Why you need both consumer data and data management platforms

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There’s a funny thing about people: we always try to decide the “best” of something, whether it’s NBA players or data platforms. The truth is, most of the time we don’t deal with a zero-sum game. Often two similar services are better than joining forces rather than competing. LeBron James and Steff Curry on the same team, maybe? With LeBron’s playmaking and Stefan’s shooting, they’ll be invincible, right? The same is true with Consumer Data Platforms (CDPs) and Data Management Platforms (DMPs). They work in a variety of yet complementary ways. Collectively they are more powerful than they can be alone.

Let’s compare two types of data platforms together.

While this comparison can distinguish the two in a way that makes one seem superior to the other, the most efficient marketing strategies reflect the marriage of the two. They complement each other.

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We all know that not all consumer data platforms are created the same and different CDPs may have very different feature sets. CDP is a value-add for marketers who want to see all their customer data in one system and create their first-party data set for publishers through the registration wall. However, not all users log in to all sites (and if they are forced to, they can leave)! On the open web, the average publisher can only certify 20% of its audience, i.e.80% of publisher audiences are blind to CDP, Which limits its scalability. There is no built-in mechanism to augment authenticated data with anonymous data, so DMP is a critical value-addition.

CDP collects signals but lacks a method for classifying users PersonalityThe CDP can identify how often a person is on the site and what time they are on the site but cannot estimate the exact number of people. Demographic Visiting the site, which is important for buying and selling advertising inventory. Again, this is where DMP analytics is extremely useful and fills in the gaps that CDP cannot.

On the other hand, why does DMP need CDP? Because in an increasingly data-privacy-focused world, the ability to collect, organize, and centralize customer-level, first-party data is becoming more important than ever.

CDPs can retrieve data from DMPs and share information with them. Two systems work With To enrich the customer profile. By integrating DMP with CDP, digital marketers can access first-party data to see what consumers are doing outside of their interaction with the brand and find out what they want in micro moments.

In short: CDP is natural CustomersIs about DMPs AudienceIs about using the power of CDP Known, user-level informationDMPs are about using power Unknown, anonymous informationThe data of tomorrow will be driven by a number of identifiers with a range of first-, second- and third-party data, and whoever specializes in integrating and integrating these identifiers will provide the highest value.

Will these technologies morphe into new types of platforms or even joint offerings over time? Yes! We are already seeing that now, capabilities like DMP in CDP are in-house and vice versa. And we’re seeing the transformation of DMPs into identity-centered audience management platforms. Regardless, publishers and marketers must use both types of techniques in concert to resolve their data usage cases. Bring Steff and LeBron together in a team and You will Become a true All-Star!

Shiv Gupta is the Managing Partner of U of Digital,


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