Role of Data Management Platforms and Demand Side Platform in the Adtech Ecosystem

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Role of DMP and DSP in Adtech Ecosystem

It is very important to understand various types of software solutions early on and understand the full scope of programmatic media solutions. Data management solutions and demand-side platforms are among the large technology units of the programmatic ecosystem. Its goal is to enhance the data-driven strategy and allow you to manage all your audience data seamlessly.

So let’s understand what is DSP.

DSP is software that allows media advertisers and digital agencies to bid in real time (RTB). Provides centralized purchasing of ad inventory to display ads to users at optimal value.

And what is DMP?

Data management is nothing more than a user data warehouse – software that manages and classifies all kinds of customer data collected from various sources and platforms. It also has an automated audience targeting feature where digital advertisers can easily create a highly targeted ad that resonates with all kinds of customer needs.

Therefore, DSP and DMP together allow you to connect the dots and get easy solutions in your daily business operations.

Now let’s take a look at DSP and DMP trends

Statista research has revealed that the entire data management platform services market in Japan is projected to reach 11 billion Japanese yen by 2022.

Ad publishers, media buyers, and marketers frequently use data management platforms to gain more complete control over data and turn this insight into actionable, high-value data.

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Other than that, the Econsultancy study shows that 68% of digital marketers see DMP as the critical factor in reshaping the programmatic future. DMPs also aim to link all customer data and store it in a uniform centralized location. As the DMPs themselves do not work much without being linked to other technological solutions. As your audiences are segmented, you will be able to serve your ads with the help of the Demand Side Platform.

The main function of a demand-side platform is to facilitate interactions between advertisers and publishers and buy impressions. When a platform is enriched with information from the data management platform, the demand-side platform automatically decides which print is best to bid on and targets the right people. Apart from that, DSP also consists of a separate entity, a mobile DSP, which is often used by media owners.

Now let’s compare DMP vs. DSP

Demand-side platforms might collect data only from marketing campaigns. While data management platforms can collect data from multiple sources.

Demand-side platforms are software for inventory buyers only. At the same time, data management platforms collect all kinds of first-, second-, and third-party data. In addition, it collects data from customer relationship management.

DMP offline demand-side platforms use limited targeting parameters. And DSP needs additional data sets to perform extended audience targeting. At the same time, DMP allows you to access all kinds of user data and opens the door to behavioral targeting based on parameters such as habits, lifestyle, preferences, etc.

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Demand-side platforms store data that could be used in other digital marketing campaigns, which would help increase efficiency. Whereas DMP ensures a much higher level of consumer data protection and optimizes audience segment performance further. DMP user data also belongs to the owners and is not shared anywhere, thus minimizing the risks of data leakage and fraud.

Now, let’s look at some common demand-side platform cases.

When should you use a DSP?

– For the campaign budget

Demand-side platforms reduce advertising waste by bidding in real time on an impression when it matches your defined optimal price.

– For advanced analysis

An intelligent demand-side platform will provide you with analytics taking into account your campaign performance in real time, allowing you to be more effective in optimizing campaigns in the future. It also helps you define and work in a better way.

And when to use DMP?

Well, you use a data management platform for the following cases.

– Data collection

You’ll be able to collect multiple types of data in one place and get a 360-degree view of your potential audiences.

-To offer personalized experiences

By accumulating all customer insights, advertisers could optimize their ad campaigns and deliver personalized messages.

– To define audience segments

Based on audiences, user segment advertisers could diversify ad campaign delivery, such as selecting audience segments or choosing multiple delivery times.

The future of data-driven programmatic advertising lies in a smart integration of DSP and DMP and the right combination, which will lead to better management of digital marketing campaigns.

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