Partner Article

DMPs the 'norm' but not at full potential

Five years after Data Management Platforms (DMPs) arrived, they have become a digital marketing staple, with 92% of European media buyers and sellers set to have a DMP in place by 2018, according to a new study by ExchangeWire and Weborama.

Yet while the study found that many adopters were experiencing the benefits of DMPs - 76% of publishers and 75% of trading desks use DMPs to create new revenue streams from data - it also revealed a tendency to view the technology as a ‘plug and play’ service was preventing early users from realising its full potential.

More than one in four respondents said that disparate data sets (48%), siloed teams (46%), and a lack of skills in house (41%) were challenges to the implementation of their DMP - indicating that a high proportion of users do not have the right operational systems in place. It is likely that this is due to limited knowledge of how DMPs should be used - 45% of respondents admitted that a lack of knowledge is a barrier to adoption.

It is therefore no surprise that usage of DMPs has proved a learning curve for early adopters whose needs have grown more sophisticated over time. When reviewing their current installation, organisations that have been using a DMP for over two years present needs that are not only different to early adopters, but also more challenging for DMP providers.

Long-term users view DMPs as more than simply an activation tool and want to use it to facilitate better media buying and marketing engagement strategies. It is clear that with continued usage comes a deeper understanding that leads to greater benefits and a desire to push current boundaries.

UK respondents - who are most advanced in their DMP adoption - cite one of their biggest frustrations with DMPs as insufficient data insights, pointing towards customer intelligence as the next big challenge for DMP vendors. This may also explain why further integration with their existing technology stack is a priority for 21% of respondents overall.

Mathieu Roche, Global Business Development Director at Weborama said, “DMPs are not a one-size-fits-all type of solution and need to be chosen and implemented in a customised manner by each organisation. DMPs offer a way to break down the walled gardens imposed by some large online advertising platforms, and enhance data-driven efforts. Yet it is vital for brands, publishers and agencies to ensure they have the right knowledge, and systems, in place for their DMP to realise its full potential.”

Julian Brewer, head of TSB digital commerce, said: “We’ve used a DMP for a number of years and ‘learning through doing’ has certainly changed our view of how we use it and what we want and don’t want from a DMP platform. We’re currently exploring our requirements from a 2nd generation DMP and looking back at our initial demands… they are markedly different.”

But satisfaction amongst those who have unlocked the benefits of their DMP is high, almost 90% of respondents said they were either ‘very satisfied’ (24%) or ‘satisfied’ (65%) with their DMP. Over half (55%) say they have calculated positive ROI from their DMP, although three in 10 respondents (29%) admit it is too early to tell the ROI their DMP has delivered.

Rebecca Muir, head of research and analysis at ExchangeWire, said: ““The difficulties the study has highlighted in measuring ROI are a strong indication that many businesses have not fully integrated their DMP with overall business strategy. To effectively calculate the results of implementing a DMP, data-driven marketing activity must first be aligned to core business goals and the metrics that will be used to gauge performance should be clearly defined before campaigns begin.

“DMPs have the power to positively impact a variety of areas, from audience targeting and the efficiency of media buying to sales and customer retention, which means businesses need to establish the unique areas in which they expect their DMP to boost performance if they want an accurate view of the ROI it generates. DMPs are a long-term investment and to realise the benefits of centralised, efficient data management, performance measurement must be tied to long-term business plans.”

Now an integral element of the marketing mix, it will be essential for publishers, brands and agencies to develop their understanding of DMPs and how they should be used effectively to ensure they are prepared for an increasingly data-driven digital landscape.

To read the full report please visit: https://www.exchangewire.com/weborama-report/

This was posted in Bdaily's Members' News section by ExchangeWire .