DMP Demystified Whitepaper BlueKai
DMP Demystified Whitepaper BlueKai
DMP Demystified Whitepaper BlueKai
Data
Management
Platforms
Demystified
What is a DMP?
Do you need one?
Find out how DMPs can help you
achieve unprecedented targeting
precision and scale across all of
your online advertising programs.
Executive Summary
The term “data management platform” is tossed around lightly
by many advertising technology providers today, but true, robust,
scaleable DMPs are few and far between. In this whitepaper,
marketers and agencies learn:
• What is a DMP?
• Do you need a DMP, what should you look for and how do you
implement one?
What is a DMP? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
First Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Implementing a DMP . . . . . . . . . . . . . . . . . . . . . . . . 23
Common Pitfalls . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Introduction
But collecting, analyzing, managing, and acting on this first-party and third-party data
is a complex challenge. As an advertiser, agency, or publisher, you need the right tool
to manage your critical audience data assets. If you want to truly understand your
customers, you need a Data Management Platform, or DMP.
You’ve probably heard a lot about Data Management Platforms, but what exactly
are they and do you need one? This whitepaper will present a detailed look at DMPs,
providing insights into how they work, what they’re used for, and what results you
can expect.
At their core, DMPs are buyer-side platforms that allow advertisers and agencies to
take control of their own first-party audience and campaign data, and compare it to
third-party audience data, to make smarter media buying and campaign planning
decisions. Using a DMP, advertisers and agencies can slice and dice their own online
and offline first-party data to create audience segments for display, search, video, and
social campaigns; apply it to ad campaigns targeting audience across the purchase
funnel; and get visibility into the ROI each campaign delivered for each segment.
DMPs also allow marketers to pull in and analyze all audience data (including
third-party) – presenting a 360-degree view of how campaigns perform against
specific target audiences.
A DMP can help advertisers and agencies solve their most pressing challenges.
By putting audience data at the center of all their online advertising programs,
a DMP helps advertisers and agencies answer the following questions:
A DMP
Overview
7
What is a DMP?
Simply put, a DMP forms the backbone of all online advertising operations for an
economy that has increasingly become more digital.
While several technology companies claim to provide DMPs, a “real” DMP provides
marketers with centralized control of all of their audience and campaign data, helping
them manage and analyze this data to craft, target, and optimize campaigns that reach
more of the right people and drive improved ROI from their media spend.
A DMP must be able to not only analyze a user’s first-party online and offline data,
but also pull in data from third-party data sources to give you rule-based control over
audience definition and ad distribution to DSPs, ad networks, ad exchanges,
and publishers.
• Empower my teams to buy audiences with • Mine my own audience data from my site
minimal waste and scalable insights to get an enhanced understanding of
• Test offline models online my customers and to improve campaign
VP OF MARKETING
on my site on my site
• Ensure the security of my site for all • Enable a support
customers team to quickly
• Own my own data and control exactly who address QA
has access to it issues
• Minimize amount of tags on my pages
• Analyze site traffic and patterns to get
insights into customer interaction
DMPs
- A Deeper
Dive
14
What main features should your DMP offer?
Every DMP should offer a full-featured set of components that allow marketers to mine
their own first-party data to get a deeper understanding of their customers and make
more accurate audience buys. A DMP platform should allow you to “segment once,
target anywhere” – leveraging existing CRM and LTV strategies to make real-time and
long-term campaigns decisions. Here are five features every DMP should offer:
1. Data collection
Every DMP should allow you to easily collect your first-party audience data
+
in one place. This is usually done by placing a single tag on your site that
brings all of your first-party data into the DMP. Your DMP should also allow
you to import data from third-party data providers and other players in the
online advertising ecosystem, so you can compare these data points against
your own first-party data in one centralized place. Make sure you can also
import ‘offline’ data from your own CRM systems, so you can analyze in-store
behaviors and past purchases and target users anonymously online.
2. Data classification
Once you have all your first-party audience data in one place in the DMP,
it should allow you to quickly organize this data into taxonomies. How you
organize the data will depend on your business. An e-commerce site might
use a DMP to classify purchase data into descending taxonomies such as
clothing, kids, boys, shoes, sneakers, etc. Classifying your site data into
taxonomies like this is the first step toward building distinct audience profiles.
3. Data analysis
Once you’ve classified your first-party data into taxonomies, you can begin
to analyze it to more clearly understand customer intent. By analyzing data
about visitors’ past purchases, clicks, preferences, and propensity to respond
to certain offers, you can begin to use these insights to create specific
customer segments.
5. Scalability
Today most companies face a data deluge. From audience data, CRM data,
campaign data, third-party audience data and beyond, marketers and
publishers have millions of data points at their disposal. A DMP must be able
to scale to millions of data points and analyze all of these simultaneously to
deliver critical insights.
