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Data Management Platform: The
Complete Guide for 2023

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Author : Jyothish

AIMLEAP Automation Works Startups | Digital | Innovation | Transformation

Data Management Platform: The
Complete Guide for 2023

Favicon
Author : Jyothish

AIMLEAP Automation Works Startups | Digital | Innovation | Transformation

In today’s fast-paced business environment, data is becoming increasingly important.

Modern businesses use big data to improve decision-making processes, achieve operational efficiencies, and take action to increase revenue and profitability.

To reap those benefits, however, a company must conduct research and invest in a viable data management platform (DMP). The world of enterprise software is vast, and many organisations struggle to determine which software will help them achieve their objectives.

What is a Data Management Platform?

A data management platform is a software system  that gathers, stores and manages large amounts of data from multiple sources such as web services, mobile platforms and marketing automation platforms. It can be used to collect, organise, and activate audience data from first-, second-, and third-party sources.

Almost everything a customer does online, whether on a website or a mobile app, generates data that can be collected, analysed, and stored to help businesses make decisions and plan ahead of time. Using data management solutions, the data can be stored and used to develop effective business strategies and improve customer conversations. DMPs collect critical digital data, such as customer data, cookie IDs, mobile identifiers, and campaign data, with customer consent.

Working of a Data Management Platform

DMPs facilitate granular understanding of customers. Contextual, behavioural, and demographic data analysis improves interest and preference-based customer segmentation.

While visiting websites and browsing products, most consumers are unaware that DMPs are in use. These systems collect their browsing data and tailor advertisements based on the digital channels they visit.

A data management platform serves relevant advertisements to specific customer segments, such as travel enthusiasts. Anyone who visits a travel website or blog with a specific tracking code is classified as having travel-related interests in the DMP.

Most websites use tracking code to track and analyse visitors as they navigate the web. A DMP can even connect a person’s desktop browsing habits to their mobile browsing habits to provide a complete picture of their preferences.

DMPs organise relevant data to create anonymous customer profiles after collecting it. To protect sensitive information from marketers, the platform then cleanses and masks this personal data.

Benefits of a Data Management Platform

Data Management Companies

1. Increase Revenue

Getting the right ads in front of the right people boosts brand recognition, increases conversion rates, strengthens sales, and maximises profits.

A data management platform can determine which demographics and audiences are more profitable than others. Marketers can allocate more funds to similar audiences with higher conversion rates.

2. Run Cross-Device Campaigns

Cross-device targeting entails identifying and delivering advertisements to specific audiences across multiple devices. An omnichannel strategy enables marketers to reach users with consistent messaging across devices such as desktop computers, tablets, smartphones, and televisions. Create a multi-device experience that allows you to target the same audience with personalised advertising campaigns across multiple devices.

Match target audience profiles across screens in order to reach the right people at the right time and through the right channel. To increase engagement and ROI, provide a consistent brand experience across multiple devices using cross-device technology.

3. Financial Savings

Using data management solutions to reach the target audience replaces costly methods. Create detailed audience personas to target and retarget people who visit specific websites and make repeat purchases.

In essence, marketers can select buyers based on previous purchases to reduce ad waste.

4. Meet the Needs of the Customer

A one-on-one relationship with customers is advantageous for business. When used correctly, data can help bridge the gap between buyers and vendors by providing valuable insights. Businesses can discover which products and services their customers prefer, as well as how they respond to promotions and marketing campaigns.

5. Target Right Audience

As briefly mentioned above, a DMP can provide valuable insight into your target audience’s behaviour. Your users’ online behaviour and actions can not only help you understand the types of audiences you are currently attracting, but they can also help you make changes to target a completely different audience.

All raw data collected by a DMP is quickly sorted and segmented, providing you with near real-time analytics about your users. As your audience grows and you have access to more data, you can create more granular audience segments for more precise targeting.

However, keep in mind that the ability to scale your data and audience segmentation as your business grows is not a feature of every DMP and is certainly not something that any publisher can do on their own. While a DMP is necessary for storing and managing your data, working with a quality data management partner and platform will allow you to take your revenue to new heights.

6. Build Long Term Strategies

Data management solutions aren’t just for solving short-term problems, though they are excellent at that. They also assist agencies in developing long-term strategies. Companies can use them to solve immediate problems, such as excessive advertising spending or promotional content that isn’t reaching the intended audience. They can, however, use the information gleaned from those uses to help them achieve their long-term objectives.

