Our new report titled The Role of DMPs in the Era of Data-Driven Advertising shows that data management platforms (DMPs) are playing an increasingly important role in supporting effective marketing.

The research was part of a new Modern Marketing Actionable Insights Series launched in partnership with Oracle Marketing Cloud. It aims to find out why companies are introducing these increasingly influential technology platforms and the challenges which prevent them being used to maximum effect.

Let’s look at some of the key findings from the report. 

The DMP Landscape

Increased usage of DMPs is a relatively recent phenomenon, with 58% of respondents saying they only started using a DMP in the last one or two years.

DMP usage

Use of DMPs has taken off more slowly in Europe compared to the US, with 35% of European respondents saying they only started using one in the last year vs. 19% for US respondents. 

DMP use

Overall the proportion of companies planning to increase investment in DMPs has doubled in the last 12 months, from 15% to 30%. 

Does better data equate to more paid media success?

In addition to the statistic cited in the title of this post, 68% of respondents say they have successfully used data to improve their advertising effectiveness. 

68% say they’re using first-party data to enhance their ad campaigns, and 67% are using it to improve their cross-channel marketing performance. 

DMP benefits

Clearly the respondents feel that better data does indeed lead to greater success, but they also highlighted a number of benefits specific to using a DMP.

The top three major benefits according to respondents are:

  • Centralised control and standardisation of existing first-party data (53%)
  • Using the data we already have for better email, web, social and content personalisation (51%)
  • Developing rich and actionable datasets across first, second and third-party data sources (46%)

Using DMPs to get advertising in front of the right people

The ability to track and target customers is important, but DMPs provide much more detailed customer journey information. 

This enables marketers to form lookalike cohorts of those who are currently strangers to the brand. These groups are ultimately more likely to respond
 to advertising than a lookalike segment based purely on demographics. 

Retargeting is another effective marketing tool, with brands reporting conversion uplifts of 200-300% with basic retargeting campaigns. 

Using DMPs, however, the opportunities stretch even further as the customer’s purchase intent is revealed through their browsing journey. 

To read the full report, download The Role of DMPs in the Era of Data-Driven Advertising

Jack Simpson

Published 16 July, 2015 by Jack Simpson

Jack Simpson is a Writer at Econsultancy. You can follow him on Twitter or connect via LinkedIn.

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Comments (4)

Jordan McClements

Jordan McClements, Owner at PPCNI.com

Has anyone used one of these and found them useful?
What sort of minimum ad spend are we talking before you should consider using one?
"in partnership with Oracle Marketing Cloud. " means it may not be 100% impartial?

about 3 years ago

Dipesh Shah

Dipesh Shah, Digital Consultant at Data Translators

As much as I think DMP is very exciting and what it can offer is endless but the question is how many clients are set-up for the DMP world?

So you will say the 3 steps of a DMP from a top level view is: 1) Collection, 2) Segmentation and 3) Activation. The problem I see many clients are not doing step 1 right and the core of step 1 is based around CRM data. From a few clients first party data I have seen I would not say that it's ready for the DMP world. Yes sample size is very small and it does depend on the type of client as well.

It will be interesting to see when Google launch their DMP offering how that works and how easy the integration will be with other Google products as well.

about 3 years ago

Linus Gregoriadis

Linus Gregoriadis, Research Director at Econsultancy, Centaur Marketing

@Jordan To your suggestion that the research is not impartial, this study is independently produced by Econsultancy and if you read the report you'll see that it gives a very balanced perspective on the benefits and challenges involved with a data management platform. As Dipesh implies, the technology alone isn't enough, and this is clear from the research.

It's quite hard to find brands who are willing to talk about their experiences with DMPs, though MoneySuperMarket was a good case study presented at the launch event for this research.

It's fair to say that spending on display advertising needs to be fairly substantial, although I'm not in a position to put a figure on it.

According to Christian Bartens from the analytics agency Datalicious (quoted in the report): "Say the minimum DMP technology investment is $100K for the first year, including services, let's further assume it delivers about 10% additional efficiencies for display advertising; that would require a minimum display media spend (that can be optimised via a DMP) of $1m. If you wanted to be able to save and not just make your money back but make some on top, then you'd need at least a display ad spend of $2m per year for a DMP to make sense. The numbers above are assumptions but the principle is right."

almost 3 years ago

Jordan McClements

Jordan McClements, Owner at PPCNI.com

@Linus. OK - apologies for being so cynical... Thanks for the info.

almost 3 years ago

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