Data Management Platforms (DMPs)

A data management platform (DMP) is aimed at storage and analysis of audiences to support better targeting of audiences with relevant propositions from brands via ads and personalized content. They are typically used by enterprise organizations together with their media agencies rather than SMEs.

The aim of a DMP is to use the insight collected from digital interactions to improve conversion to sale by increasing the frequency of brand messages through the customer journey.

To improve targeting, DMPs combine data from different sources including first-party data (owned by the brand based on interactions with its websites, apps and customer management systems), second-party data (similar data shared by partners) and third-party data managed by other parties such as ad networks, media owners and publishers (Facebook, Google and LinkedIn and publishers).

Audience data is based on cookies used by different systems and device IDs for mobile devices.

This visual from DMP advocate Eddy Widerker explains differences between 1st, 2nd and 3rd party data well.

A DMP seeks to be the ‘holy-grail’ for using audience insight to deliver more relevant, better targeted media. This visual again, created by Eddy Winerker summarizes the targeting options.


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