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Data Management Platform – the force behind effective online advertising

By Valentina Zezelj on 26. January 2016.

People often consider ads a nuisance. They feel like they’re constantly bombarded with them, few of which actually suit their needs. But what if there was a way for advertisers to offer people a great user experience by giving them relevant content only and profit more at the same time? That is where data management platforms (DMPs) step in.


How does a Data Management Platform work?

Accessibility of modern technology has resulted in the greater use of Internet, creating an immense amount of user data.

This data contains information which can help advertisers deliver the right ad to the right customer. But before it can be used, it must be collected and analyzed.

A data management platform (DMP) partly functions as a data warehouse. It collects a great amount of first-party and third-party data taken from various sources and stores it in one place. These are the main two types of data which make marketers’ lives easier:


  • First-party data

This type contains information that companies gather directly from their customers. That is mostly data from CRM systems or various surveys, which includes information such as customers’ names, age, location, purchase history, etc.

Firt-party data enables publishers and marketers to learn about the trends and changes among their audience and monetize that knowledge by adapting to it.


  • Third-party data

This one can be purchased from data collection companies. It is mostly used for targeted marketing campaigns because it provides a more detailed information gathered from online and offline sources (e.g. public records, transaction data, surveys, etc.), which results in a better customer insight.

For example, it can help marketers target users who are interested in a certain product, but who also fall into a specific household income segment.

Combining these two can yield very powerful results for marketers. That is precisely why they are widely used by ad networks, DSPs and, of course, DMPs.

Besides collecting data, DMPs analyze it and create audience segments based on different user attributes. This enables DMPs to build individual profiles and discover users’ preferences.

A right combination of users’ attributes can reveal potential customers. An advertiser can predict the ideal user profile for a certain product. For instance, the intended audience could be teenagers who use tablets and live in the USA, and a DMP can easily find it.


You’ve got a friend in DMP

A DMP enables you to optimize the audience that needs to be targeted in a certain campaign and predict how successful this campaign’s results would be.

Therefore, when a new ad space becomes available, advertisers can decide on its purchase based on the previously set criteria and send the right message to the right people at the right time.

Although a lot of data can help you achieve better results, it can be difficult to extract only those pieces of information you actually need. Consider a DMP your little helper – it will do most of this hard work for you. All that remains is to relax and create a great campaign to attract your newfound audience.


Track and check – define your audience

Knowing more about customers makes it easier to sell more products to them. Assume that you are selling sports equipment. A DMP can help you find users that are interested in sports, browse exercises and use workout apps.

This allows you to create a more specific ad and display it to this very audience on relevant websites. You are able to target users more precisely, while optimizing your advertising campaign and financial investment at the same time.


Don’t get left behind

Modern technology has made it easier to follow users’ digital journeys. It only takes a good marketing tool to effectively convert the traces from that journey into a great business advantage.

That is why DMPs will certainly receive a lot more attention in the future and remain an interesting subject in the world of digital marketing.

With that in mind, it seems like it’s the perfect time to consider integrating a DMP into your digital marketing strategy to find out what makes it such a valuable asset for many advertisers.



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