To get ahead of the curve, businesses have to understand how customers make buying decisions. Without this knowledge, it is hard to analyze campaign efficiency to make a move towards the optimization of expenses. Putting customers first and giving them what they expect has become the cornerstone of business success.
Today, brands are looking to collect insights about their audience using technically advanced platforms. Organizations can reach practically every prospective client using Customer Data Platform and Data Management Platform. However, many are confused about this alphabet soup. They wonder if the two technologies differ or overlap.
Both platforms leverage various data sources. It is used to understand consumers’ digital behavior and provide “building rocks” to target particular audiences. But they work with drastically different types of data sets. Thus can address different marketing needs.
Why Choose DMP
What Data Management Platform Is
DMP refers to a centralized technological platform. It is used to collect disparate audience data from second- and third-party sources and categorize them for further analysis and allocation. DMPs work with anonymous audiences or new customer categories rather than familiar customers.
Types of Data Sets
DMPs work with second- and third-party data but rarely with first-party data. The platform mostly uses non-PII (personally identifiable information) data, like cookies or IP, to communicate with other systems compatible with third-party data. DMP data doesn’t provide a connection to particular identities. On the contrary, it builds a temporary customer profile based on anonymous third-party data.
How DMP Works
DMPs are used to target and retarget users with the help of cookie IDs. The platform can track a cookie ID and collect the data about user behavior. All this is happening while the user continues browsing the Internet. The tool records anonymous customer data and categorizes it as a relevant data segment. Then this data is retained until the cookie lifetime expires in a 90-day interval. Eventually, DMP analyzes the data to craft look-alike audiences, which helps to enhance marketing campaigns.
DMP is your choice when you need to access the audience segments most suitable for the given campaign. As third-party data is collected and retained under one hood, DMP lets you run more efficient advertising and marketing campaigns. Using DMP-enabled data, you can determine how to tune your targeting for marketing needs. It will also help to control expenditures.
Why Choose CDP
What a Customer Data Platform Is
CDP is a tool used to build a unified customer database. This database is accessible to external MarTech and AdTech tools and systems. The platform integrates various data from any data source. It is further used to create personalized profiles.
Types of Data Sets
CDP works with any type of PII be it transaction data or email. The tool relies on first- and second-party data and unifies numerous identifiers into one profile. CDP stores detailed data in chronological order. In addition, it has unlimited storage capacity as well as strong data retention capabilities.
How CDP Works
CDP data collection occurs in automated fashion across different channels in the MarTech ecosystem. The technology allows a full 360-degree view of the customer profile to be created. It also ensures user profile data refresh with the help of real-time segmentation. CDP then activates that data for various marketing purposes.
CDP is your choice if you want to connect every customer touchpoint with your brand to craft a superior cross-channel customer experience. Thanks to CDP’s outstanding accessibility functions, it is easy to consolidate every marketing effort. Thus you will be able to respond timely to every marketing challenge.
DMP or CDP: Which Tool to Choose
Used in isolation, each platform can become a valuable AdTech and MarTech asset.
If you are still confused about CDP or DMP for your next marketing effort, start with considering a particular use case.
For example, if you aim to engage with customers unfamiliar with your brand, use a DMP. It helps to collect anonymous data about your best customers. With a CDP, your reach to individual customers will become more targeted through unified customer profiles.
As a leading AdTech and MarTech development company, Geomotiv will help you unlock the full potential of advanced data-driven platforms that bring true value to the business. Our skilled developers can design and build a custom DMP and/or CDP from scratch. Furthermore, they can integrate any AdTech and MarTech tools into your existing platform.
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