What is DMP? What are the advantages and disadvantages? Points to note when introducing, how to choose, and usage examples

DMP is attracting attention as a system that utilizes huge amounts of data for marketing. DMP is software that can collect and analyze data regardless of whether it is external or internal, online or offline. We will introduce the advantages and disadvantages of introducing DMP, as well as examples of companies that are actually using DMP.

What is DMP?

DMP is an abbreviation for Data Management Platform. It refers to a platform that can collect, analyze, and utilize all kinds of data, including offline external information on the Internet.

Features of DMP

It is characterized by the ability to centrally manage data from a wide range of genres and effectively utilize it for marketing measures. The collected data is easily visualized in reports, so you can use it to take appropriate measures such as advertising and email newsletter distribution.

How to use DMP

・Data collection



・Data analysis



・Data utilization

DMP is widely understood as software that can be used for marketing, but there are three specific ways to use it:

data collection

User behavior history, purchase history, access history, etc. can be collected both online and offline. We obtain not only basic information such as the user’s age and gender, but also information such as interests and preferences from websites, SNS, and other sources.

data analysis

Manage, categorize, and analyze data stored in your DMP. You can quantify and visualize all kinds of information about what kind of users are behaving with what trends. Some DMPs have reporting functions in various formats to make it easier to understand information.

Data utilization

The analyzed data is actually used in marketing measures. Depending on the DMP, it is also possible to link with external marketing tools such as e-mail newsletters and advertisements. Marketers come up with measures based on the reported data.

Examples of data that can be handled by DMP

・Open DMP



・Private DMP

DMP can be divided into two types depending on the data handled. We will explain specific examples and characteristics of each.

open dmp

Open DMP manages external data. We handle data from third parties. Since it deals with age, gender, interests, preferences, website behavior history, etc., it can be said to be suitable for cultivating new customers.

Private DMP

A private DMP handles internal information that cannot be known to anyone outside the company. It is suitable for approaching existing customers because it contains attribute data of each customer, such as customer purchase history and behavior history.

Advantages of introducing DMP

・Capable of collecting and analyzing huge amounts of data



・Leads to more efficient work



・Detailed targeting is possible

DMP brings various benefits to marketing instead of people. We will introduce the benefits that will allow you to implement measures that you have been stalling on until now.

Capable of collecting and analyzing huge amounts of data

DMP can centrally manage multiple genres of data, including your own customer data, purchasing information, and POS data. It will be possible to collect, manage, and analyze vast amounts of information that cannot be processed by humans. Also, depending on the DMP used, in many cases one of the benefits is that the collected data can be linked with other tools.

Leads to more efficient work

You no longer have to spend time collecting and analyzing data yourself, which speeds up your work. The big advantage is that the collected data is not just numbers, but can be reported in a way that is easy to analyze and understand. You can check the relevant data when you need it, leading to improved work efficiency.

Allows for detailed targeting

Data analysis allows for the optimal approach to each individual user. For example, the content and timing of email distribution, and the selection of recommended products and services. Compared to conventional methods that could only target in a wide range, DMP allows for more detailed targeting.

Disadvantages and improvement measures of introducing DMP

・Securing human resources is essential



– Responsibility is unclear



・Hurdles in information utilization

Since DMP implementation involves handling data, there are various responsibilities and obstacles. Although it can be time-consuming and costly, and it can be said that there are high hurdles to implementation, there are improvement measures for each, so please take a look at them.

Securing human resources is essential

Depending on the amount of data handled, more human resources are required. Managing huge amounts of data by just one person is risky, and especially when handling your own company’s information, you also need people with considerable knowledge.

If you want to utilize existing data within your company, start by creating a system that allows you to utilize the data. Missing functions need to be developed, which also requires knowledgeable personnel.

Responsibility is unclear

In the case of a private DMP, data authority differs from department to department within the company, and the locus of responsibility may become unclear. Utilization of data involves great risks, so it is necessary to decide who will take what responsibility.

In addition, it is necessary to take measures to ensure security and privacy are taken into consideration to prevent problems such as information leaks.

Hurdles to information utilization

When implementing a DMP, it is necessary to specifically decide on the time and cost involved, as well as how the information will be used. In other words, it is necessary to clarify “what” you want to do when introducing a DMP. If implementation becomes your goal, you will end up not being able to utilize the information you have gathered. Let’s analyze the results and work on the ”

PDCA cycle

” that repeats planning, execution, verification, and improvement.

Additionally, although training costs are high, it is necessary to take measures such as training employees to increase their understanding of DMP.

DMP usage examples

Major companies also use DMPs to collect data both inside and outside their companies and use it to inform their next measures. Let’s find out what kind of measures are being taken when introducing DMP and use it as a reference.

Bizreach

The job search site BizReach uses Yahoo! to improve operational efficiency and reduce the burden of “in-house marketing,” which involves conducting marketing activities in-house. We conducted a demonstration experiment of “Yahoo! DMP” with JAPAN.

We are working on measures to acquire a potential customer base using DMP, and are also promoting the use of Sponsored Search’s automatic bidding function.

Shiseido

Shiseido has adopted the private DMP “TREASURE CDP (formerly TREASURE DMP)” to understand customers’ beauty consciousness.

TREASURE CDP met the needs of Shiseido, which had a small number of engineers, wanted to make it easier to collect log data, and wanted something that could be easily linked with external services. In fact, it can now be operated almost solely by marketers, allowing them to approach customers at the right time.

Japan trip

Nippon Travel uses Brainpad’s private DMP “Rtoaster” for its digital marketing “My Coupon” service. The click-through rate (CTR) for coupons has improved by up to 15 times, and the conversion rate (CVR) for travel applications from coupons has improved by 3 times.

Rtoaster uses machine learning algorithms to automatically display the most recommended coupons based on customer purchase information and website behavior history.

Summary: Accelerate marketing with DMP

Using a DMP makes it easier to utilize internal and external data to develop new marketing measures.

Not only does it contain all kinds of data about existing customers, but it also contains hints that can help you acquire new customers, so be sure to clarify the purpose of how you will use the collected data before implementing it.

Another term used with a similar meaning to DMP is “CDP (Customer Data Platform).” Please refer to the following article for the difference between DMP and CDP.

Click here for CDP (Customer Data Platform) meaning and difference from DMP

A DMP is like a box that stores a huge amount of information. This makes it possible to conduct marketing more efficiently and optimally for each customer. Running the PDCA cycle based on data will lead to improvements in your company’s operations.