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Aleksander Janicki
DMP - Data Management Platform. What is it?
In brief:
DMP, i.e. Data Management Platform, means a Platform for Data Management
It is like a wholesale warehouse of data which enables you to set user profiles
Thanks to the programmatic algorithm the ads are displayed only to those users who are interested in their content
So you can target your website audience just like you do on Facebook or in Google Ads, e.g. 30-40-year-old women interested in fashion
It increases your ad income, reducing marketing costs at the same time
It is particularly beneficial for small local and regional publishers
You can make use of it by cooperation with a DMP provider, such as DMP 4media
Table of contents
- What does DMP stand for?
- What is DMP?
- Data Management Platform functionalities
- How to use DMP?
- What is Real-time bidding?
- What is the advantage of the DMP platform over traditional online ads?
- DMP - a chance for local and news websites
- How to make use of the Data Management Platform?
What does DMP stand for?
DMP is an English acronym for Data Management Platform and it literally is so.
The name quite accurately indicates what the platform can be used for.
Let’s take a closer look at it.
What is DMP?
DMP is a data storage system. The data is obtained from many sources.
When users visit your website, each of them leaves a trace of themselves by giving their consent to share some data with you.
What is the use of data collection?
It may serve for user analysis and user profile creation, which makes the ads more effective by improving user interest matching.
In other words, DMP will provide you with the information that your website is viewed by 1536 women between the ages of 30-40 who are interested in fashion.
What is more, your sales specialist or Your editorial office worker dealing with ad sales may increase their sales records when equipped with such knowledge. They will simply convince the potential advertisers to buy their ad space on your website in less time.
Such data collection has no limit.
The Programmatic algorithm tracks for example every link clicked by a given user when visiting your website.
The algorithm adopts this previously obtained knowledge the next time the user visits your website.
The Programmatic is a fully automated ad model that enables the highest level of personalization.
It considers all the possible factors, e.g. users’ purchasing preferences or even those seemingly irrelevant such as the time of day.
At this point, it is worth noting that in the advertising model under discussion, different content is displayed to each user in the space for promotional materials on different pages.
After analyzing the data, it determines the chance for an internet user to purchase a product.
If the ad display is perceived by the algorithm as favorable, your offer (RTB; it will be discussed later) will prevail over the others, provided that the page on which the ad is displayed meets specific requirements – your ad will be displayed to the user.
Data Management Platform functionalities
Personalized ads – ads are addressed only to users who are interested in the presented product/service
User profiling – creating unique user profiles, based on their needs, interests and activities
Classification into user type – thanks to new users’ correlation with the already existing user types, we can reach them with advertising even if we do not have much data about them
Insight into your business development – you get constant data inflow which allows you to create more accurate user types
Content and product recomendations - thanks to the data management platform, you can accurately reach the recipients
Data monetization and sale - you can buy data about users and earn money from advertising. But you can also collect and sell data
Enhancement the knowledge about recipients - thanks to the DMP analysis, you can get to know the personal needs of users
Increasing the customer base - thanks to an appropriate marketing strategy based on DMP, you can increase your audience base and create a bond between them and the brand.
How to use DMP?
As I mentioned before, internet users „gladly” share the data on themselves.
It is mostly due to the popping windows which push the users to provide numerous consents. The user is faced with the choice of a single click that he agrees with or 15 times that he doesn't.
If they don’t agree, they will get attacked with the same pop up window the next time they visit a given website.
Not paying much attention to this, the users give their consent to almost anything, allowing the websites they visit to collect data on themselves.
These collected data are then shared with other subjects, e.g., you - being the owner or the news site publisher.
The entire process is automated and it does not mean that you will browse the data personally.
The algorithm will do it for you. It will collect all the data from all the available sources and it will start creating the user profile.
What is the user interested in? What was the last thing the user searched for?
If it were hardware, this would be the content that could successfully convince the user to purchase a given item.
Moving on, is the ad click coming from the computer or the phone? At what time does the user click it?
You get the idea.
The entire process will result in user qualification for one of the customer groups.
For example: if someone frequently buys discounted items, they can be classified as a bargain hunter.
