Ever heard the phrase “Data is the new oil”? Some say that the statement is highly debatable, others – that even though there’s certainly merit, it should be taken with a grain of salt, and there are those that confidently proclaim it as indisputable fact.
If you are wondering: we’re with the third group. Not so subtle evolution of data management platforms from a useful sort of thing into the absolute must-have is a strong vote in our favor. DMP’s have just recently emerged as crucial tools for delivering the right experience to the right customer at the right time, hence the immediate surge in popularity. Besides, we’ve all witnessed a very impressive 25% boost in 2018 with almost 5 billion spent on data management, processing, and integration of products. It seems that the DMP soft market share will keep on growing. And with digital marketing becoming more data-driven by the hour, it’s vital to finally get a firm grasp on the whole DMP process and reset the playing field. So how about we start by answering some of the important FAQs?
Useful notes from professional DMP users
It makes no difference whether you are searching for your ideal DMP for the first time or looking to upgrade the one you already have – this information would be of tremendous help. A few years ago, a detailed survey on DMPs came out intending to highlight what matters most to the long-time professional platform users. The survey itself was conducted among 500 either marketing or IT professionals all working with DMPs.
Now, the first thing they learned is that almost 80% believe that DMPs that lead with experiences are the ones that offer results. Another important finding and we’ve seen this a lot lately, it seems that everyone is abandoning the first-generation DMPs. The survey also showed that due to numerous limitations of the first-generation versions of the platforms, over 50% of users were either looking for an up-to-date advanced DMP or planning to change things up in the near future.
Management-wise, we’ve seen more than half of those surveyed stating that they preferred managing their DMPs in-house with only 25% stating that they were more comfortable seeking professional help from an ad agency. Almost 50% said that their IT departments and teams were the ones in charge of running data platforms. What’s interesting – the bigger the company and its earnings, the larger this number gets. So, those with an annual revenue above $250 million have 60% of IT departments managing their data management platforms. Lastly, almost 80% of those surveyed stated that DMPs related knowledge and skills would be crucial for any digital marketers’ CV. Hence, it’s about time to become knowledgeable in the field.
What does a professional DMP offer today?
For those looking to move their business into the new customer-centric era and make decisions based on meaningful data analysis, data management platforms are everything. 2020 is actually the year when we’re finally shifting our focus to customer experience which, having moved price and product aside, has undoubtedly become the key brand differentiator.
A professional DM platform, apart from the obvious collection of the 1st, 2nd and 3rd-party data pulled from a multitude of different sources is also the best tool we have today to build targetable audiences, boost retention, and effectively optimize ad campaign performance.
The newest advanced versions of the platforms can accurately predict customer behavior and help businesses to carry out highly-effective data-driven ad campaigns. Moreover, the professional platform today offers on-point analytics. It studies, assesses, and inspects all to create targeted and optimized campaigns, boost retention and offer expert predictions to reach the right audience. Today’s DMPs clearly can do it all, you just have to roll up the sleeves and find a professional one.
Top considerations while choosing your DMP
Launching or enhancing your existing DMP can quickly turn into a difficult task. There are way too many choices and the stakes of making a mistake are too high. Write yourself a list of what’s important to your business, come up with non-negotiable things and start looking.
There’s no way you can use a DMP that has limits on the amount of data that can be collected, stored and analyzed. You won’t succeed if there are restrictions on 1st-party data sources. A professional DMP has to offer an extremely detailed and intelligent dissection of customer’s behaviors, effectively work on all of the different platforms, merge 2nd-party and 3rd-party data, run applicable result-oriented analysis, predict purchases, etc. So, yes, shopping for a perfect DMP can get a bit confusing. A smart thing would be to clearly understand your goals and work from there. The whole prose doesn’t have to be complicated, so, let’s look at our key demands.
To start off well, you need to check out the DMPs customer support. It should be a priority if you’re just starting out, as you will certainly need a lot of qualified and consistent help.
Data collection process
You should also have a clear understanding of the data collection process. Make sure that your DMP platform is fully committed to collecting info from from all possible sources, including mobile web, apps, social platforms, CRMs, email, moreover, be fully committed to and exhibit strong results for the 2nd and 3rd party sources.
Audience insights are what makes this system a must-have for any business and is exactly what helps companies to run highly targeted campaigns. DM platforms turn immense amounts of audience-related data into a customer retention tool, revenue boost, time and budget saver, hence pay extra attention to what your potential DMP can offer. This is a step to be taken with utter seriousness.
Now, a great example of advanced DM soft would be someone like a data management platform by admixer.com. First and foremost, they offer extremely intelligent targeting audience targeting, which includes customer behavior, geolocation, IP, demographics, browser, date, time and dozens of other data points. You can also count on customized retargeting campaigns, offer custom-build audiences as well as specialized branded ones (both vital for boosting ad campaign results).
Modern platforms can easily collect, systemize and analyze information from any source, they are able to combine online and offline information, meaning you can count on receiving customer insights based on mobile data, CRM, any sign-ups and questionnaires, website visits, social media info and activity. Any information source would do.
DM platforms clearly cover a lot of ground. However, you need to make sure that your DMP offers effective optimization. There needs to be an effective way to know where you are performing well and where you’re not reaching your target audiences.
Data usage nowadays goes hand-in-hand with the customer consent and it is vital that your DMP follows data protection laws to the dot. Apart from those already put in place, we have a lot of new regulations on the horizon and new restrictions to access consumers’ data.
This year started off on a bad note with a huge Avast scandal. Turns out they were stealing customer data through their subsidiary and made millions by registering “Every search. Every click. Every buy. On every site” and then selling it to Microsoft, Google, Yelp, Pepsi and many more.
So, from now on, everyone’s number one priority should be rebuilding consumer trust through showcasing the value of data-driven innovation and your DMP has to be on board with this mission.