The market for data-management platforms (DMPs) is growing. Those platforms enable marketers to harness their vast and growing repositories of user data by collecting first-, second-, and third-party data from disparate sources and combining it into high-value audience segments.
But what does that all really mean?
Consider an individual who has engaged with your brand. First-party data stored in your CRM system indicates this person is a loyal, high-end customer. Second-party data shared by a partner shows the person to be a frequent online shopper with a high credit score. Finally, demographic information collected from a third-party data provider reveals this individual is a man, age 18-35, with a household income under $100K.
A DMP collects this fragmented data and ties the attributes together under a single user ID, creating an enriched user profile that facilitates personalization and targeting.
DMPs are important components of the data-driven marketing landscape and provide marketers with a powerful tool for identifying and targeting high-value audiences. But they don't assist in understanding media performance across paid, owned, and earned media, or provide recommendations for optimizing media spend.
Moreover, just because you know who a user is and the attributes associated with that user doesn't mean you know which media will drive a given business key performance indicator (KPI) across multiple channels.
Did the marketing touchpoint that he/she was exposed to help generate awareness, drive brand engagement, contribute to an eventual conversion, or trigger other desired action? If so, to what extent and at what point in the funnel?
DMP + Attribution = Actionable Marketing Intelligence