Tencil Trends: An Introduction to DMP’s

BACK TO BASICS SERIES by Francesca Gold

Understand the DSP and SSP aspects of programmatic advertising but unsure as to where user data is collected or even stored? Read on to find out more about DMP’s.

What is a DMP?

A data management platform (DMP) is a platform used for collecting and managing data. This can allow the DSP (demand side platform i.e. advertisers) to identify audience segments, to enable the specific targeting of users during digital campaigns. This information is collected from the users’ data, such as sales or site visits.

What are the main functions of a DMP?

There are three main functions of a DMP- to import data, find segments, and send instructions. Firstly, to import data the DMP information from the users’ online and offline data and third party data- all of this is imported on to the platform. Next, the DMP locates segments. Once this user information is implemented, the platform searches for segments. These segments will be based on the users’ digital behaviour and defined by their needs. For instance, an advertised may want to target a specific user interest or demographic, so these segments aid this. Finally, the DMP will send instructions to help users utilise the segments and data that have been created.

DMP or DSP?

DSP’s sit on the advertiser side (SSP is the publisher side) and are platforms that enable the buying of advertising, based on the information supplied by the DMP. The DMP will provide vital and helpful information surrounding the user; however, this information doesn’t help with the actual buying and delivering of the ad- the DSP and SSP does this. To add to the confusing terms, the emergence of CDP (customer data platform) is occurring also. However, this is typically a marketing solution rather than advertising.

With the advancement of technology, however, the platforms are beginning to merge and blur. Many technology providers of DMP’s also now provide a DSP too. With the fading of cookies and increased data regulations, we are beginning to see more transparency with users data and how this is used.

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