Data Management Platforms (DMPs) have been gaining more popularity over the last few years, and rightfully so. They hold the power to uncover vast amounts of hidden potential within your mountains of data. Some of the key benefits include:
- Unifying data across platforms
- Scaling audiences
- Driving engagement
- Reducing ad waste
But not every company is a good fit. How do you know if yours is ready? I’ve created a general set of guidelines that should help.
A DMP is right for your company if you can:
- Specify use cases for all stakeholders in the company
- Gain cross-departmental buy-in
- Track the same conversions that success is judged on throughout the company
- See at least ~200 conversions for your key KPIs in a month
- Accept the findings. The data may reveal some surprising findings about your audiences. You need to make sure your team is willing to change strategies based on what you discover
Does this sound like your company? Congratulations! Your company is a good fit for a DMP. Check out our white paper, To DMP or Not to DMP: A Complete Guide, which contains a section on choosing a tool, and a checklist of what you need to be successful. If the above qualifiers don’t sound like you, continue reading below to see which of the next two categories you fall into.
A DMP is not a good investment for you right now if:
- You are looking for a tool to automate media buying. Turn back now! You are actually looking for a DSP (demand-side platform). These acronyms frequently get confused.
- You don’t have a tag management system and can’t implement one
- You don’t have enough traffic and conversion volume (<200 conversions per month) for the insights to be statistically significant and impactful
- You do not have interest in segmenting your campaigns by audience types or personas
- No department is willing to take ownership of continued DMP maintenance
- Team members are very set in their ways. I’ve seen teams that receive some counter-intuitive information and fight the data rather than trusting the findings. If your team is unwilling to be open-minded, you will likely miss out on some of the amazing insights a DMP has to offer.
- You are unable to front the start-up costs frequently associated with DMPs
If the above descriptors sound like you, you probably aren’t ready for a DMP. That doesn’t mean you won’t ever be ready, but the ROI will be very unlikely to translate based on the time and effort you’ll put in compared to the resulting benefits. However there is a third category that you could possibly fall into. Read below to see if you could still be a good fit for a DMP, given the right outside support.
A DMP could be right for you with agency or 3rd party assistance if you:
- Do not have the technical expertise to implement and support a DMP
- Do not have the expertise for ongoing management of a DMP internally
- Do not have dedicated resources to work with the data for analysis and ongoing segmentation/testing
- Want to cut down the deployment period
- Have a plan for how to use a DMP to improve certain digital campaigns, but want to apply its use more broadly
- You don’t have a tag manager in place and want to get started more quickly
- Want to avoid high start-up costs and instead opt for a pay-for-what-you-eat cost structure
If you fall into this category, download our white paper to gain clarity around how to evaluate DMP platforms and learn the benefits of working with a 3rd-party agency.
Have additional questions? Contact our Decision Sciences team to find out how we can help you get started.