What is a data management platform?

Introduction

A data management platform (DMP) is a software as a service (SaaS) platform designed to collect, organise and help “activate” anonymous data (using data from online, offline and mobile sources), to be used for personalisation in marketing and advertising campaigns. 

Which applications, platforms and data technologies do you really need in your MarTech stack today? With so many solutions (and endless acronyms!) in the data-driven marketing landscape, it can be hard to know where to begin. 

Let’s start by outlining the most data-driven marketers’ goal: unlocking the right data ecosystem and technologies to collate, manage and activate data to give insight into creating personalised, omnichannel campaigns and great customer experiences. 

But from DMPs to customer data platforms (CDPs), to marketing analytics environments – there are a lot of different applications to understand. And, not every tool is relevant to every use case – a DMP or  CDP may not always be the right fit for your goals. 

So let’s explore exactly what a DMP is – and key considerations to help evaluate if it’s the right tech solution for your data-driven needs. 

What is a data management platform?

At a high level, we describe a DMP as: 

 “A SaaS platform that collects, organises and facilitates the ‘activation’ of ‘anonymous’ data for personalisation and marketing and advertising campaigns using data from online, offline and mobile sources.” 

As such, the services that a DMP typically offers can be split across three main areas: 

Ingest / Collate

A DMP helps collect and consolidate disparate first-, second- and third-party data from across devices and channels and anonymise it. 

Activate

Data Management Platforms (DMPs) don’t just organise data—they activate it. Using Boolean logic, a DMP helps build audience segments that enable marketers to reach current and potential customers across Demand-Side Platforms (DSPs), Dynamic Creative Optimisation (DCO) tools, Supply-Side Platforms (SSPs), search, social channels, and more.

In this sense, a DMP serves as a central platform that brings together online and offline customer data, storing it in one organised place for use in personalisation, advertising, and segmentation.

Sounds simple, right?
However, a DMP is not a one-size-fits-all solution. It’s important that data-driven marketers understand when and where a DMP can deliver value before making an investment.

To realise its full potential and drive return, a DMP must be thoroughly evaluated, correctly implemented across the business, continually optimised, and—crucially—supported by the right data foundation.

Illuminate / Organise

Once the right data is in the platform, DMPs help organise that data into a taxonomy of characteristics to make sense of varied user events and behaviours. They also work to provide wider insights, powered by first-, second- and third-party data relationships. 

How data management platforms work

Understanding the key features and specific applications of DMPs can help clarify if they are a good fit for your requirements. 

A DMP is an audience-focused solution that helps marketers collate, manage and house first-, second- and third-party data to create target audiences and use that insight to launch, analyse and optimise campaigns. 

But, keep in mind that marketers may need more than a DMP to achieve their full omnichannel marketing goals and create a seamless data ecosystem. 

In light of all this, a DMP may be a good solution for organisations that are looking for an audience-focused data platform or perhaps want to use data to create and discover target audiences or lookalike audiences, and use data insight to launch, analyse, optimise campaigns, retarget and more.

How do DMPs work? Understanding DMP architecture 

At a high level, a DMP works to ingest or collect, organise and illuminate and then activate or facilitate anonymous data for personalisation and marketing and advertising campaigns using data from online, offline and mobile sources. 

But what does a DMP architecture look like in more detail? How does a DMP work to collate, organise and activate that data? 

To effectively aggregate and activate data, a DMP must first be fed and supported by an effective data foundation. Flowing in, a DMP needs both online and offline data: 

• Online data: This may come from a range of sources, including mobile apps, websites, media, analytics and more. 
• Offline data: This may come from the CRM system, email, purchases, etc., and should be supported by an effective data onboarding solution before flowing into the DMP. 

Housing and organising that first-, second- and third-party data, the DMP can then output a number of insights that can be used to create audiences and launch, analyse and optimise campaigns. Key data output from a DMP can be used to support: 

• Display advertising campaigns 
• Video campaigns 
• Search 
• Site-side optimisation 
• Mobile 
• Dynamic creative optimisation 

Supported by the right data, and running effectively, a DMP can also support a continuous flywheel of success. As we can see below, the insights and intelligence a DMP outputs can be used to support a more connected, unified data ecosystem, which helps create enhanced, personalised customer experiences — creating happier, more loyal customers and a greater volume of relevant audience data that flows back into the DMP.  

Why use a data management platform?

Now that we’ve outlined what a data management platform is, and what it can – and can’t – do, let’s look at key use cases that they can help address. Why use a data management platform? 

Data management platforms are required to turn varied insights into effective actions. Yet DMPs can be complex. In a quickly evolving market, solutions are varied and ever-changing; different DMPs can enable differing capabilities, and many are now comprehensive audience platforms that support the bridge between the CRM and digital, offline and online worlds. 

Therefore, choosing the correct DMP ultimately depends on why you want to use one (your key business objectives), but also your marketing position. Are you planning to use a DMP on the media sell or buy side? 

Why use a DMP? Advertiser side DMPs

For organisations on the advertising side, a DMP’s value is in being able to use data insight to inform purchases and enhance ROI. DMPs used here must be able to make the most of valuable offline data assets (such as prospect or customer databases), be able to combine it with other data sources (online first-party data and a range of third-party data), and enrich and expand reach through lookalike modelling capabilities. 

