Data Management Platforms

Just a few decades ago marketers complained that there wasn’t enough data about marketing campaigns, which would allow them to understand consumer preferences and develop better marketing strategies. Today, the situation is quite the opposite – there is way too much data available and now, there is a new problem – there aren’t many specialists who can analyze this data and make recommendations based on it. However, there is a solution – DMPs, or digital management platforms.

What is a DMP in advertising?

DMPs, or data management platforms, are digital “warehouses” that collect marketing data from different advertising platforms and channels, allowing marketers to gain a unique insight into the performance of their marketing campaign as a whole. Using a DMP allows advertisers to understand their existing audience better and make calculated decisions about which prospective customer segments to target.

What do marketing DMPs do?

Data collection

One of the main jobs of a data management platform is data aggregation for its customers. These include parameters such as demographic characteristics of the audience, their interests, patterns of online behavior, online identifiers such as cookies and more. This data usually comes from several sources: social media, apps, websites, web analytics tools, TV, etc. DMPs also aggregate data collected by third parties to provide you with an even better data profile.

Data sorting

Once data is collected, DMPs arrange and prioritize this data according to different parameters that are defined in advance. From here, a catalog of different audience segments is formed.

  What does API stand for?

Data analysis

Once the initial data has been sorted, the platform begins to analyze and interpret it. In particular, the algorithm takes into account each user’s past behavior in regards to ads, their preferences and engagement patterns. The platform analyzes which offers the user is more likely to react positively to, which is essential for making the most out of your ad budget.

Data distribution

Once all the data has been analyzed and relationships between different variables and user behavior are found, obtained behavior patterns are forwarded to ad networks, DSPs, ad exchanges, SSPs and other media buying platforms. Once the data is used, customer response data is collected, analyzed, improved and send back to media buying platforms. This creates an infinite loop of refinement and improvement for your marketing campaigns.

Who can use DMPs?

While it may seem like using DMPs is very complicated and expensive, it’s not just the big brands that can use the services of DMPs. Many small and medium-sized businesses have turned to using DMPs for optimization of their marketing campaigns because when you have a small marketing budget, it is even more important that as many people as possible buy your product after seeing your ads.


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