Digital media is growing more and more complex by the day, and as a result, so is the data generated and harvested around the world. Experts in the marketing world are constantly on the lookout for new and innovative ways to purchase or sell data that can possibly benefit their systems and practices.
Doing this is becoming increasingly difficult, and has spawned a whole new industry for tech developers to sink their teeth into and enhance their service offering.
This industry growth has its benefits and downsides. Today, the need to log and bring shape to insights and data and collate it into a unified platform is the challenge developers are now facing. And the result of their troubles is called a Data Management Platform (DMP).
You can install Data Management Platforms in a variety of ways. For example, if you were learning how to build a website, you’ll then understand that you need to organize the first, second, and third-party data from your website ads. To do this, you would learn how to use a DMP to create more targeted advertising and content customization.
How Do DMPs Work?
A DMP is capable of harvesting and logging data in a range of different forms from a variety of different sources. They can obtain data from desktop and mobile web browsing, analytic tools, CRM’s, social media, and occasionally even from the radio or TV. The best DMP’s utilize the most advanced technology to delve deeper than the surface data, giving a more well-rounded data set that is much more useful to those who are harvesting it.
First-party data, i.e., the data collected from your own clients and customers, can be obtained directly from website interactions such as clicks and downloads. The data will usually include interests such as sports and hobbies, as well as their demographic location and data. This information could then be used to target a specific market, for example, dads who are 27-32 years old.
What Happens After the Data is Collected?
After the first-party data has been collated, it is then usually allocated a slot in a particular “hierarchy.” The rulings for this hierarchy are usually set by a user, or in some cases by deep learning and machine learning protocols and AI. In large data sets, the data may be divided up into numerous different nets and groupings depending on the criteria.
This data can then be categorized to give you a much more in-depth overview of your audience. As a result, you will be able to extend your reach and understand who your best customers are and their demographics.
How to Categorize your DMP Audience?
After putting in the hard work to collect and organize all of your datasets, it is time to create your different audience categories in order to identify what categories are the most valuable. Audiences can be categorized in the DMP using a range of sources, and using true-false logic, will allow you to create audiences that are as niche as you want them to be.
A dataset with more categories will be more niche, and as such, will include a smaller audience that requires more bespoken support.
You can use a range of different data points. Some of the most common ones are:
- Age
- Gender
- Location or region
- Interests
- Browsing history
- Household income
- Family size
- Opinions—e.g., all customers who like/dislike X
- Social networks—e.g., Facebook versus Twitter
The best option is to use the audience and demographics that you already know about to sort through your data. If you know that you get a good response from middle age moms with kids, these data points will be obvious. Once you have sifted through the apparent data points, then it may be time to do some split testing to experiment with different data sets.
Who Should Be Using DMP’s?
Almost every industry and business around the world can make use of a DMP. Marketers and digital agencies can use DMP’s to target and categorize audiences on a much more in-depth level. This deeper overview of your data sets can allow you to confidently start with high-cost marketing campaigns while reducing the risk significantly.
Chances are, if you have a website with a decent amount of traffic or social media accounts with large numbers of fans or followers, then you are probably sitting on a digital gold mine of data.
Even if you are not in a position right now to make use of it, it could be a good idea to start storing it for later, so that you can get started when you’re ready. If you are still new to the world of DMPs then I highly advise you check out this DMP Playbook to get a better insight into this complicated industry. Data is becoming the world’s new currency, and it is more than worth educating yourself about, so use this article to grow your knowledge and enhance your understanding of DMPs.
