A Data Management Platform (DMP) is a powerful tool that, when implemented and used correctly, will help you uncover deeper insights into your customer segments. You may be wondering: exactly what type of information does a DMP offer and how can I leverage that data to hit my KPIs? Over the last few weeks, our DMP blog series has covered topics like “The mighty DMP: nine misconceptions” and “DMPs vs. DSPs: why you need the former”, as well as a “DMP 101”, a webinar hosted by Lotame that I’ll be guest-starring in this coming Wednesday (register here).
In this blog, I’ll dive a little deeper into what you actually get out of a DMP.
Here’s an example of what a DMP can show you:
DMPs build these profiles based off of information collected via data collection tags that can be implemented by your tag management system. The tags and taxonomy are set up during the implementation phase. Generic tags collect basic high-level information about the user, like pages they visit or what type computer they are using. From there, the DMP will do an ID sync in order to layer on very customized tagging to collect more complex information.
We can bucket the information DMPs provide into the following categories: Demographic, Financial, and “In Market For”:
“In Market For” is a massive category. The buying interests and segments vary drastically based on industry, product, etc., so the examples provided won’t even begin to scratch the surface of what you can find out. However, this should give you an idea of the depth and granularity of the data. By collecting and organizing your own first-party data and layering in the DMP’s third-party data, which is based off of hundreds of thousands to millions of people and thousands of attributes, the profiles created provide a deeper view of your target segments than you’d be able to get almost anywhere else.
You can break down your segments in a lot of different ways. For examples, for an eCommerce site, you can look at everyone coming onto the site as a whole, or you drill down to see the profile of someone looking at a specific product, like a classic Chanel purse.
At 3Q, we start by building segments based on our client’s funnel. Based on the eCommerce example above, we would look at everyone coming to the site, looking at a product, and adding to a cart; we’d also break out each stage of the checkout separately, and so forth. We’d see what that audience looks like as they get down the funnel – and how they change. We’d determine what people who purchased looked like so we could target more like them. We’d look at people who made it to the last steps but didn’t finish checkout.
Compiling a profile of each segment uncovers actionable insights, allowing us to target more people like the converter segment or make necessary adjustments in order to convert more users at each drop-off stage.
What this translates to is more efficient media spending at the top of the funnel and more movement at each stage thereafter, lowering cost of acquisition and increasing revenue within your key customer segments. However, it’s important to note that you can’t just turn on a DMP and have spit out exactly what you need to do to be successful. No platform will. A DMP will provide an amazing amount of information, but you will need people who are familiar with the technology and are really able to take advantage of the platform and the data that comes from it.
On that note, the next post in our series, “Taking on a DMP: what you need to know,” will cover everything you’ll need to be successful from implementation and beyond. DMPs are a gold mine for great customer insights, and with the right pieces in place, you will make an astounding amount of progress in better understanding and targeting your customers.
For even more information on how DMPs work and what they do, you can also check out our Ultimate Guide to DMPs. As you explore whether your organization is ready for a DMP, contact us with any questions you may have.