What is a DMP and how does it work

We've already talked here on the blog about what it is programmatic media and how important it is to implement it in your company. In this same context, let's talk about What is a DMP (Data Management Platform) and understand how it works.

In this post we will cover:

• What is a DMP
• How a DMP works
• Why implement a DMP
• What are the main DMP tools

What is a DMP (Data Management)

A DMP, or data management platform, is software that manages data from different channels, interpreting, collecting and organizing it, providing useful information to its user.

One DMP uses user ID (identification) and cookie management to segment audiences and direct advertisements to the target audience defined by the platform user. This way, you can obtain more targeted data to create more assertive audiences, optimizing campaigns and ads, creating more chances of conversion.

How a DMP works

The tool collects data from three different sources: 1st party data; 2nd party data and 3rd party data.

1st party data is obtained from our own channels, such as websites, social networks, email marketing campaigns, landing pages, CRM and applications and mobile devices. This is information that the potential client provides us spontaneously (work carried out, for example, in marketing strategies inbound marketing).

So-called 2nd party data is the same types of data obtained in 1st party data, but is obtained from third-party channels. Likewise, 3rd party data comes from third parties and is generally purchased, but complements the 1st party and 2nd party information, being data such as age, gender, income, geographic location and interests.

In this way, DMP performs data collection, processes the information and uses it for programmatic media data. This is how segmentation is carried out, with the creation of audiences and the identification of which audience to impact, on which channels and in what way.

Why implement a DMP

The biggest benefit of DMP is targeting the target audience. Transform all that big data in information and using it in the best way to reach your audience is the big business of platforms.

With this, you will be able to target your campaigns, optimize the user experience, improve ROI of your campaigns, structure efficient campaigns and manage several online campaigns at the same time.

What are the main tools

To keep you up to date with the DMP market, we've mentioned some of the best-known data management platforms.

Audience Studio is the Salesforce platform. DMP is very robust and capable of analyzing millions of data quickly. Adobe Audience Manager, from Adobe, is very fast and activates segments in real time.

Mediamath DMP also works with real-time data and has big data tools. Mediamath was chosen, in 2019, as the best DMP platform at the Digiday Awards 2019. Tail is a platform with many features and offers several segmentations.

How about we talk about programmatic media strategies? Vero Contents, in partnership with Publish, it will help you achieve your business goals and achieve high conversion rates. Get in touch with a Vero Contents expert.

Marcel Castilho

Marcel Castilho is a specialist in digital marketing, neuromarketing, neuroscience, mindfulness and positive psychology. In addition to being an advertiser, he also has a Master's degree in Neurolinguistic Programming. He is the founder and owner of Vero Comunicação and also the digital agency Vero Contents.