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5 Reasons You Need a Data Management Platform

September 11, 2018

Why You Need a Data Management Platform

The more you know about your consumers, the better you can serve them content and advertisements that they’ll respond to. When it comes to getting to know your audience, big data is one of the most valuable resources available. For publishers, increased engagement means more eyeballs on the pages, and more opportunities to monetize the site. For marketers and agencies, it means increased engagement with marketing campaigns, and ultimately more conversions and sales.

Data can be collected into a DMP from various sources, including the actions users take on their sites, the information consumers provide them and data from third parties. If effectively organized and analyzed, this data offers insights that help them to deliver customized experiences and run more effective ad campaigns.

Data is the essential tool for determining audience characteristics and effective marketing strategies. Segmenting your potential buyers into groups based on their preferences and behaviors isn’t all that challenging on its own once you have the right information — but collecting, storing and managing that data can be quite a hurdle, not to mention that it can be time-consuming and costly without the right technology. The best software solution to eliminate these data-retrieval concerns is the data management platform (DMP).

How Does a Data Management Platform Work?

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A DMP is a unifying platform for collecting and merging data fragments about your audience from a variety of online, offline and mobile sources. Aggregating first-, second- and third-party user data from these channels within a DMP allows you to identify your audiences and refine your messaging to create more meaningful connections and run more successful ad campaigns.

Part of the value of a DMP and using it to its full potential is that it helps you attain a big-picture view of your  consumers that you wouldn’t be able to create otherwise. Perhaps you would be able to organize and analyze the first-party data from your own physical and digital properties without a comprehensive platform, but it wouldn’t be nearly as tangible to extend your reach using datasets from third-party data providers and to send the information gained to the right places for activation.

In performing these tasks, your DMP can ensure that you pull the right information and that, through translating, classifying, indexing and storing data, you’ll be able to leverage that intelligence to benefit both your audience and your company’s bottom line.

A DMP is a unifying platform

5 Reasons a Data Management Platform Is Critical for Making Use of Your Data

Ultimately, any business decision comes down to the bottom dollar. How can you attract, retain, and upsell more consumers? It’s all in how you target your audiences, and that is precisely where a DMP can come in handy.

More than just a simple data warehouse, a DMP can streamline personalization and channel integration, allowing you to reach more audiences than ever before. With a greater understanding of how a DMP works, let’s take a closer look at the five reasons that you need a data management platform by checking out exactly what they can do.

1. Act as More Than Just a Storage Facility for Data

Collecting data from your own apps, sites and other properties, along with a wide range of outside sources, such as social networks, CRMs and more, a DMP creates a holistic picture of your consumer. From screens and devices to non-digital platforms, you receive a complete view of your readers’ preferences, habits and interests by tracking cookie IDs and integrating interaction history on previous advertising campaigns. At Lotame, for example, our global data exchange (LDX) provides access to the most extensive network of high-quality cookie and mobile device information in the world.

At the core of a DMP, however, lies something much more significant than hoarding information. It does pull your data from these locations to compile them in a single database, but silo’ed data don’t accomplish much on their own without the second step of applying the data retrieved. That’s why the DMP aims higher.

Apart from simply storing the information this exchange provides, a DMP analyzes these data points, helping you create audience segments and customize them using appropriate profile attributes that reflect your past successes. For this reason alone, a DMP is an invaluable asset to publishers, marketers and agencies, setting you up for an even more substantial return in the future. Let’s take a closer look at how a DMP can help you create these audiences.

2. Take Building Audiences to a New Level

There is a substantial advantage to be found in creating audience segments by taking steps such as combining first- and third-party data, sizing up offline CRM data and comparing social network engagement with website clicks. These numerous marketing channels are a gold mine for digital advertising.

Hyper-targeted ads

By combining your first-party data with information from third parties, a DMP deepens your knowledge of your audience and helps you to refine your audience creation. Imagine if you could gather data from television, email, web and social media and combine it to create more well-defined audiences. Wouldn’t campaign success be much more attainable?

One of the key elements of marketing to remember is that people are more than numbers and facts. People, and therefore audiences, are complex and full of desires and needs, which is what the data you collect should help you pinpoint. Using a collection of attributes to establish target audience segments can help you create the content that will provide your viewers with the information they need to make purchasing decisions.
With a DMP, you can also build lookalike audiences — groups of users who are similar to your target audience. Using lookalikes increases the scale of your data, which can help you win more requests for proposals for bigger ad campaigns as well as improve campaign performance.

Collect the right data and set the right goals for your marketing, and you’ll be on the surefire path to success in using your DMP.

