Big data. Bigger data. Data this and data that. As you are reading this terabytes of data are literally being generated by people all over the world. As to what the marketers of the world will do with all this data is the issue at hand. The key is to use the right data. And to do data right you need a data management platform (DMP).
No matter how hard marketers try to embrace organic channels and word of mouth, paid advertising continues to drive results. And the largest part of digital display ads is the data-driven, automated ads called programmatic. According to Ad Age, “Programmatic ad buying is growing not only because it makes ad transactions more efficient but because it can make them more effective, as long as the right data is applied.”
Before I get to the 9 reasons marketers need a DMP let's review the 3 different types of data that is out there and available to marketers.
First party data. Data contained in systems that a company already manages, like a website, social media, CRM, retail point of sale, call center, and mail. First party data typically has both known (identity) and unknown (anonymous) data contained in the systems and is stored either on premises or via partners. First party data usually has the most exclusivity, but can be limited in reach.
Second party data. Data that is brokered between two organizations, for instance, brands (like say a car manufacturer and a retailer) that might want to share list data for enhanced targeting or co-op opportunities. Second party data is generally not public data.
Third party data. Data that is anonymous with the most amount of reach, least amount of exclusivity, and is purchased through a marketplace (and bid on) based on its reach and cost parameters. Third party data is generally used for programmatic advertising purposes.
A data management platform provides marketers with centralized control of all of their audience and campaign data. It helps them manage and analyze this data to craft, target, and optimize campaigns that reach more of the right people and drive improved ROI.
Here's 9 reasons why you need one.
You remember accountability, right? It's where someone or in this case something takes responsibility for something.
The data management platform (DMP) and data-driven marketing are here to enable accountability. The more you know about your customers and prospects, the more precisely you can target and market. Sounds simple. And obvious. But add one more piece to this. With all the data available to marketers, if you approach this with an eye towards generating revenue, you can actually cut marketing costs by reducing waste and dramatically improving your ROI.
Download the Guide to Advertising Accountability and learn how a DMP can hold your marketing and advertising accountable.