencies. This could mean that advertisers are directly operating the open platform for you. Data collected with open DMPs are often related to website information, demographic and audience data, and other advertising related data.

2. Private DMPs – both private DMPs can work together with open DMPs. However, private DMPs can also be used as a standalone platform. Its primary function is to gather data, that aggregates the proprietary of marketing data. Information on client purchases and user profiles are the data that can be collected from here.

Who needs to use a DMP?

Ideally, agencies and marketers need to use a DMP today.

See if you can integrate it into your marketing stack.

It is not a bad idea for improving your business strategies, as organizing data this way, you give you an understanding of the audience.

And this is what will make your marketing tactics more efficient.

Now, at this point, you might be doubtful whether your organization should be using a data management platform or not.

You need not worry, I have compiled some business objectives, which if matches to your desires you would require to use a data management platform.

1. Want to manage multiple online campaigns across different ad networks.

2. To enhance scalability, niche-targeting, and messaging capabilities.

3. If you’re going to automate marketing activities for prospecting, lead generation, or demand generation.

3. If you want to jolt all data from the sales team, retail with marketing data.

4. You need to control your advertising costs and improve overall ROI.

The most common uses of DMP is media buying, content optimization of websites, and ad targetting.

Once you realize the value of implementing a DMP, the next step is preparing yourself for the process of making it happen.

Benefits of Data Management Platform

DMP’s have transformed the way companies used to gather and use information.

Today there has been an evolution of unique DMPs, with different functions to help provide benefits for companies.

However, the most crucial part is picking the right platform from the crowd.

There are a handful of data management companies and providers out there, so carefully research what they offer and how those services and products can support your business.

Let us see the overwhelming amount of benefits that a DMP can deliver to marketers.

1. Dmp ensures that you get access to the data and recommendations through the omnichannel marketing technique. It enables you to know your audience better as it offers 360-degree behavioral analysis using data visualization tools. Studying the behavior and preference of the target audience gives you a more profound insight into efficient targeting.

2. DMPs are also useful for their flexibility. You can use an enormous amount of data judiciously in many ways. To meet different aspects of business operations, try engineering the information accordingly.

3. You can continuously adjust your advertising and content across each channel to improve customer experience and marketing performance.

4. A data management platform, enhances the planning processes for agencies, allowing them to focus their efforts on their client’s most valuable customers. The more data points you include to your platform the more accurate and usable your information will become for a good conversion.

5. Since dmp uses third-party data, personalized content gets delivered to customer profiles when they visit the brand’s site. It can effectively serve relevant experience to both new and returning visitors and transform them into loyal customers. Thus, maximizing customer lifetime value.

6. With insights that you get from the statistics, you can get a fair idea about how to increase conversion rates. Additionally, this will also help you improve user experience, and establish the brand.

DMP and Adtech

Since data gets consistently altered into a brand’s DMP, so the data keeps on updating continuously.

This means that the information that is fed into the system is always developing.

When customers will return, the data generated from this action will continue to develop dynamically so a brand will never start from square one again.

The use of DMPs is becoming more and more popular in the market.

Businesses should take note of how DMPs play a vital role in improving results and enhancing digital presence in this harsh online climate.

Because data stored within a DMP is anonymous, the DMP can be helpful for online DMP advertising.

It doesn’t necessarily need to know who you are to serve up an online ad based on your previous web surfing history.

While it’s true that marketers can link plenty of first, second, and third-party data to cookies housed in a DMP.


All the data that companies collect is a reflection of people: their behaviors, preferences, needs, concerns, and likes.

Investing in a better understanding of this data means improving the relationship between customer and brand.

A data management platform can help companies make sense of data and then use it meaningfully.

At the moment, dmp is one of the most effective ways of delivering quality advertising content to the target audience.

However, it is an entity that you should handle with care.

If done right, dmp can significantly help in keeping the pulse on the proceedings of the marketing campaigns.

So, if you are thinking to start using a data management platform for your brand, begin soon.

Also, share with us your opinion about using a dmp and how you are getting benefited out of it.

Sreejani Bandopadhyay

Sreejani is a biotechnologist by education. She prioritizes in pushing her limits in the online era with her remarkable rationality. An ardent disciple of contemplation and believer of efficacy while writing. Presently she is tweaking her grey cells emphasizing in content marketing and is eventually mutating into a digital nomad. Is enthusiastic about traveling, as nature gives her positive stimuli.

One Comment

  1. Surender Singh-Reply
    November 22, 2018 at 7:03 pm

    Great article

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