Role of Data Management Platform in Digital Advertising | TechFunnel
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Role of Data Management Platform in Digital Advertising

Role of Data Management Platform in Digital Advertising

Digital advertising plays a key role in the marketing strategy for most businesses. It allows them to target their audiences more directly and effectively to help grow brand awareness in a market. Most digital advertising also has some kind of call to action from the business, encouraging customers to click on the digital ad to learn more. Whether they’re guided to a content marketing piece like a blog, a business whitepaper or testimonial about the business’s solution, or a product page, the role of digital marketing is to share content with audiences and ultimately drive engagement that leads to better customer relationships and or increased revenue.

Data management platform, or DMP, is integral in the management and execution of digital advertising. Digital management platforms are used by digital advertising buyers and publishers to house and manage data about the business’s audience. One DMP can handle data from multiple sources, making it an important part of business marketing and technology solutions.

 What is a DMP- Data management platform?

A data management platform is software that essential works as a database for digital marketers. It has all data related to an audience and campaign, found from many different information sources.  This digital advertising information comes from advertising publisher websites or apps where advertisers buy ad space. DMPs provide centralized store and access for marketers to access and use data to target their audiences with the message, including mobile device identifying a central location for marketers to access and manage data like mobile device identifiers and website cookie IDs that enable businesses to create targeted segments for their digital campaigns.

Companies can also use digital management platforms to house information about their users which they can then sell to digital advertisers. Publishers also often use DMPs to house data about their users.

How do DMPs help digital marketing?

If you’ve ever wondered how you can search a term or visit a website and then see ads for that product or service on Instagram, Facebook, and other websites – the answer is with DMP. Digital advertising is called programmatic buying; it allows advertisers to run campaigns across a large range and number of sites and apps with the help of ad exchanges, and demand-side platforms. Data management platform helps marketers unify audience and performance data from all sources, including online, offline and beyond and then allows businesses to use that data to build audience segments to target ads to.

Audience segments can consist of almost any customer criteria and data, including demographics, household income, past browsing history, purchase history, geographical location and more. DMPs can break your customer contact information into groups based on your segment criteria, so only the right audiences receive the messaging, allowing for you create more relevant, personalized, or customized content. Digital management platforms can also help analyze and optimize the performance of digital ads and show advertisers which segments performed best.

While Data management platforms are where audience information is housed, analyzed and segmented, demand-side platforms (DSPs) are the software that executes the advertising buy across the sites and apps the ads appear. The DMP sends audience segment data to the DSP which distributes it accordingly.  After a DMP analyzes the response, the DSP can use that analysis to retarget buyers and tweak the campaign.

Overall, digital management platforms are a crucial part of online advertising. Without DMPs, there is no efficient, measurable way to track which audiences are getting your messaging and which are responding. DMPs make digital advertising not only possible for businesses, but more effective. They can help bring marketing campaigns to life online and bring your business to more customers.

Marianne Chrisos
Marianne Chrisos
Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.
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