Marketers today need a martech stack to run their digital marketing campaigns and realize their successes through several analytics. They require a platform that would assist them and have a grip on the various customer data available.
So, that they can utilize that information effectively and target the right audience with the best offers.
These tools are data management platforms, also known as DMP. This tool organizes enormous amounts of information and Demand Side Platform (DSP), which analyses DMP and utilizes that information to make a bid and place the ads. A brand needs both DMPs and DSPs to witness a thriving digital advertising ecosystem.
So, What is a data management platform?
Earlier, the advertisers used to face a lot of hurdles and challenges for collecting information about their target audience. So, in this way, the internet and cookies were born. But now, to get constant real-time information about your prospects, you need DMPs that analyze your first-party, second-party, or third-party and derive insights from it.
DMP is also known as the data warehouse of data. It collects the firehose of data and transforms into useful and understandable insights. DMPs absorb all kinds of data a brand has, which can be survey responses, customer profiles, and social media engagements. It can also sync your second and third-party information from the data suppliers.
With DMP, what actually can a brand benefit?
- Analytics and Advanced audience segmentation
- Brand refinement
- Content personalization
- Website, app analytics, and social media
As a whole, a DMP can provide you with a higher and more understanding of the customer’s minds, which can eventually lead you to have a more solid marketing strategy.
While a DMP provides the data information, a DSP must make better advertising purchases for you.
Now, What is a demand-side platform?
The internet is vast, and it is full of websites, social media, message boards, and many more where your audience surfs. Therefore it is not feasible for a human to track down all the activities of a user. Hence, the demand-side platform comes into the picture.
DSP is software that helps you have all the useful information you need to work with. A DSP makes use of the insights and data sets derived from the DMP and lets you bid on digital media advertising slots.
DSP uses real-time bidding, which connects to the existing ad exchanges and Supply Side platforms (SSP). So, when a DSP is integrated with the right amount of information by DMP, it helps you to get your digital ads to the right people at the right time.
And everything takes place automatically. A competent DSP will let you analyze your advertising results. So, that you can tweak your advertising and make some more revenues.