Data Management Platform: Issues & Recommendations
Today, the DMP (Data Management Platform) is everywhere, from the projects of marketing boards to the columns of the specialist press, including the service offerings of agencies. In a world where data is gold, the DMP presents a critical challenge, combining technology, marketing, media and organization, and is now far beyond the buzz stage. More and more companies, however, are wondering about the DMP: why embark on such a project? What about its ROI? What are the business challenges justifying its implementation? And how to make the most of it? Find answers, challenges and recommendations about DMP in this article.
What is a DMP?
Real conductor of your data, the purpose of a DMP is to unify and centralize all available data about an individual, whether they are owned data (navigation, mobile, social networking, offline, CRM) or third party data. More concretely, a DMP is a software platform allowing companies to collect and centralize customers and leads data, and to reprocess them (by unifying them, enriching them, segmenting them, and steering them), in order to activate them on the different channels with which the DMP is connected. The challenge is then to obtain the most complete view possible of my audience, in order to be able to cut it into segments, and communicate effectively with them.
The challenges of a DMP
The challenges of a DMP are multiple, but we can identify two main ones:
- Optimize media purchases: At present, the majority of advertisers deciding to invest in a DMP do so to optimize their media spend: 87% cited specifically their willingness to improve ad targeting, while 83 % quoted a need to adapt the purchase of media audience (Source: Winterberry study for IAB). Currently, it is extremely difficult to determine what the yield of media purchases is: a DMP provides visibility into the profitability and performance of media exposures.
- Optimize purchase tunnel: The second issue of a DMP is related to optimization opportunities in the conversion rate on the website and mobile, as well as the purchase tunnel: the collected and aggregated data allows for a detailed and comprehensive picture of its audience, and thus to customize as much as possible the experience in the digital ecosystem.
Succeed at a DMP project
Nevertheless, the complexity of a DMP requires you to follow certain recommendations to ensure the success of its implementation:
- Start with a simple scenario: It is essential to avoid going too fast, too fast, and to wish to use all data sources from the start. Instead, we must accept to start using simple scenarios and enrich, refine, and ramp up gradually.
Let’s take the example of one of our customers, a European telephone & television operator. Their first use case was to distinguish its customers from its leads, by “on-boarding” in the DMP its CRM data. Once this distinction made, each segment was offered different purchasing tunnel but also specific advertisements (display and search): the implementation of this basic scenario led to a decrease of 18% in CPA (Cost per Acquisition) and a 45% augmentation of the Display CTR (Click Through Rate). When we are spending millions of euros in media purchasing, it makes a huge difference in terms of business impact!
- Integrate CRM data with audience profiles: Secondly, it is also essential not to limit ourselves to the data obtained from online customers, but rather to strive to integrate CRM data into the audience profile. This allows to adapt the purchase tunnels thanks to the existing data, in order to get an even clearer and even stronger vision.
If I take the example given above, the customer in question was able to identify the most effective and appropriate offers for its customers, but also for the leads he had touched, thus managing to refine his message and performance.
Again, before using third-party data, using data from the company made the difference: in less than 6 months, the client was “even” and all revenues generated were then profit!
What about you, what is your experience in DMP? Feel free to continue the discussion and share your views on the subject in the comments !