A Data Management Platform (or DMP) collects non-personally identifiable information (non-PII) from different sources (mostly 2nd and 3rd party data, but also 1st party data) and enables marketers and advertisers to categorize this information into different segments and eventually target their campaigns to the right audiences.
For those who aren't familiar with the different types of data, here's a short reminder:
- 1st party data is data you collected directly from your audience, like for example CRM data from your customers or data gathered from analytics platforms and social channels.
- 2nd party data is basically someone else's 1st party data. The seller, mostly a partner organization, collects its own 1st party data and then shares this data for a certain fee.
- 3rd party data is mostly purchased from large data aggregators. Those companies usually aren't the original owner of this information, but buy these big data sets from publishers and other data owners.
A DMP uses 3rd party cookie IDs to identify and track online behavior of web & app visitors and centrally store this information. The DMP then builds profiles based on these IDs alongside demographic data and other centralized information. As mentioned above, only non-personally identifiable information is captured in the DMP, which means that the information can’t be de-anonymized because of legal restrictions on the use of 3rd party
Their ability to manage large sets of data and create high-value audiences makes DMPs the ideal tool for advertisers and marketers. When implemented alongside a Demand Side Platform (DSP) for example, they are able to target their ads in the most efficient and accurate way and optimize campaign performance. Therefore DMPs are an essential tool for publishers, media houses and e-commerce. DMPs are also great for lookalike modeling.
Adobe Audience Manager, Salesforce Audience Studio (previously Krux and Salesforce DMP) and Oracle Bluekai are some of the most common Data Management Platform Solutions on the market.