Businesses today are sitting on lots of data; offline as well as online. And there’s no doubt that they are keen to leverage this available data to scale up their marketing and business RoI. However, the utilization would only prove effective when businesses get all of their siloed data at one place.
And how is that possible?
The answer is Data Management Platforms – The technology that not only brings together an organization or brand’s own data but allows the addition of third-party and partner data in order to improve the RoI from organization’s marketing initiatives.
This blog post would focus on the benefits that any Advertiser and a Publisher can derive by leveraging data-driven marketing through the use of a Data Management Platform (DMP).
DMP is the right choice for Marketers who:
-want to target campaigns to improve response and conversion rates, in a more timely and productive way
-want to control their advertising costs, and also improve their marketing ROI
-want to target a niche audience, but at a large scale
Apart from the above-mentioned opportunities, there are several benefits that a DMP offers to the advertisers, let’s explore them:
1. Improve Campaign Yield
DMP offers robust campaign monitoring capabilities and tools for improving campaign yields. With the right insights, you can quickly identify:
-Key performance drivers for individual campaigns
-Best performing audience segments
-Driving up / dragging down behaviors and performance within segments
-Which data sources (first-party, second-party or third-party) are driving the best results
Equipped with such valuable insights you can refine your campaigns, scale them, optimize them, and increase ad performance by targeting the right ad to the right prospect.
2. Improve Campaign Spread
Identify users as they move across different devices for the purpose of displaying them personalized content. This increases your overall campaign spread by enabling you to reach your most valuable audiences in the right place at the right time for increased engagement. For ex: if a consumer viewed a pair of shoes on a website on their mobile phone, then the shoe company can display them a retargeted ad on their desktop.
3. Get To Know Your True Customers
By collecting and analyzing data from a range of sources, you get to know who your true customers are. Discover new trends, spot and fix conversion drop-offs, and better understand your audience and their behavior to build up audience history. By evaluating past purchases, what visitors click on, their preferences, and how well they respond to certain offers you can create customer segments and leverage it for recurring campaigns which will help to increase sales.
4. Personalize Ads And Content
Advertisers desperately find ways to personally connect with customers online, which is why they are becoming profound to leveraging technology for, personalize ads and content to cut through the digital maze. DMP offers consumer insights which can be applied to adjust your site content in several ways ensuring that you show the right ad or content to the right audience and increase your campaign CTRs.
5. Create Unified Audience/Customer Persona
DMP allows the advertisers to leverage 3rd party data to enrich one’s own 1st party data from multiple sources like a website, e-commerce channel, campaigns, CRM, retail databases etc. and stitch them into singular audience profiles. By creating a single customer view DMP allows the advertisers to directly identify and understand their users – their behavior, and how they interact with their brand.
A right DMP would help you build your own custom audiences, trigger them in your programmatic campaigns and gain new understandings about your audiences.
How Publishers Can Benefit From A DMP
A publisher’s data no longer needs to sit and operate in silos.
For long, DMPs have been associated with companies and vendors on the buy side, i.e. DSPs and ad agencies. But now they are becoming equally popular on the supply side, precisely with the publishers.
In this new era of marketing campaigns where quality engagement and customized brand experiences have become priorities for the advertisers, using audience data to deliver such expectations have become all the more necessary for publishers.
Through a DMP, a publisher gets the capability to centralize the data, manage customer’s databases, analyze their interaction, inform content management systems, and power advertising platform.
DMPs Benefits For Publishers
1. Increase Campaign Revenues and eCPMs –
The key for running successful marketing campaigns is by using data assets to inform a user acquisition strategy. DMPs allow the publishers to identify high-value users and run lookalike ad campaigns to appeal to more of these. The end result is more targeted marketing campaign than plain vanilla placement and context based ad positioning. Publishers can command a premium due to a more targeted approach which results in a more engaged user base and increased revenues and eCPMs.
2. Win More Business
DMPs offer publishers the capability to integrate data from any source, make sense from it, and use it for a diverse set of applications. This includes, audience targeted advertising, content personalization and cross-screen messaging. By uniting 1st and 3rd party data, a DMP helps you discover profound insights into visitors through your digital properties, which when passed on to the sales team helps you win more business.
3. Break New Categories
DMP is the new trend to break new categories when it comes to searching for prospects who may be interested in your product\service. DMP has third-party data sources and by integrating it with this platform you can acquire loads of anonymous data to realize higher precision and scale with your targeting campaigns. When 3rd-party data is purchased, it complements and enhances the first-party data of the business, allowing the publishers to reach more of their targeted audiences, which further means more engagements and successful campaigns.
4. Sell More Inventory
Building audience segments is one of the key benefits of using DMPs; these segments can be further used for a range of diverse revenue-boosting activities – including audience extension.
Audience extension typically involves the publishers collecting their valuable first-party data and segmenting their visitors into audiences. To carry out audience extension, a publisher needs to first gain access to more high-value inventory from other publishers. Further, the publisher can combine their own inventory with that of the others and sell it to advertisers via direct campaigns. This allows the publishers to earn more revenue from their visitors.
5. Improve Performance
With the analytics tools in DMPs, publishers can create look-alike and act-alike audience segments, this enables them to increase scale across their digital properties. These audience segments can be further taken to run extension buys across the broader web. In addition, to creating scaled look-alike audiences, DMP can also make retargeting truly smart. Publishers can easily implement customized re-targeting campaigns created on specific activities and behaviors taken on or offline.
6. New Ad Products
In addition to cross-platform audience monetization, DMPs also play a very critical role in helping publishers introduce cross-device products. Cross-platform strategies demand the capability to identify relationships between different devices. DMP combines data derived from device signals, consumption signals and visitation signals with the existing pool of intelligence to produce true cross-platform audience intelligence. For the publishers, this means increased CPMs and sell-through rates on desktop and mobile.
7. Personalize Content
To improve the efficiencies throughout the user journey, customizing the content based on user attributes and characteristics have become the need of the hour, which further improves the overall performance of media when compared to universal messaging.
Publishers always keep looking for effective ways to increase engagement, improve participation, and multiple conversions, the key to which is through content personalization. This is where a DMP plays a significant role; by allowing to make real-time decisions based on audience data including age, gender, income, interests, and the last interaction, it helps the publisher to take content and creative decisions and improve the performance of their digital ad campaigns.
DMP is all about making data “Actionable”. And while making it actionable, a good DMP enables you to have a conversation with your audience. It powers publishers, marketers, advertisers, and agencies to collect, organize, and activate data for audience-targeted marketing efforts which result in multiple benefits for the business. Since this article gives an overview of benefits that a Marketer and a Publisher can derive out of a DMP, you can schedule a free demo to get a detailed understanding of a DMP.