Data Management Platforms - Q&A
There is a lot of talk in the marketing industry about utilizing as much data as possible, and some brands think of implementing a DMP (Data Management Platform) to realize that ambition. In this little Q&A piece we will guide you through some things to take into account before thinking further, the alternatives out there, the cost associated with a DMP and how you get started.
But first, what is a DMP anyway? Data management platforms are central hubs that store and analyze all of a company’s customer, audience, and marketing data (first- and third party data). DMPs help organisations make best use of the massive amounts of data they collect by analyzing data from multiple sources, sharing it with other platforms and presenting data in easily digestible ways.
Do I actually need a DMP? Before moving on you should answer yes to a couple of questions:
Do you have the ambition to use other data assets than your first party data from website, apps etc. in your marketing?
Do you have at least a few other platforms already implemented to be able to activate your DMP data?
Do you have the processes and organisation in place to manage your always on and campaign based marketing on granular audiences and frequent optimization?
What’s the purpose of a DMP? By using DMPs, advertisers and agencies can slice and dice their data to create audience segments for display, search, video, and social campaigns; apply it to campaigns targeting audiences through the customer journey. In essence, increase your marketing efficiency.
Is a DMP just something I add to my tech stack and switch it on? Wouldn't that be nice! it is not. Before you get started, think about your data strategy. A DMP is just part of your overall data architecture and strategy. Choosing a DMP largely depends on your priorities, and how you want to leverage a DMP within your overall tech stack.
What is the right DMP for me? We’ll get to that in a minute, but until then, here are some key features that need to be considered when choosing ‘the right’ platform:
Retargeting & Prospecting
Media Integration and Tag Management
Marketers need to evaluate and rate suppliers based on all the above aspects before shortlisting a supplier. Success of a DMP is dependent on its features, flexibility and its implementation. Marketers should carefully choose the DMP that aligns best with their organizational structure and needs.
A successful DMP deployment will reduce your paid media waste, strengthen your customer life cycle and increase operational efficiency. For some popular DMPs we have seen people use, see graphic below.
Ok then, but how much is it? Think of a DMP as a business investment, not a marketing/advertising cost. Depending on what platforms you are considering, the size of your company, available and desired data and any other individual needs (such as renting vs. buying, bundle or standalone solution etc.), pricing can differ quite significantly.
DMPs will typically charge monthly fees based on the unique number of users that will flow through the platform. Every DMP will have a different pricing model based on the inclusion of different features (such as the inclusion of augmented third party data, services offerings, advanced algorithmic modeling, etc). So while its difficult to put an exact number on the investment, as a smaller advertiser, you can expect to pay from around €2000 a month for your DMP.
Alright, I’m still interested, what do I do? We would love to assist of course, so contacting us would be a great start! To get you up and running, we are working with the best DMP providers in the Nordics. Most DMP platforms are SaaS-based and require just a tag or two to be installed on your site. However, there are additional critical steps to consider.
You will need to implement a pipeline between your data sources and your DMP of choice. For web-based data, this typically means implementing a data collection tag across areas of your site where users portray meaningful behavior. Next you’ll want to classify user actions from the perspective of intent. Based on your data, organize users into relevant categories.
The logic behind a DMP is, of course, to give you detailed information about your customers to create hyper-targeted ads, which result in higher conversion rates, ROI and customer retention. Those ads and customer journeys need to be created based on your specific target audiences. We recommend working with reliable, local partners who can assist you from start to finish.
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