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Customer Data Platform vs Data Management Platform: Why You Need Both

CDP vs. DMP — which is better? It’s a question that everyone is asking in the industry these days. But as Shiv Gupta, Managing Partner of U of Digital, shares with Venture Beat, these two technologies don’t have to compete with each other. What if they joined the same team? After all, it takes multiple star contributors to make a winning team, not just one key player.

“The truth is, most of the time we’re not dealing with a zero-sum game. Often two similar services are better off joining forces rather than competing,” Gupta writes.

“CDPs can draw data from DMPs and share information back with them. The two systems work together to enrich customer profiles. By integrating a DMP with a CDP, a digital marketer can access first-party data to see what customers are doing outside of their interactions with a brand and find out what they want in micro moments.

In short: CDPs are inherently about customers. DMPs are about audiences. CDPs are about harnessing the power of known, user-level information, DMPs are about harnessing the power of unknown, anonymized information.”

cdp vs dmp

Read more about the strengths of CDPs and DMPs — and their combined power — in the full piece from Venture Beat here