You don’t say “pause,” and just to be clear, DMPs aren’t only for B2C organizations that spend millions of dollars a year on advertising; there are plenty of use cases in the B2B world.
Data Management Platforms (DMP) are becoming more popular in the B2B world, because the lines between B2C and B2B technologies have blurred. We first saw this with marketing automation, when B2B marketers realized they could personalize communications at scale. Instead of orchestrating millions of communications like B2C organizations, instead, B2B marketers focused on automating smaller audience touch-points.
Without getting too far off track, lines between martech and recruitment technology are also being removed (previous post). When you break it down, it’s really just person to person (P2P) communication. Any technology that’s designed to create communication efficiency should be leveraged across various departments: marketing, sales, talent acquisition, finance, etc. You should be focusing on what the technology is designed to do and then applying those capabilities to solve challenges – anywhere.
Before we get too far, let’s step back. What exactly is a DMP?
Data Management Platform or Data Warehouse?
A DMP is a type of data warehouse, but it’s important to make a distinction. A data warehouse (DW or DWH), also known as an enterprise data warehouse (EDW), is a system used for reporting and data analysis. It is considered as a core component of Business Intelligence environment. DWs are central repositories of integrated data from one or more disparate sources. While business intelligence and reporting are the main objectives for data warehouses, more efficient ad execution and robust segmentation / personalization are the key objectives for DMPs.
- Segmentation and personalization: what B2B marketer doesn’t want to better segment and personalize?
Initially, the main objectives of DMPs was to execute an ad campaign. Segment your audience and then personalize an ad. With programmatic ad buying, advertisers are able to extend campaigns across a huge number of sites and apps through ad exchanges, ad networks and demand side platforms (DSPs). DMPs help marketers connect audience and performance data across all of those sources.
A DMP enables you to build audience segments where the criteria can include customer information, demographics, household income, past browsing behavior, purchasing information, location, device, etc. Then it can analyze how those segments performed. Based on that analysis, the campaigns can be continually optimized to reach those audience segments that perform best.
If you are a B2B marketer that doesn’t spend a lot in advertising, a DMP can still be used to optimize email, social, SMS, or almost any other campaign that your heart desires. In fact, below are five other areas a DMP will impact.
5 B2B use cases for a DMP
Site Optimization: use first or 3rd party data to determine customized content for different consumers when they come to your site.
Retargeting: easily implement customized re-targeting campaigns based on specific activities and behaviors taken on or offline.
Prospecting: seamlessly integrate with 3rd party audience data source to acquire anonymous data to achieve higher precision and scale with targeting campaigns.
Audience Intelligence: contrast your site audience against 3rd party data sources to learn more about specific audience attributes to target more likely converters.
Better ROI: use centralized media performance analytics to determine which audience performed and where to double down.
A DMP for all:
DMPs are for all organizations that want to better understand, segment, and communicate with their audiences, while also spending ad dollars more efficiently. – Me
Old B2C use case (ad optimization)
DMPs are the glue that holds all of a marketers key advertising data together, providing one comprehensive platform to help marketing organizations take control and make sense of their private 1st party data, achieve world class audience segmentation, reach targets everywhere and create a closed-loop feedback for optimized media planning.
P2P use case of today
DMPs connect all relevant customer data, so organizations can leverage their 1st party data to create meaningful segments, discover correlations through unknown audiences to better understand customer/prospect attributes, and optimize each customer experience. Additionally, you get a robust analytics platform so you can continue to refine your communication strategy, across all channels.
And you thought a DMP was just for ad optimization? It is…pause…NOT.
*if you missed the humor in the “not” comment’s please check out this video: (YouTube)