What is a DMP: How This Technology Can Help Your Business’s Marketing Efforts(Last Updated On: December 5, 2018)
Technology, in general, is very complex. Data is a single unit of information that’s stored in a computer or mobile device, similar to an atom in our body; it makes up the whole digital network. Users input these data and billions are collected digitally all over the world through various algorithms and artificial intelligence.
Businesses nowadays, with the help of technology, could already gather specific information they couldn’t have done a few decades ago. Using this new-era tech, qualitative and quantitative data for marketing purposes are already within reach.
What is a DMP (Data Management Platform)?
Data Management Platform or commonly abbreviated as DMP is a centralized technology software system that collects, sorts and manages audience data for marketing-driven purposes. These data can be obtained from any source, gets filed into certain categories, and finally targeted to specific users through marketing channels to attain a level of marketing goals and to measure its performance. This platform will allow your business to gain access to and insights about their customer leading to strategized advertising campaigns and a potential increase in sales.
This platform uses data integration and user profiling technologies like big data analytics, AI and machine learning algorithms. These technologies are embedded in the data management platform to assess certain customer profiles and behaviors then creating advanced analytics for it.
As a business, having a DMP has its critical uses for your marketing efforts:
1. Data gathering and organization.
Data about the users and their activities will be gathered from various online and offline sources. These data will then be organized and managed to create a custom segmentation of your customers which will help you in strategizing a targeted campaign. Here are examples of sources where your data are extracted from:
- Mobile Web
- Mobile Applications
- Social Networking Sites
- Videos online
2. Building your audience.
A DMP can help your business on how to build an audience; it is crucial to reach out to the right people to make a campaign effective. In building your audience, you can personalize the categories they belong to, and which attributes matches which category. It’s like creating the ideal customer that fits into certain criteria and tailor a campaign specifically made for him.
Consider the following attributes to create a market segmentation:
- Demographics – these are the personal characterization of your audience including but not limited to age, marital status, religion, age, race, gender, ethnicity, education, occupation, and income status.
- Geographic – these segments are based on your audience’s geographical location like the continent, country, city, state or province, postal codes, towns, street, etc.
- Psychographics – these are much more complex than the demographic and geographic segmentation, these are behaviors and internal feelings your audience possesses including their lifestyle, personality, social class, preferences, involvement, and values.
3. Activating your data
Once your data is ready, you could already activate it through different media channels. You make your data to work for you.
Produce your marketing and advertising materials based on your gathered data and analyzation on how to convert those data into something that would catch your market’s attention and potentially create an increase in inquiry and sales. You may have to make your employees work extra hard in your office since proper planning, and strategizing is needed for your campaigns to be productive and to hit the right audience.
4.Optimizing your result analytics
After the end of every campaign, you should always have a report on its performance. This is where result analytics come in; it shows you in what area your campaign worked for your audience and which didn’t.
A data management platform will guide you in redirecting your targets or improve your strategies, in this way you will be able to have more effective ads on the next run. Digital marketing is a form of trial and error, and success doesn’t happen overnight, you have to be patient, and those wanted results will come eventually.
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Data is a vital part of any business, it keeps the system going. These data control the creation of business structures, culture, and marketing initiatives. The data management platform is your tool to make the data available for your business to boost sales or improve on products and services. It is a developmental technology that if used right could lead you to the best marketing strategy.