Raju Malhotra is svp of products at Conversant.
The recent publication of Forrester’s Wave report on data management platforms (DMPs) is the latest indication that many marketers are now closely evaluating them. The concept behind a DMP, at least on the surface, seems promising. It offers everything a data-driven marketer could dream of: a single, actionable view of each consumer.
The only problem is, DMPs don’t fully deliver on that promise.
Too often, today’s DMP solutions are glorified data warehouses, filled with website logs, app logs and other consumer info. The data usually isn’t thorough, and while connections may be found between devices as well as some online and offline data, nothing consistently and persistently ties back to an individual.
The result for consumers is a poor experience. They see repeated ads, ads intended for other members of their household, and ads featuring products they’ve already purchased from the brand (or products just like them that they bought from a competitor). The result for marketers is wasted impressions, wasted money and a poor ROI.
The question marketers need ask isn’t, “which DMP should I use?” but instead, “which solution best improves my actionable audience size with high accuracy and persistence?”
Here are five things to keep in mind to get the most out of your data.
One view of each consumer, across all channels.
This requires a new approach to managing consumer data, balancing the precision of old-school customer relationship management (CRM) programs with the scale that digital channels provide today. That means creating a singular, anonymized consumer ID — one that doesn’t perish, even as cookies decay, addresses change and devices are replaced. Data may go away (and that’s unavoidable), but the consumer ID should persist for ongoing conversations across all marketing channels.
Data pulled from all available sources.
Less than 10 percent of a brand’s consumer interactions are in a state where the consumer’s identity is known. More than 90 percent are anonymous. In order to engage with existing as well as new customers, marketers need to tie together various personally identifiable information (PII) and non-PII identities of their customers and prospects, within a privacy framework. This includes CRM (e.g., email, direct mail), anonymous data (e.g., cookies, device IDs) and transactions (online and offline).
Active, actionable and fresh data.
Being consumer-centric requires connecting often with consumers as individuals, not just as cookies or devices. Marketers shouldn’t have to rely on data that sits in a stale warehouse.
Relationships that grow.
Done right, and with enough data, relationships with consumers (via their anonymous consumer IDs) can eventually be built and strengthened with every ongoing consumer interaction.
Data as part of an integrated solution.
When marketers consider the entire chain of custody of their data as an integrated solution, rather than using a fragmented solution for onboarding, managing (DMP) and activating (DSP) it separately, there are fewer layers of data loss and little drop-off in actionable audience size.
Separating the hype from the reality of a standard DMP may cause some discomfort. But if it means creating a better solution to connect more accurately with your customers and prospects, then it will all be worth it.
‘As many eyes on the spot’: Moen is targeting millennial homeowners with new ads, innovations as the generation seeks their first homes
The plumbing brand is renewing its marketing to get the attention of millennial homeowners with new TV spots as well as digital and social ads.
Myth buster: Debunking common misconceptions about the metaverse
To learn about the most common misconceptions about the metaverse, Digiday reached out to a group of experts across the gaming, advertising and Web3 sectors.
Q&A: Tim Armstrong on Web3, data and the ‘bundling’ of consumers
AOL's former chief — now the founder and CEO of Flowcode — discusses how the adoption of blockchain tech compares to earlier internet eras.
SponsoredWhat gaming habits reveal about media consumption
Jordan Shlachter, head of research, Activision Blizzard Media Entertainment choices have never been more abundant, and gaming has emerged as one of the biggest winners in the battle for audiences’ attention. While gaming’s exponential growth has been well documented — there are currently nearly 3 billion gamers worldwide spanning a diverse set of demographics, interests […]
‘Social listening is so important’: Hulu adapts social strategy to follow fans’ interest
While Hulu does make social marketing plans for each show, the company keeps tabs on social sentiment -- i.e. what's working and what's not -- and adapts its social strategy accordingly.
Magna research: The do’s and don’ts of native and repurposed advertising on TikTok
Advertisers on TikTok need to follow a few best practices if they're going to succeed on the platform, such as always thinking vertically, and being comfortable with the creator's style they work with.