As a company grows, the tasks of planning, managing and developing marketing campaigns become more complicated. In this sense, having a DMP (Data Management Platform) helps companies with the management of their data, making it easier for brands to know who their current and potential customers are and helping them to find the best way to impact them.
However, the Internet landscape is changing and anticipating the announced disappearance of the famous cookies, the CDP (Customer Data Platform) could be an alternative for the future. Did you know about the existence of DMPs and CDPs? If you are interested in knowing more about them, don't miss this post.
Data Management Platform, what is it for?
All the strategies that are generated around your business are based on data, hence its importance. As your business advances, the amount of data collected will grow and its management will be increasingly complicated. For this reason, perhaps a Data Management Platform can help you.
A DMP is a platform whose function is to manage audience data. It is dedicated to processing various data so that it can be organised into different profiles in order to segment audiences. In addition, the most important function of these platforms is to process this data through algorithms and return information based on it. This information is very useful for decision making within a company.
Its operation is based on collecting data from various sources (whether internal or external) and storing them in an orderly manner, under preconfigured criteria.
DMPs collect three types of data: (Source: Making Science)
> First Party Cookies: data belonging to the company, which obtains it through its website, social networks, etc.
> Second Party Cookies: first party cookies from other companies, obtained through collaborations or agreements.
> Third Party Cookies: data from third parties, essential to obtain more complete and detailed information on audience habits.
DMPs integrate and centralise these three types of data, which come from different channels and provide a more global vision of users. From them, it is able to select the most relevant data, classify and segment them by categories (age, interests, geography, behaviour...) and activate them for its different advertising partners.
It is very common for companies to use a DMP for their online marketing and advertising strategies. This type of platform improves the results of brands and serves as a complement to Inbound Marketing strategies . Its use allows the storage of large amounts of data, which helps to better understand customers, improving the effectiveness of advertising and marketing campaigns.
It is important, however, to take into account some aspects before starting to use one of these platforms, because users who give data to a company cannot control what that company does with it. For example, they can use it to send us advertising.
In this sense, it is essential that, if we want to use our DMP to send advertising in a programmed manner, we make sure that we have informed the owners of the information of how we obtain the data and with whom we share it .
is it a bet for the future? What is the alternative?
For businesses, the use of these data management platforms brings with it some advantages, but the Internet landscape may be shifting towards a different model in which cookies, a core element in the operation of these platforms, will no longer be as important as they are today.
This year Google announced its plan to eliminate cookies by 2022, something that could be of great concern to marketers. Cookie policy has been changing over the years and some of these changes are due to the General Data Protection Regulation, a European law of 2018 that implemented the option of choosing cookies by the user. From then on, internet users chose which cookies were stored on their computer when entering each website.
The new technology that Google seems to be preparing, called Floc, will not focus on individual data, but on the creation of groups with common interests to which a specific type of advertising will be directed. The multinational has already assured that Flocs will be 95% more effective than cookies.
Analysing the current and future scenario, a possible alternative could be the use of Customer Data Platforms (CDP). Although there are aspects to improve in them, CDP could be an interesting option that could replace DMPs. We tell you what the difference is between the two according to Inbound Marketing.
The main difference is that the CDP is based solely on the company's own data (first party cookies), which means that this data is not temporary, as was the case with DMPs. It also contains verifiable data and is therefore more accurate.
On the other hand, the data collected by CDPs are updated in real time, while in DMPs this update is carried out when the platform is updated. Customer Data Platforms guarantee a more global vision of the customer and the data handled are personal and identifiable, as opposed to the anonymous data managed by a DMP.
Regarding the future of this platform, according to ad exhanger, some of the requirements it must meet in order to continue to be useful in the coming years are:
> Master multiple IDs and have advanced analytics support
> Manage data collection, rules and updates
> Provide "secure pipelines" to publishers
Now that you know both concepts and you know what the future projections are, you can get an idea of which is the most appropriate for you and whether you need such a platform in the management of your business.
