How a Data Management Platform (DMP) Work for Digital Marketing?

Today, information or data is considered one of the most precious things and sometimes it is referred to as a new form of digital currency. It is an important tool which can do miracles for any form of business. This is a reason why you should know how to utilize data effectively in order to get the best out of it in minimum time. The modern-day advertising is quite challenging and sometimes it becomes quite complex as every small thing get counts. This is exactly where the Data Management Platform (DMP, wiki) comes into the picture.

Having a large data is a big bonus for any business but utilizing that data to get a competitive advantage is something businesses have to learn over the period of time. If you are not sure about the role of DMP in digital marketing then here we have made things easy for you. Simply browse through below points to know how DMP can help your business to grow by playing its part in digital marketing:

1. Data Collection:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 1DMP includes customer data warehouse which collects important information from a variety of advertising platforms, touchpoints, and channels. This let marketing people collect a variety of data coming from a diverse range of sources under a single roof thereby getting a 360-degree view of consumer activities. Marketers can tap data of their existing users into the latest audience segment and dig out strategies that can target prospective customers. Companies can also optimize their overall process of advertising purchase ad only focus on ads that can impress the audience.

Data Management Platform

2. Data Insights:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 2DMP lets businesses to scrutinize important analytics insights that can be used to decide marketing strategies on the basis of the targeted audience.  Companies can also use analytical tools to develop a pattern for users very similar to its best customers. After collecting such extensive data, media agencies can easily produce custom reports thereby demonstrating their customers about the transparency of company operations. The data will be constantly flowing into the DMP and it will be updated on regular basis. What it means that companies can use this update information to decide their marketing tactics and update them from time to time.

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3. DMP Integrations:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 3Nowadays, companies are focusing on integrating DMP with ad exchanges, Supply Side Platforms (SSPs) and Demand Side Platforms (DSPs) that offer publishers total control over different forms of ad distribution.  What it means that if a business has DMP then it is highly recommended to integrate it with other ad tech solutions that make sure your all data is activated in a precise way.

During the initial time, DMP was utilized by only bigger brands who wanted to target their advertising only to a specific group of people. Today, even small manufacturing companies and retail brands are using DMP advertising to monitor the progress of their promotional campaigns. Nowadays, DMP is not only used by big industry giants but it is also used by small to medium scale businesses that hail from different industrial segment.

4. Improve Customer Loyalty and Brand Awareness:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 4Availability of abundant data creates strong pressure on marketing people to deliver a unique online experience that can enhance customer loyalty and brand awareness. Modern customers are also searching for tailored based content, optimized e-commerce experiences and personalized recommendations which are offered on a consistent basis. This is exactly where the challenge lies for advertisers and DMP will make things convenient for them.

Data Management Platform involves systematic steps which are data aggregation, data arrangement, data analysis, and data allocation. In order to the successful implementation of DMP into digital marketing, every business has to take care of all these steps carefully.


While talking on the brand awareness in his recent interview, Maciek Sawa, the CEO of OnAudience Ltd, nicely quoted,

“Systematic use of information gathered by DMP gives advertisers the flexibility to modify their marketing campaign according to the reaction of the target audience. The end result of this process is extremely effective which creates a lot of conversions which eventually affect ROI.”

5. Selection of the type of Data:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 5DMP is capable of collecting information from defined sources. The only thing businesses need to do is to decide what type of data they are interested in. The overall data collected can be divided into three different categories. The first party data contains CRM, subscriptions, app data, transaction systems and statistical information gathered from Google Analytics. Though second party data is considered very similar to the first party, it is offered to a different organization that was also part of the operation. On the other hand, the third-party data is gathered and categories independently which is then sold to a specific company.

With billions of users accessing the internet every day from all around the globe, companies have to decide the specific segment they are targeting. At times, businesses need to focus on extending their research by leveraging more resources which they haven’t used before. No wonder companies have started executing out-of-the-box strategies and utilizing DMP in digital marketing is simply one of them.

6. Set proper Marketing Budget:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 6DMP helps you to manage ad campaigns successfully that eventually helps companies to enhance user experience and boost conversion rates thereby creating a strong brand. Businesses can allocate their marketing budget properly thereby achieving better returns on their investment.

It is very difficult to build a marketing campaign without having any idea about how your customers perceive your products or services. This is where you need a data analysis and DMP has a high scope in this aspect. When the consistent stream of data pass through DMP, you can easily observe small changes in consumer behavior such as their trends and choices.

7. SEO:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 7SEO optimization is another aspect where DMP has an important role to play. The entire research done is not only used for setting up ad content but it can be utilized for internal purpose too. When it comes to SEO, DMP is useful in three different aspects.

  • It helps you to plan out a content that your targeted audience is more interested in.
  • Exhaustive research is done that lets you find out keywords that will rank your content higher.
  • The profile data lets you search out for a perfect fit for your guest posts.


8. Data monetization:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 8Data monetization is another aspect of digital marketing where DMP finds its crucial role. In this technique, you can simply gather information from a diverse range of sources and sell it to the right companies who are in real need of it. This way you can become a third-party organization that can sell reliable data according to the requirement of customers. This is one of the most profitable and effective ways of using DMP as you only need to concentrate on getting a consistent flow of data and don’t need to worry about other factors.

9. Integration, Scalability & Data storage:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 9Though DMP has a lot of potentials to make difference in the outcome of your digital marketing, there are several challenges that companies need to overcome in order to the successful implementation of DMP into the system. Integration is the first challenge that businesses face as they have to set up a proper linking between all their sources and also need to make sure they are compatible. Scalability is the second important factor that companies need to look after and the cloud platform is an amazing solution to this challenge. Data storage is the third aspect that businesses have to look after as a part of their data management strategies. Using a right combination of automation and manual approach is a right tactic to get the best out of the DMP.

10. Data Monitoring:

How a Data Management Platform (DMP) Work for Digital Marketing - Point 10After setting up all your digital marketing campaigns at the right place, it is very important to monitor their overall progress. Data Management Platform helps you to realize how your marketing tactics have performed. You can set up different milestones and judge performance of your marketing campaigns for the shorter or longer term. Using DMP, you can evaluate which particular customer segment has offered you outstanding results. DMP lets you conduct a profile analysis of consumers based on their age, demographics, profession, and preferences. It offers details reports that offer a complete overview of your digital marketing performance. DMP also demonstrates which audience was highly exposed to the marketing campaign and which one is left out. Once you complete your performance analysis, you are ready to upgrade your marketing strategies and keep everything flowing exactly the way you want.

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The Bottom Line:


Data Management Platform will have a key role to play in digital marketing strategies on the virtue of its ability to gather and categories user data into different segments to make strategic decisions. DMP will integrate the diverse type of data into a uniform system that will make sure your advertising campaigns are ticking right boxes.

Digital marketing is evolving every day and it requires a smart approach from your side to keep everything running in the right direction. If you really want to impress your targeted audience, you need to discover the hidden potential out of your collected data.  Taking into consideration all the viable options, we can indisputably say that you can only achieve it through a competent tool such as Data Management Platform. It is a vital entity that needs to be dealt with utmost care. It has the potential to create miracles for your business if you execute your strategies precisely and everything goes according to the plan.

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Published By: Souvik Banerjee

Souvik BanerjeeWeb Developer & SEO Specialist with 15+ years of experience in Open Source Web Development specialized in Joomla & WordPress development. He is also the moderator of this blog "RS Web Solutions".