Developed by the entities Nelson and Oracle, a Data Management Platform or DMP can be defined as – mechanism of gathering organized or unorganized data, from a scope of internal or external sources. Then co-ordinate and store the data in a database for further use.

Forrester Research defined a DMP as a unified technology platform that intakes disparate first-, second-, and third-party datasets, provides normalization and segmentation on that data, and allows a user to push the resulting segmentation into live interactive channel environments.

DMP pulls statistics from various sources and allows organizations to define classifications based on multiple criteria, called “Audience Segment.” This audience segment is meant to deliver distinct marketing experiences because it provides excellent visibility about their target audience and ROI as well.

Advertisers and Agencies use DMP to create audience segments for their marketing campaign consisting of Display Ads, Video Ads, and even for Search and Social campaigns.

Using DMP marketers can scale audiences, and considerably improve campaigns’ performance by reducing wastage of ad.

Those segments can be applied to “re-targeting” campaigns later on.

Essentially, there are three types of data -

First-Party Data is any information about user/audience/customers coming to the website. It is collected directly from Publisher’s property. Since this is the most organic form of data, therefore in Digital World, we say that whoever has First-Party Data, is The King.

Second-Party Data is, someone’s enhanced first-party data, bought directly from the source so that it can be utilized for marketer’s need. As simple as that.

Third-Party Data is gathered by organizations (DMP Providers) from several sources. Then they sell it to other business owners, who can directly use them as and when they need it.

The primary and most critical point to be considered is that, making sure the DMP provider is 100% in compliance with privacy regulations.

Read More about User Privacy Regulations here.

Key Technologies -

DMP uses machine learning algorithms and big data analytics for profiling of customers and integrating data from various sources.

  • Big Data Analytics is a technology used for advanced analytics of online traffic and user behavior. It allows us to find the growing trends, conduct look-alike modelling, or analyses profiles of specific audience groups.
  • Artificial Intelligence and Machine Learning algorithms – This is used for integrating data from many data sets and for the segmentation of online customers. The algorithms define the interests and purchase intentions of Internet users basing on visited websites and online behavior.

Read More:

Once the data has is generated or collected by gathering several types of IDs from web cookies, it then goes through a "normalization" procedure. This procedure may primarily include -

  • Removing redundant or useless data to improve value and quality.
  • The different data sources will have their format of keeping it. So, secondly, data is then transferring to a uniform schema that can be used by anyone.
  • Lastly, data is then getting enrichment by adding additional data points, like geo-location and OS/browser info, Age, Gender, Interests, Purchase history, etc. (if not already present).

Why a client should integration with a DMP?

In the Ad tech industry, SSP (Supply Side Platform), DSP (Demand Side Platform) along with DMP are nowadays essential to be integrated with a Platform.

The SSPs connects with a direct website and allows targeting to another DSP and Ad Exchanges. When a DSP buys those inventories, and if the platform is already integrated with a DMP, then the advertiser can reach the relevant users, as DMP has stored the data with various segments.

SSPs offers various ways to reach the audience at different prices.

An advertiser buying those inventories after doing specific targeting matching with the DMP data, to have the most relevant ad. Once the advertiser won the placement, through setting the campaign via DSP, it displays or delivered the ad on the website.

Image Source:

Let’s take the example of a Car company. They want to run a campaign through an agency.

If the Car company likes to reach the audience of only those websites, who have only automobile-related content on their website, secondly, the desired age of the audience is 25 to 45 years.

The agency will then check the availability of relevant audience data in the DMP. After analyzing the data, the Car company will be able to run campaigns, displaying ads on related websites.

They’ll be reasonably satisfied with the outcome because they will be reaching out to the exact audience they wanted. The agency will be happy too, as they will be executing the campaign successfully utilizing DMP data.

Go ahead explore more, use DMP extensively to get more out of your campaigns!


Post Written By:
Priyambada Muduli
Ad-Ops Consultant
Kritter Software Technology Pvt. Ltd


Leave A Comment