When a business successfully optimises a campaign using their DMP, they can apply what they learned to future campaigns. The more they discover, the more effective their future campaigns will be. They will also achieve success faster and with fewer adjustments. This consistent progress can assist the company in meeting its long-term growth objectives.

7. Improved Data Security

Your company’s data is valuable information, and you must protect it. Even technology behemoths like Sony have fallen victim to hackers: a few years ago, they stole the bank information of over 77 million PlayStation users.

Data management solutions employ advanced data encryption technologies as well as strong security features. As a result, using those tools increases the security of your data while decreasing the risk of cybercrime.

8. Streamlined Data

As a marketer, you are most likely collecting a large amount of data from various sources. Email, e-commerce, social media, mobile apps, and customer loyalty programmes are some of the more popular channels.

DMPs collect all of that data and store it in one location, so that you get a unified view of your customers across screens and platforms. DMPs will process, organise, and prepare your data, providing a more complete picture and a better understanding of your audience, strategies, and efforts.

Having all of your data in one place allows your teams to work more efficiently. As a result, you will be able to make more informed business decisions in all aspects of your company.

Choosing the Right Data Management Platform for Your Business

When selecting the best data management software for your business, several factors must be considered to ensure that the platform meets your needs and helps you achieve your goals. Here are some key considerations when evaluating DMPs:

Factors to Consider While Selecting A Data Management Platform

Best Data Management Platform

Integration Capabilities

Consider the DMP’s integration capabilities with other marketing and advertising technologies, such as demand-side platforms (DSPs) and customer data platforms (CDPs). Make sure the DMP can integrate with your existing tech stack and provide a seamless experience for your team.

Data Sources

Consider the different types of data sources that the DMP can collect and integrate. Can it collect data from your website, mobile apps, CRM, social media platforms, email marketing platforms, and other important sources for your business?

Data Management Capabilities

Examine the data management capabilities of the data management solutions, such as data cleansing, normalisation, and enrichment. Is the DMP capable of real-time data processing? Is it capable of machine learning or AI to assist with data analysis?

Preferred Partner For High Growth

User Interface

Look for a DMP with an easy-to-use and navigate user interface. Consider how you intend to use the platform and how your team intends to interact with it. Check that the DMP has the features and functionalities required for your use case.

Scalability

Assess the DMP’s scalability and ability to handle large data volumes. Consider whether the platform can handle growth and scale with your company.

Pricing

Consider the DMP’s cost and whether it is within your budget. Check that the pricing model matches your company’s needs, and think about the potential return on investment (ROI) that the DMP can provide.

Support and Training

Look for a DMP that offers adequate support and training. Consider the level of support you’ll require as well as the resources provided by the data management companies, such as training videos, documentation, and a support team.

6 Best Data Management Platforms of 2023

Online, a wide range of data management platforms are available. We’ve compiled a list of the six best data management software on the market to assist you in selecting the best management platform for your brand’s needs.

Google Marketing Platform

Google Cloud offers a unified marketing platform that combines data management and advertising.

Google’s marketing platform is divided into two versions: enterprise and small business. Integration with Google Analytics and its integrated data management platform capabilities is available in the enterprise category.

Visualization, segmentation, reporting, and predictive analytics are among these capabilities.

Amazon Redshift

Amazon Redshift is a component of Amazon Web Services (AWS), a platform that offers cloud computing services on a subscription basis. It particularly, is a fast data warehouse that simplifies data analysis.

 You can set up and start using your DMP in minutes, and you can even try Amazon Redshift for free for few months before committing to one of their payment plans.

Lotame

Lotame is a privately held company that specialises in providing cutting-edge unstacked data solutions. Lotame Lab, Connect, and Data Exchange are integrated products on its data management platform.

 Lotame Lab is used for audience creation, scaling, and segmentation; Lotame Connect is used for customer data ingestion; and Lotame Data Exchange is used to purchase audience data.

 It takes pride in having an unbundled platform, which means customers only have to purchase what they require.

 It’s also worth noting that its platform is media-agnostic, allowing users to consume data from virtually any source.

Snowflake

Snowflake’s solution style is distinctive, as befits its name: data management as a service. Snowflake provides an infinite amount of computing power for an infinite number of users to assist you in obtaining the insights you require, regardless of the size of your business.

 Snowflake’s performance is exceptional; it can complete an entire set of monthly reports in 45 minutes, whereas it used to take two to three days. It even has its own patented architecture that separates storage and computing for faster, continuous analysis.