Tag Management
This feature enables marketers to actively monitor all of the tags that
fire off of their sites, providing a robust interface for controlling secure
data transfer, protecting latency, and monitoring tags. Advanced tag
management should also enable marketers to set up a spectrum of
privacy and control measures for data access and sharing, provide the
ability to categorize and assign varying levels of rights to advertising
partners. Tag-based audience management also enables users to
consolidate disparate audience data from multiple sources into one
private hierarchical data taxonomy. Finally, look for features that will
enhance your users’ experience including the ability to monitor pixel
latency with policing features, so you can leverage complex logic that
turns off vendors who are slowing down page loads.
Audience Segmentation
You want the ability to achieve world-class audience segmentation by
leveraging your own private first- and third-party data assets. A DMP
should include a dashboard that allows marketers to “slice and dice” their
first-party data by taxonomy, segment, campaign, and/or ROI outcomes
compared against third-party data. Advanced audience segmentation
features go beyond simple targeting, enabling you to create thousands
of highly-relevant segments within the DMP to reach audiences with
the right message at different stages of the purchase funnel. These
Media Integration
An advanced DMP allows marketers to easily share their audience
segments with ad networks, trading desks, portals, and DSPs to serve
targeted ads and reach audiences real time. By using your DMP to safely
and securely share your data with these partners, you can “plug and
serve” highly targeted ads to your pre-defined target audiences across
the web. Your DMP should also enable you to seamlessly and efficiently
share your audience data with your agency partners who make media
buying decisions.
Campaign Analytics
With all this critical audience data in your DMP, you need an easy-to-
use tool to understand it. An advanced DMP should provide one single
dashboard where you can measure and compare campaign performance
for specific audiences across digital channels (including display, video,
search, etc.) – replacing manually-aggregated spreadsheets and reports.
It’s critical this dashboard be easy to use for marketers – not made for
IT people – so you can clearly see campaign performance and optimize
media spend based on your findings.
Audience Analytics
Aside from just seeing how campaigns are performing, an advanced
DMP should show you how your audiences are performing. Your DMP
dashboard should provide clear insights into how any audience segment
is performing at any given time. You should also be able to measure how
specific audiences interact with campaigns on each channel (display,
video, search, etc.), so you can see which channels deliver the highest
ROI for specific segments. Your DMP should enable you to generate
reports showing all data attributes associated with a specific audience
from all available data sources – so you can engage in new audience
discovery, ongoing audience optimization, and expansion of your
campaign reach to new segments.
Getting
Started with
a DMP
20
Now that you’ve decided a DMP is right for you,
it’s time to get started. Implementing a DMP
should be simple, as most DMP platforms are
SaaS-based and require just a tag or two to be
installed on your site. However, there are some
critical steps you’ll want to consider before
diving into the DMP game.
INTEREST CONVERSION
Merely interested in your Has purchased the
product/service, such product/service
as reading an article or or submitted their
watching a video related contact information.
to your product/service.
INITIATION
INTENT Is about to complete a purchase,
Has the intent to buy, such having added the product/
as viewing a product page, service to their cart, began to fill
conducting a search, or building/ out a lead gen form, etc.
customizing a product or service.
What is a taxonomy?
A data taxonomy is a hierarchical visualization of your
audience data. It’s essentially a site map for organizing
all of your data assets
vs. web content.
For example, an
e-commerce marketer
may organize their
high level taxonomy by
product category and
products.
Inflexible Technology
If your DMP solution requires you to sign in blood when it comes to
setting the structure of your taxonomy, the DMP will inevitably turn
into an expensive paperweight that limits your marketing team as
your business expands and your marketing strategies evolve. From
the beginning, make sure your taxonomy structure is as flexible as
a yoga instructor with the option to change the data mapping (e.g.
productName=Basketball_Shoes now gets bucketed into Active Apparel
rather than Sports Equipment) as well as the physical structure of the
taxonomy (e.g. moving, deleting, or renaming nodes).
Spreadsheet-Based Analytics
A robust DMP solution will include flexible reporting and analytics
dashboards that enables real-time data computing and audience
intelligence. DMPs should have real-time computing capabilities that
allow you to store grouping and renaming of placements or creatives,
save custom reports that are automatically updates, and create
flexible custom metrics that are tailored to your needs. Do not accept
complicated spreadsheets as a substitute for sophisticated data
analytics.
• Need to strike net new business deals with third-party data providers
• Need to implement one-off technical integrations with multiple third-
party data providers
• Additional third-party data cost hurdles
• The ultimate inability to integrate with a valuable third-party
data source
A Flash-in-the-pan DMP
The DMP market is being flooded with new players. Analyze the
business model, the funding, the reach, the services and execution, and
brand strength of each DMP provider and make sure you are confident
they will still exist 5-10 years from now. It is also important to examine
the vision of the company and determine whether DMP is a key focus or
an afterthought.
DMPs are the glue that hold all of a marketer’s key advertising
data together, providing one comprehensive platform to help
marketing organizations and their agencies take control and
make sense of their private first-party data, achieve world class
audience segmentation, reach targets everywhere and create a
closed-loop feedback for optimized media planning.