Why use a DMP? Publisher side DMPs

For organisations on the publishing side, the requirement is in having access to the data (typically online first-party web navigation data) to make the most of advertising revenue. 

DMPs used here must be able to capture this data – which is typically anonymous and unstructured – and transform it into actionable segment insight; for example, recording insight into online behaviour, then segmenting audiences accordingly.  

Other considerations when using a DMP

Other considerations to make when considering a DMP, aside from buy or sell capabilities and insight, centre around distribution capabilities:

• Do you need further distribution beyond conscious marketing display?  Addressable advertising is a core of many online campaigns. And while many DMPs focus on display primarily, this is only one channel; additional solutions may be needed for wider distribution.
• Can a DMP target a range of different channels?  Is cross-channel reach possible? Some more recent DMPs integrate premium display (direct buy) to enable cross-channel reach via SMS, email, etc. 
• How does a DMP link data assets?  Does a DMP mainly use cookies? Or does it also consider persistent IDs (unique to an individual) or fingerprint data or otherwise? 
• Can a DMP provide true attribution?  If a precisely targeted solution is required, make sure the DMP is comprehensive enough. Can the DMP take data from a range of sources (offline, online, first- and third-party, plus transactional data), all related to unique individuals, and use it for targeted action across a number of channels? 

DMP use cases

Looking at initial DMP use cases, at a basic level, the platform enables a number of immediate uses. These “low-hanging fruit” use cases can be facilitated out of a DMP almost immediately, and include:

• Social 
• Site and creative reengagement
• Prospecting 
• Suppression 
• Audience discovery 
• Search 

Advanced DMP use cases

These are not the only use cases, however. With additional assembly, input from wider business decisioning, technical support and setup optimisation, a DMP can be used to unlock more advanced use cases. These include:

• Look-a-like modelling 
• A/B testing and personalisation 
• Product recommendations 
• Site-side optimisation (SSO) 
• Dynamic creative optimisation (DCO) 
• Offline match 

Note that support and consultation from an expert data partner can help you unlock the most from your unique DMP setup and wider tech stack, as well as your data ecosystem and strategy, to ensure all elements combine into the best optimised use case. 

Getting the technology right for your business needs

Regardless of your data requirements, a DMP is not a stand-alone technology. It must sit alongside, support, and be supported by a number of other platforms to be truly optimised, such as the CMS, identity solutions. And it is critical that a DMP is supported by a strong data layer. 

So how does a DMP fit within the wider data tech stack? 

A DMP is fed by (and in turn informs) a number or sources, from web analytics to behavioural insights from the CMS and more. Because each platform in the stack supports the other, it is critical the insights and data flow between each is optimised. A MarTech stack is only as strong as its unification. Fragmented technology leads to gaps and incomplete insight; so understanding how and where to bridge platforms – and which platforms should be integrated in the technology stack – is critical. 

An experienced data and MarTech partner can help identify which technologies are the best fit for individual use cases and can help integrate or optimise existing or new technologies for best results.

Do I need a DMP or a CDP?

Data-driven marketers need a wide range of varying capabilities from their MarTech; and it follows that different organisations will have different requirements. 

Depending on an organisation’s particular situation, data foundation and existing MarTech, a range of technologies may be needed to support full, omnichannel data-driven marketing — and those technologies may include a CDP, DMP and more. 

Because DMPs (and CDPs each provide an element of data centralisation within the data ecosystem, there can be confusion about which platform is the best fit. 

So, what’s the difference? 

• A CDP works to aggregate customer data into a single customer database. At its core, a CDP is marketing software that works to centralise data from multiple sources, creating a unified customer database that other marketing systems can then use. 
• A DMP is audience focused, helping marketers collate, manage and activate data. Ultimately, a DMP manages and aggregates digital audience data (cookies, online behavioural data, look-alike audiences, etc.) to enable audience creation, segmentation, analysis and optimisation – and to provide the insight needed to launch, analyse and optimise campaigns. 

Do I need other technology solutions?

Marketing databases, data warehouses … of course, there are many other platforms and technologies that can be combined with DMPs and CDPs that can enhance results. For example, an organisation may need to incorporate more sophisticated identity resolution within a DMP or CDP to support the best data foundation. 

It is critical to remember that a DMP is not a stand-alone solution. To operate effectively and deliver the best return, a platform should be supported by a sustainable data strategy and a unified data framework. 

Before investing in a DMP solution, consider: 

• Is a DMP the best solution for your use case? Does it align with your organisation’s requirements, and does it include the necessary capabilities? 
• Does your existing marketing technology align with your choice of DMP? 
• Do you have the resources and expertise to implement the solution effectively? 
• Do you have a data strategy in place to support optimal use of your DMP? 

Acxiom’s data management & marketing database solutions

Acxiom provides the experience to assess and establish a sustainable data strategy and a data management solutions suite to support data-driven solutions and solve enterprise-class data management needs. 

Acxiom’s data management and marketing database solutions provide an enterprise-class foundation for unifying data and managing identity while helping brands activate key use cases that may require capabilities beyond those of a DMP or CDP. 

Marketers must assess and weigh these factors to determine the best path to address the full spectrum of brand needs for unifying and activating data. This is why employing Acxiom’s experience and employing a unified data layer framework can provide a flexible foundation for a scalable, enterprise-class solution that meets the brand’s needs, whether or not those needs include the use of a DMP.