How Data Management Platforms Can Help Marketers Promote Business Growth

By Jennifer Marley

Consumers are increasingly picky about the advertisements they see and the products they buy, and it’s no wonder: the global amount of data is growing rapidly every day, as over 4 billion internet users generate thousands of gigabytes per second. In response, businesses are looking to create personalized messages to retain clients and attract new customers – all of which requires concerted data management. In fact, over 40% of companies plan to expand their budgets for data-driven marketing, according to a report by eMarketer. Not to mention, big data and business analytics software are expected to reach $200 billion in revenue by 2019.

With 78% of marketers saying that data management platforms (DMP) are embedded in the overall success of a business marketing campaign, there is no denying that this concept is gaining more attention. So, are you ready to use this strategy in your own company? Here’s how data in digital marketing can promote business growth.

Role of Data Management Platforms in Digital Marketing

A data management platform consumes data, organizes it, and provides many functionalities. For digital marketers, DMP caters to online activity behavior, purchasing data, marketing campaign data, third-party enrichment data, and so on.

  • Market Segmentation – The core functionality of data management is to match user profiles from multiple sources to build market segments. This creates the necessary bridge between the marketing technology ecosystem of CRM (Customer Relationship Management), e-commerce, CMS (Content Management System), marketing automation, and the advertising technology ecosystem of data exchange, SSP (Supply-side Platform), DSP(Demand-side Platform), and publishers.
  • Media Buying and Optimization – Most companies use DMP to address the two main issues of targeted media and buying. One of the most valuable skills in digital marketing is the ability to target the right audience by relating behavioral segments to purchasing platforms derived from analyzing online user profiles. Data management allows users to take advantage of analytics and tracking capabilities needed to optimize ad spend. Through cross-channel and attribution modeling, the results provide significant savings for advertisers who tend to overspend on their budget.

Benefits of DMP for Your Business

Data Management Platforms help businesses process and manage the information along with new opportunities. By implementing DMP in your business, the platform can help you by offering the following:

  • Gathering data in one platform – Data Management Platforms allow brands to collect data from their own sources and from partners. Through attributes and events, you can build a proper data management platform and collect information from user activity.
  • Gain customer insights – Without enough data from the audience, you cannot design a proper customer journey. Customer data allows marketers to tailor campaigns that speak to each niche. In fact, marketers that exceed their revenue goals used personalization techniques 83% of the time in 2017, based on a survey by Monetate.
  • Use 3rd party data to discover new markets – A strong advantage of data management is gaining access to third-party information, which is data from internet users that spans more than two hundred markets worldwide. It allows digital marketers to discover new markets by using high-quality user profiles that include basic interests, purchase intentions, and demographic information.

When you take time looking into the details of your business growth and success, the opportunities that you can find are almost as valuable as the service itself. Good data analytics combined with a digital marketing plan are the tools you need for the growth of your business now and in the future.

Big Data Collection: What’s in it for Me?

Girl with a bar code on her neck, the protection personal data

Many of us stand to benefit from certain types of big data collection. In the medical field, big data can be applied in numerous ways, for example: predictive modeling for R&D, enhancing clinical trial design, or conducting Comparative Effectiveness Research (CER).

The idea behind big data is that everybody’s data goes into a big pool, which is then analyzed to find patterns and trends.  We may learn that x and y are indicators of condition z later on in life, and we can then institute preventative care… and, that’s certainly using Big Data to benefit people.  [Click here to read more about big data in the Healthcare community]

Or, it is mostly used to give companies a competitive edge, like in the Financial Services industry.  Financial services firms are utilizing big data to transform their processes, their organizations and perhaps, their entire industry. This isn’t quite as beneficial on the individual level as in the healthcare industry scenario, but we still stand to benefit, from lower prices, or higher growth in our long-term accounts, or even just by having expectations based on a big data set.  [Click here for an IBM article on big data in the Financial Services world]

But, on the flip side,  big data could also be used to advertise to us in seemingly manipulative ways.  And what if sensitive data gets into the wrong hands? Many people are concerned about that.

In a research article conducted by BI and data software review firm Software Advice, Consumer Positions on Data Collection and Use, they take a look at how people feel about data collection as a concept, as it relates to Medical, Financial, and Employee-related data.

It turns out many of the people they interviewed do not have a strong opinion, but a few themes were clear. The report showed that people over the age of 45 were more uncomfortable or skeptical about sharing their personal data in general.  The older you are, the more likely you have been burned by sharing personal data. People under the age of 45 tend to be more optimistic.  They are still cautious, but are more likely to share their data if there is a clear benefit to them.

 Comfort With Use of Data (Age-in general)Comfort With Use of Data (Age-if benefit)

 

The full report can be found here, but as a general rule, if a company is going to collect data, people share more generously if the reason and benefit to sharing that information is transparent from the start.