You could provide them, for example, with advertisements informing them about temporarily limited discounts.
If they decide to buy something via the internet shop being transferred from your website, you will get some of the income.
RTB (Real-Time Bidding) is quite helpful with that.
What is Real-time bidding?
It can be literally translated as bidding in real time.
How real is the time? It lasts about 100 milliseconds, which is 0.1 seconds.
Advertisers make a pre-estimation of their maximum ad space budget.
The advertiser who submits the highest offer – wins the bid.
If you buy ad views targeting a particular user type, your marketing campaign will be more successful and it will visibly increase your sales records.
It’s worth correcting here: Data Management Platform is used for data collection and analysis, but it is not made for advertising transactions.
DSP (Demand Site Platform) is the tool dedicated to it. However, it does not make any difference to the client. It is the marketing workers who should care for it.
What is the advantage of the DMP platform over traditional online ads?
For advertisers, this solution has virtually only advantages.
Earlier, one had to do a research on what websites were visited by the potential buyers of a given product. Next, one had to pay for the advertisements on those particular websites.
For example, if we sold car fragrances, we had to put our advertisement on car service or car resellers’ websites.
You can imagine that it involved much more work, while being inaccurate and more expensive at the same time.
Most of all, it generated less income. Why would we place the ads in such a space only? Potential buyers visit other websites too.
Besides, a number of people might not be interested in car fragrances, but in car services instead.
Today ads can appear on any website, as we no longer target the entire customer group for a given website.
We switched to every single user targeting, so it does not matter which website they view, the ad will follow them anyway.
Our knowledge of their preferences is quite wide if they share them with us.
Location, age, sex, internet browser history or the website they visit at the moment.
In consequence we can accurately reach users characterized by the maximized potential to buy our product/service.
Moreover, the income from ads frequently varies in relation to the amount of time the users spend on your website.
Their preferred content being displayed as well as the personalized ads can have a real influence on the size of your wallet.
Last but not least. It is frequent that once we search for a product online, ads presenting similar goods can still pop up in our browser for a long time irrespective of the fact that we have already purchased the desired item.
The system we use can track the user’s Internet activity, so that it will stop showing them the ads if they have purchased the item of a given type.
It has two advantages: firstly – more reasonable marketing investments. Less money spent, better advertising.
Secondly, the user does not get discouraged by unsuitable ad content on a given website.
On the contrary, the user sees only dedicated ads, so they might be willing to spend more time on your website.
Putting ad content quality before its quantity might also result in reducing the number of ad banners on your news website which, on the other hand, may improve it as well. Less is more.
DMP - a chance for local and informational news websites
Data Management Platform is beneficial to all advertisers.
However, it is the smaller, local publishers, running their local news websites who get the real chance.
They get a tool which enables them to create advertising campaigns similar to those on Facebook and in Google Ads.
Thanks to better ads content matching, combined with wider knowledge of the users preferences, the local news websites owners can offer higher rates for their ad space.
Reaching a particular audience accurately means that the users are not aggressively attacked by ad content they are not interested in.
It is a win-win situation: the user is satisfied and you earn more by increasing your website’s profit.
The ads on your website will reach only the given topic-oriented audience who by clicking the links, buying the products will generate additional re-link income for you.
A relatively high conversion rate resulting from the placement of ads on your website will bring higher bids from advertisers for ad space on the website.
If you feel that your news website is like a slowly sinking ship, the DMP may help you bounce back and breathe new life into it.
How to make use of the Data Management Platform?
I believe that on account of the above I have managed to convince you that DMP is worth trying.
How to do it?
Naturally, creating your own DMP would be a time consuming, expensive and multiple-error generating experience.
Therefore, we recommend that you take advantage of an existing one.
Our 4media CMS is integrated with a Data Management Platform.
We collect and analyze data from various sources, thanks to which we have helped many local publishers throughout Poland to succeed.
We also provide a complex CMS 4media tool that will help you create your web news site, easily manage it and make a profit out of it.
You will not have to bother yourself with the complicated technical aspects of it.
We’ll do it for you!
Contact us and let us arrange a free presentation for you: [email protected].
