Regardless of the product or service, when it’s time to sell, it comes down to one thing: data. It is imperative to know who you are selling to, how they behave, and why they need your product or service. The best way to get to know your audience is through segmenting them into groups based on actual data.
Segmentation is the easy part, while collecting and managing the data is more challenging, and can be time-consuming or costly. Thankfully, there is a way to both streamline and combine this process into one software solution, the data management platform (DMP). The SaaS-based platform operates as your data collection tool across your own network, giving you the keys to unlock your target audiences, and then advertise to them directly.
With that being said, here are 5 reasons that you need a data management platform:
At first glance, it is understandable that a DMP would seem like any other database. It stores and analyzes data about audience segments, advertising buys, and publisher information. However, this platform is a tremendous asset to marketers, as it also tracks cookie IDs and integrates advertising campaign information. The data collected can be used to generate audiences of consumers who have already interacted with previous ad campaigns, setting you up for success right out of the gate.
Having the ability to aggregate both first-party and third-party data from multiple marketing channels is like hitting a gold mine for digital marketers. Audience creation can be even more refined, so your email and social media campaigns will soar. Also, the content you produce will have the correct messaging, making it easier to automate your marketing. By catering your messaging to different audiences, you can not only increase engagement with your campaigns but also get better visibility into what sort of message works for each target audience.
Now that your audiences have been created based on their online usage behaviors, you have the formula for successful ad campaigns. Your first-party data gives you insights regarding who your target audience is. To take it one step further, you can layer on third-party data, allowing you to see what your audience is doing off your sites. The data management platform gives you the ammo you need to serve ads with the right messaging to the right people.
A DMP is very helpful with programmatic ad buying because it communicates directly with the DSP (the software used to execute programmatic ad buys). The audience data is sent to the DSP and then it sends ad performance back to the DMP. The DMP then analyzes the results and alerts the DSP of which audiences are performing best. Once the DSP has that information it can adjust campaign bidding and targeting for optimization. This technology allows for you to make the most of your advertising dollars while getting an even more thorough understanding of your audiences.
The third-party data that was mentioned earlier comes from data vendors that sync up cookies from different locations around the web. The data management platform does the heavy lifting and equips you with the ability to select the correct group of anonymous cookies to buy ads against. Using a DMP will always keep you one step ahead because it can analyze the audience and adjust them automatically to increase campaign performance.
These are only a handful of the many reasons why you need a data management platform. In reality, there are so many more benefits. Learn more about how DMPs can bring more value to your data in our Whitepaper: Data Management Platforms.