Article

Sneha Bangera
Sneha Bangera 19 October 2016

Why Data Management Platforms Have Become A Necessity

Here are the top 5 reasons why Data Management Platforms have become a ‘must have’ technology for marketers.

Personalized Marketing has become an important marketing strategy for organizations. As per a recent survey, 86% of consumers say that personalization plays a major role in their purchase decisions. 94% of the marketers agree that personalization is important for meeting their current marketing objectives.

But what is holding the marketers back? Legacy technology which is not suited for the digital transformation era, a CRM only approach which provides an incomplete view of individual customers, not having the right resources are some of the challenges faced by the marketers.

A robust data management platform (DMP), which pulls data from disparate first, second, and third party data sources and allows organizations to define specific audience segments to which they can provide distinct marketing experiences, is the key to overcome such challenges. Here are few reasons why DMP has become a must have technology for marketers:

1. It helps in collecting data from various sources

The customer data collected by the organization which is stored in CRM systems is often not enough to get a complete view of an individual customer.

Second party data such as past purchases, credit card usage, travel information etc. can be provided by the organization’s partners.

Third party data like job details, household income, lifestyle details etc. can be obtained from Data providers like Bizo, Exelate or Acxiom.

Along with CRM data, DMP can ingest second party and third party data to gain a complete 360 degree view of the customer.

2. It helps in merging data fragments and link them to individual customer profile

Nowadays organizations possess a huge quantity of data. However, the main challenge is that the Big data is stored in different systems or databases. This results in the creation of multiple sets of audience data which are not linked to each other. Each of these systems has their own channel for reaching the audiences. Each channel sends out different communication to the customers leading to a disjointed user experience.

DMPs look for common attributes like customer ID or anonymized IDs in different data sources and link them to single customer profile. Hence, DMPs aid in providing a uniform user experience across channels.

3. It helps you in identifying high value audience segments

Targeting high value audience segment has more chances of achieving higher conversion rates. Hence, identifying such segments is crucial for marketers to achieve their conversion goals.

DMPs are capable of identifying high value audience segments on the basis of purchase history, shopping patterns, credit card usage, the point of sales data, house hold income, job details etc.

4. It helps in sending audience segment data directly to demand side platforms

Audience segment data plays a crucial role in programmatic ad buying. Demand- side platforms (DSPs) need relevant audience data in order to bid the right amount for ad impressions on Publisher’s website.

DMPs can communicate directly with DSPs. DMPs can provide information regarding which audience segments are performing better to the DSPs.

5. It provides audience segment performance report

If targeting a specific segment of the audience is not yielding minimum rate of conversion then it leads to wasted ad spend. Hence, it is very important to find out which audience segments are not performing well.

DMPs provide reports showing the performance of each audience segment. Using these reports marketers can alter their campaign strategies by focusing more on high performing segments.

Audience segments play an important role in the marketing and advertising eco systems. For driving conversion, targeting the right audience at the right time is very crucial. DMP can hence be called as the heart of the marketing hub in this exciting era of digital transformation.

Original Article

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
Customer Journey Mapping: A Real-Life Approach to Your Digital Marketing Strategy

Customer Journey Mapping: A Real-Life Approach to Your Digital Marketing Strategy

As financial services and insurance (FSI) companies strive to deliver the seamless multi-channel customer experience, the traditional marketing model has been radically reimagined. Innovative institutions are showing how cross-functional teams focusing on the customer journey can work to develop a single view of the customer – an approach that can bring tangible rewards. Yet research shows that large institutions still have some way to go in maximising the return on their investment in this area.

Aoife McIlraith
Aoife McIlraith 18 September 2017
Read more
Infographic - The Best Times and Days to Post to Social Media

Infographic - The Best Times and Days to Post to Social Media

With the social media landscape changing literally every single day, it's become a full-time job for social media managers to merely stay up-to-date on emerging and shifting trends and best practices. It's tedious, time-consuming, detail-oriented, and, quite frankly, a bit of a headache. But thanks to this new infographic, some guessing can be taken out of social media management.

Will Price
Will Price 21 September 2017
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
10 Marketing Lessons From Apple [Infographic]

10 Marketing Lessons From Apple [Infographic]

The 10-year-old kid, selling ice cold fresh lemonade on the street corner in your local neighbourhood had it right. He or she may not have realized it but the simple marketing strategy that they accidentally and innocently came up with works perfectly on the people strolling by on their daily walk.

Ellie Summers
Ellie Summers 19 September 2017
Read more