The Oracle Marketing Cloud and Econsultancy released an in-depth report based on a survey of over 170 global senior advertising and marketing executives – brand, publisher and agency side – regarding their use, experience and feedback associated with data management and specifically data management platforms (DMPs). We wanted to see what the marketplace has learned about DMPs and what their feelings are associated with the technology on the whole.
Although data management platforms have been on the market for a while – first leveraged by advertisers invested in programmatic success – their full potential is just now truly being realized across organizations as a central hub, for marketers who want to deliver the most robust, relevant customer experience they possibly can. And, with the added bonus of doing so while adding incremental revenue and driving overall cost efficiencies. They’ve become central to most programmatic marketers and advertisers. That said, our joint report detailed some of the finer points of data management that go beyond the standard insight. Here are five points from the research to get started.
1. North America slightly outpaces Europe regarding DMP adoption
But that is rapidly declining. Keep in mind that most DMPs were created in North America with access to more scaled data marketplaces (third party audiences that are targetable based on demographic characteristics). And, given that adoption has predominantly been to support advertising investments, this makes sense. That said, there is growing use case support for second party (partner) and owned data audience creation (based on data an organization already has access to) that are also helping to bridge the global divide and are fueling the adoption worldwide.
2. The importance of a DMP to a marketing business is growing
But, there is still some variance on just how critical they can be. To me, this provides opportunity to develop tremendous use cases in this still relatively nascent market because there are a variety of reasons for DMP, or data management success in an organization that go beyond install. One needs to have the right organizational maturity and structure, as well as the ability to operationalize the use and use case adoption for data management, IT/Marketing alignment, data inputs, data ingestion and integrity, etc.
3. DMP adoption use cases to centralize first party data
This is an incredible testament to the ability for marketers to centralize key data they already have, and then create activation opportunities associated with it. And even using that same data for cross-channel activation. In essence, paying for third party (from branded data providers) isn’t necessary in scenarios where marketers can leverage data already in their current systems like CRM customer information. The ability to leverage and act on this type of known data is invaluable to marketers who want to deliver value for their customers and learn more about what they already do, say and buy.
4. Optimization channels, outside of advertising only, are growing
Web, Search and Mobile lead in optimization channels, which makes sense given they rely heavily on first party data use and contribute easily to lower funnel conversion activities – or, meeting direct response objectives. Using DMP-created audiences through channels that can specifically close a transactional loop is a tremendous way to see immediate revenue impact upon deployment and is validated here.
5. Organizations need to be fully equipped
Our survey asked respondents what the leading barriers were, if a DMP hasn’t been brought in house. It is absolutely no surprise that internal expertise and ROI are the top two items elevated. And, what is a DMP – somewhat funny, also illustrates the nascent nature of the technology for some industries and marketing leaders. That said, this provides tremendous guidance for us – as product marketers – to ensure that our customers understand the value and the business return (make money/save money) a DMP can offer.
Download a copy of this report, The Role of DMPs in the Era of Data-Driven Advertising, to read more about these insights, along with many others.