So, you’ve heard about data management platforms, or DMPs”, but you don’t really understand what it is, or how it can help you? Well, if you have 90 seconds to spare, you are invited to watch this video to learn more.
Data management platforms like Lotame are powerful platforms that allow users to collect, organize, analyze, and activate data from any source. This can include first-party data (i.e. data you own) from websites, mobile web or apps, offline, CRM, and beyond. Your powerful first-party data can be combined with second-party data, which is basically another company’s first-party data that they have shared or sold with you in a direct sale. And finally, there is third-party data, which is available from a large number of data providers, including the Lotame Data Exchange (LDX) and the 40+ data partners who sell their branded 3rd party data inside Lotame’s DMP.
Once all this data is collected, it is organized into hierarchies, which can be customized to match your particular use case. For agencies, they may have different hierarchies for each of their advertiser clients. For publishers, they may have individual hierarchies for each website or publication they run. Marketers could break them down based on different product types. The possibilities are endless. But the point is the same – the data is organized into categories that make sense to you.
Now that all the data is collected and organized, you can use these segments to build “audiences”, which are your targets. You can have an “all members” audience which includes everyone you have data on. Or you can build a custom audience for a specific ad campaign – car buyers for an auto campaign or moms for a CPG ad campaign. Audiences can be as simple or complex as you want, and you can increase the size of them with that third-party data we discussed previously.
Once your audiences are built, the data management platform offers insights and analytics about each audience. So if a publisher is targeting moms for a particular campaign because they seem to be the ideal audience, the insights from the DMP on that moms audience might show that the ones who are actually most likely to click on the campaign are really interested in something like dogs or sports. The insights you gather can then be used to adjust and optimize your advertising campaign to increase performance. So if the dog lovers are the ones who click on your ads, you might want to add “dog lovers” as a segment to the audience target, leading to an increased click-through rate.
The use cases for a DMP go far beyond audience targeting – that is just DMP 101. In addition to behavioral targeting, DMPs can be used to find look-alike and act-alike audiences to increase your campaign size. More advanced users integrate their DMP with their CMS, allowing for content recommendations or ad creative personalization based on the information you have on your audiences. The possibilities are truly endless.
If you have taken a look at the video above and still have questions about what is a data management platform, feel free to contact us. We’d be happy to show you a demo or answer your questions!