 Snowflake can support infinite concurrency due to its architecture’s ability to run multiple computing clusters concurrently without slowing down. Snowflake provides pay-as-you-go, upfront, and monthly pricing options.

Oracle BlueKai

Heavyweight database software Oracle Bluekai data management platform is part of Oracle’s Customer Experience (CX) solution.

 The Oracle BlueKai platform integrates seamlessly with Oracle database software, allowing users to link customer experience data with financial data.

 Personalization, segmentation, campaign management, customer acquisition, data activation, smart content, and customer intelligence capabilities are included in the platform, which can handle both B2C and B2B transactions.

Best Practices for Data Management

Once you’ve implemented a data management platform (DMP) for your company, it’s critical to adhere to best practices to ensure that you’re making the most of your data. The following are some best practises for using a DMP:

Ensure Data Privacy and Security

When working with customer data, data privacy and security are critical. Check that your DMP complies with data protection regulations such as GDPR and CCPA. Make sure your data is encrypted, and restrict access to sensitive information to only those who need it.

Define Your Objectives

Define your DMP objectives and align them with your business goals. This will allow you to concentrate on the data that is most important for achieving your goals rather than getting lost in a sea of irrelevant data.

Use Data to Drive Business Decisions

Leverage data to drive business decisions such as developing customer profiles, identifying target audiences, and measuring campaign effectiveness. Use the DMP insights to optimise your campaigns and personalise customer experiences.

Evaluate and Optimize Your DMP Usage on a Regular Basis

Evaluate your DMP usage on a regular basis to ensure that it is meeting your objectives and providing the expected ROI. Make necessary changes to your data strategy to ensure that you are getting the most out of the platform.

Integrate with Other Technologies

To create a seamless data ecosystem, integrate your DMP with other technologies such as demand-side platforms (DSPs) and customer data platforms (CDPs). This allows you to share data across platforms and gain a better understanding of customer behaviour.

Create a Single Customer View with DMP

Use your DMP to create a single customer view, which allows you to get a complete picture of each customer’s behaviour across channels and touchpoints. This enables you to provide personalised and relevant experiences to your customers.

Train Your Team

Train your team on how to use the DMP effectively. This will help ensure that everyone understands how to use the platform and is capable of contributing to data-driven decision making.

You can ensure that you’re using your data effectively to drive business success by following these best practices for using a DMP.

Future of Data Management

Several trends and developments are likely to shape the future of data management platforms (DMPs). Here are some possible directions for the DMP market in the coming years:

Future Of Data Management

Increased Privacy Concerns

As concerns about data privacy and security grow, DMPs may need to adapt to meet new regulations and consumer expectations. To ensure that customers feel in control of their data, DMPs may need to provide more sophisticated privacy controls and opt-in mechanisms.

Convergence with CDPs

Customer data platforms (CDPs) and data management platforms (DMPs) are currently separate technologies, but they may converge in the future. DMPs may become more customer-centric and provide deeper insights into individual customers, whereas CDPs may incorporate more data collection.

AI and Machine Learning

Customer data platforms (CDPs) and data management platforms (DMPs) are currently separate technologies, but they may converge in the future. DMPs may become more customer-centric and provide deeper insights into individual customers, whereas CDPs may incorporate more data collection.

Expansion into New Channels

At the moment, DMPs are primarily focused on digital advertising channels such as display and search. However, as new channels such as connected TV and digital out-of-home emerge, DMPs may need to expand their capabilities in order to support these channels and provide a comprehensive view of customer behaviour.

Conclusion

Effective data management assists your organisation in making the best use of critical information.

Apart from their strengths and limitations, DMPs can be an important tool for enabling more targeted and personalised ad campaigns. Many marketers already have them in their technology mix, even if they are unaware of it.

Everyone involved in ad tech now requires a data management platform. You can search for the various outsource data management service providers in the market. Then, by evaluating your DMP requirements, you can make the best decision.

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Jyothish Chief Data Officer

Jyothish - Chief Data Officer

A visionary operations leader with over 14+ years of diverse industry experience in managing projects and teams across IT, automobile, aviation, and semiconductor product companies. Passionate about driving innovation and fostering collaborative teamwork and helping others achieve their goals.

Certified scuba diver, avid biker, and globe-trotter, he finds inspiration in exploring new horizons both in work and life. Through his impactful writing, he continues to inspire.

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