Sunday 13 September 2015
What a beautiful time to be a marketer! Thanks to the current digital landscape, lots of user information is disclosed on the internet – information that can be used to find the perfect customers for your company. Sounds great, right?
Instead of guessing about the characteristics of our website visitors (like we used to in the good old days), we can now carefully select the individuals we want to target using cold, hard, online facts. Let’s hear a big hurrah for user data! But how do we collect and analyze this gigantic pile of data? And how can we make it actionable?
The answer to all these questions is: Use a Data Management Platform (DMP).
These kinds of platforms help marketing and advertising professionals get more value out of their data. Here are 5 reasons why DMPs can be your secret weapon:
#1 All your data in one place
One of the biggest challenges online marketers face is breaking through the silos of all the available data. You have data collected from your own website (1st party data), data you receive from partnerships (2nd party data) and data purchased from external providers (3rd party data). All these data points are very important for reaching your target audience. A DMP gives you the ability to combine all of your data sources, allowing you to map out much more detailed information about all of your users than relying on first party data alone.
#2 Personalized targeting
After all the data is collected, a DMP lets you create audiences to target the most relevant users. An audience is simply a group of users who share common data points. Instead of selecting users based on a single data point (e.g. has visited your website), DMPs connect multiple data points from a range of sources (e.g has visited your website AND made a purchase last month AND lives in UK). This sophisticated technology ensures that your segmentation will be more detailed and precise than ever.
#3 Actionable insights
Another great thing about DMPs is the number of possibilities for making your data actionable (i.e. putting it to work). After creating the perfect audience, you can push it to any channel that your DMP is integrated with. For example, you can send tailored messages to a specific audience with email marketing, DSPs (for digital advertising), social media and more. Isn’t that amazing? With just one platform, you can target all your user groups across a variety of channels and devices.
#4 Let marketers focus on marketing
With all the user data generated in the past few years, some marketers are starting to feel like data processing robots. They spend their days wading through huge amounts of information instead of being able to focus on marketing processes. Using a DMP can solve this problem by taking data analysis off your hands. It reveals the true potential of all the information you’ve collected, allowing marketers return to their core responsibilities.
#5 Maximize your ROI
Last but not least, let’s talk about costs. As we’ve already mentioned, DMPs can help you target only the users that are most relevant to you and your business. This enormously increases the effectiveness of your online marketing and advertising. DMPs let you zero in on the audiences that are most likely to convert, resulting in a higher ROI for all your activities.
Last but not least
How could I wrap up without mentioning privacy? The 5 reasons why a DMP can be your secret weapon are all true. But what’s it worth if you can’t safeguard the privacy of the very consumers you would like to interact with?
One last advice to make sure the 5 reasons will also work for you: think about privacy and how you would like to treat your customers to build a sustainable relationship that works for all parties involved.