3. Enable You to Precisely Target Ads and Personalize Content

After creating your audiences based on their browsing and purchasing behaviors, you have the necessary information to run lucrative ad campaigns and increase success across your digital properties. Your first-party data shows you who is receiving and responding to your advertisements over and over again, and you can use this information to be precise, personalized and persistent in your sequential campaigns.

Additionally, thanks to third-party data, you can receive insights into your audience’s habits when they leave your website. The timing of their leaving is also important, as you’ll be able to see what content holds their interest and what messages grab their attention best, enabling you to improve their experience when they return to your site.

Because it enables you to understand your customers and predict their behaviors better, a DMP helps improve the efficiency of your campaigns. It also allows you to deliver content to consumers that matches their interests and reorganize your platforms to suit your viewers’ preferences and habits. This strategy encourages users to stay on your site longer and return sooner. Data is a valuable tool for many areas of business, and having the right system for analyzing and applying the information you gather is, once again, essential.

4. Work in Collaboration With Other AdTech and MarTech Platforms

Lotame’s DMP is 100% media agnostic, and the data in your DMP is extremely portable. You can export it via integrations with various demand-side platforms (DSPs), verification platforms, measurement tools and more. You can also import data from anywhere, including your CRM, data exchanges, mobile apps and even offline sources. This process helps you to make your data more robust and complete.

These integrations also allow you to take advantage of the extended audiences you’ve created through lookalike modeling and other tactics. You can target these extended audiences using a DSP to bid on ads, increase their revenue and improve results for their advertisers. For more information on the difference between a DSP and a DMP, check this article out.

DMPs can communicate directly with DSPs to perform programmatic and strategic ad buys. The two programs’ “conversation” goes something like this:

  1. The DMP sends audience data to the DSP for ad targeting, the software that executes the ad buy.
  2. The DSP, in turn, delivers ad performance information to the DMP on a continual basis for follow-up analysis.
  3. These results are analyzed by the DMP, taking audience intelligence into account.
  4. The DMP alerts the DSP of the audiences who are performing most favorably and which messages are being communicated most effectively.
  5. The DSP adjusts its bidding and audience targeting for campaign optimization.

The collaboration of these technologies enables you to use the thorough understanding of your audiences to improve your ad campaigns and boost the revenue you get from advertisers.

5. Pave the Road to Discovering New Consumers Through Data-Influenced Advertising Campaigns

A DMP can also be a powerful tool for finding and acquiring new consumers or subscribers. To accomplish this goal, you can use the DMP to profile your current audience, and then create lookalike profiles of people with similar characteristics. You can then use your data to create campaigns that target these lookalikes to bring them back to your sites.

With data-bolstered and audience-focused online advertising plans, you can expand your brand to new audiences, which will help increase your bottom line.

What Are the Benefits of Having a Data Management Platform in Your Toolbelt?

Benefits of Having a DMP

There is no doubt that you would be on the road to a massive opportunity for success with a DMP on your side to manage and optimize your data. Here are a few of our favorite benefits that publishers can reap by implementing a DMP, although there are many other benefits to be found that you won’t want to miss.

  • Increased revenue: Ads that accurately target audiences are one of the most effective ways to  grow your consumers and increase brand loyalty
  • Omnichannel consumer understanding: Streamline your collection of data with the power of a DMP and gain that 360-degree view of your reader’s world. You’ll be able to tuck this information away in a single location for easy access, and pretty soon you’ll find that you can make better-informed decisions across all departments within your organization thanks to a more profound knowledge regarding your audiences.
  • Cross-platform campaign optimization: You will erode barriers between one device or screen and another, giving you limitless reach and a cohesive message that solidifies your brand experience. Not only will you learn about viewer behaviors across all platforms, but your consumer will see you in a uniform light, no matter where they look at your content.
  • Multiplied reach and customer addition: DMP data opens doors that you may have never even known existed, extending your reach and pulling in the attention of new audiences day in and day out. You may find that over time, these new subscribers are the best ones you’ve ever had!
  • Never-ending progress: Continuous learning is an attribute of highly successful businesses and individuals. Never stop gaining knowledge about your market, your audiences and successful campaigns in your industry thanks to the DMP workflow and long-term consistency, giving you the ability to grow and progress toward your long-term goals.

Improve the success of your campaigns, attract and retain more customers, boost your bottom line and more with a DMP that can support your business needs. Together, people and technology can achieve groundbreaking things, and, at Lotame, we like to be along for the ride as you harness the power of well-managed data to build strong connections to your customers and find success.

Learn More About How a Data Management Platform Can Boost the Value of Your Digital Properties

Increase the value of your site for your brand, your readers and your advertisers by collecting in-depth intelligence on the market and building one-to-one connections with your target audiences and advertisers with the best DMP solutions in the industry. At Lotame, we are excited to guide you through the initial phase of your DMP journey and beyond.

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